New Mexico § 7-1-6.4 - Distribution; municipality from gross receipts tax

§ 7-1-6.4. Distribution; municipality from gross receipts tax

A. Except as provided in Subsection B of this section, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality in an amount, subject to any increase or decrease

made pursuant to Section 7-1-6.15 NMSA 1978 , equal to the product of the quotient of one and two hundred twenty-five thousandths

percent divided by the tax rate imposed by Section 7-9-4 NMSA 1978 multiplied by the net receipts, except net receipts attributable to a nonprofit hospital

licensed by the department of health, for the month attributable to the gross receipts

tax from business locations: (1) within that municipality; (2) on land owned by the state, commonly known as the “state fairgrounds”, within

the exterior boundaries of that municipality; (3) outside the boundaries of any municipality on land owned by that municipality;

and (4) on an Indian reservation or pueblo grant in an area that is contiguous to that

municipality and in which the municipality performs services pursuant to a contract

between the municipality and the Indian tribe or Indian pueblo if: (a) the contract describes an area in which the municipality is required to perform

services and requires the municipality to perform services that are substantially

the same as the services the municipality performs for itself; and (b) the governing body of the municipality has submitted a copy of the contract to

the secretary. B. If the reduction made by Laws 1991, Chapter 9, Section 9 to the distribution under

this section impairs the ability of a municipality to meet its principal or interest

payment obligations for revenue bonds outstanding prior to July 1, 1991 that are secured

by the pledge of all or part of the municipality's revenue from the distribution made

under this section, then the amount distributed pursuant to this section to that municipality

shall be increased by an amount sufficient to meet any required payment, provided

that the distribution amount does not exceed the amount that would have been due that

municipality under this section as it was in effect on June 30, 1992. C. A distribution pursuant to this section may be adjusted for a distribution made

to a tax increment development district with respect to a portion of a gross receipts

tax increment dedicated by a municipality pursuant to the Tax Increment for Development

Act. D. As used in this section, “ nonprofit hospital ” means a hospital that has been granted exemption from federal income tax by the

United States commissioner of internal revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code .