New Mexico § 60-1A-20 - Daily capital outlay tax; capital outlay offset; state fair commission distribution; daily license fees

§ 60-1A-20. Daily capital outlay tax; capital outlay offset; state fair commission distribution; daily license fees

A. A “daily capital outlay tax” of two and three-sixteenths percent is imposed on

the gross amount wagered each day at a racetrack where horse racing is conducted on

the premises of a racetrack licensee and also on the gross amount wagered each day

when a racetrack licensee is engaged in simulcasting pursuant to the Horse Racing

Act. After deducting the amount of offset allowed pursuant to this section, any remaining

daily capital outlay tax shall be paid by the commission to the taxation and revenue

department from the retainage of a racetrack licensee from on-site wagers made on

the licensed premises of the racetrack licensee for deposit in the general fund. Of the daily capital outlay tax imposed pursuant to this subsection: (1) for a class A racetrack licensee, not more than one-half of the daily capital

outlay tax imposed on the first two hundred fifty thousand dollars ($250,000) of the

daily handle may be offset by the amount that the class A racetrack licensee expends

for capital improvements or for long-term financing of capital improvements at the

racetrack licensee's existing facility; (2) for a class B racetrack licensee, not more than one-half of the daily capital

outlay tax imposed on the first two hundred fifty thousand dollars ($250,000) of the

daily handle may be offset: (a) in an amount not to exceed one-half of the offset allowed, the amount expended

by the class B racetrack licensee for capital improvements; and (b) in an amount not to exceed one-half of the offset allowed, the amount expended

by the class B racetrack licensee for advertising, marketing and promoting horse racing

in the state; (3) through December 31, 2014, for both class A and class B racetrack licensees, an

amount equal to one-half of the daily capital outlay tax is appropriated and transferred

to the state fair commission for expenditure on capital improvements at the state

fairgrounds and for expenditure on debt service on negotiable bonds issued for the

state fairgrounds' capital improvements; and (4) on and after January 1, 2015, for both class A and class B racetrack licensees,

an amount equal to one-half of the daily capital outlay tax is appropriated and transferred

to the racehorse testing fund. B. An additional daily license fee of five hundred dollars ($500) shall be paid to

the commission by the racetrack licensee for each day of live racing on the premises

of the racetrack licensee. C. Accurate records shall be kept by the racetrack licensee to show gross amounts

wagered, retainage, breakage and amounts received from interstate common pools and

distributions from gross amounts wagered, retainage, breakage and amounts received

from interstate common pools, as well as other information the commission may require. Records shall be open to inspection and shall be audited by the commission, its

authorized representatives or an independent auditor selected by the commission. The commission may prescribe the method in which records shall be maintained. A racetrack licensee shall keep records that are accurate, legible and easy to understand. D. Notwithstanding any other provision of law, a political subdivision of the state

shall not impose an occupational tax on a horse racetrack owned or operated by a racetrack

licensee. A political subdivision of the state shall not impose an excise tax on a horse racetrack

owned or operated by a racetrack licensee. Local option gross receipts taxes authorized by the state may be imposed to the

extent authorized and imposed by a subdivision of the state on a horse racetrack owned

or operated by a racetrack licensee.