Below are the two statutes outlining the implementation and use of Lodgers' Tax Revenue from NMSA 1978. Despite the reference to "1978", this is the current set of statutes in place for the state of New Mexico.
The title "Lodgers' Tax" is often seen with and without an apostrophe. The NMSA uses an apostrophe, so that would seem to be the most official format.
A. A
municipality may impose by ordinance an occupancy tax for revenues on
lodging within the municipality, and the board of county commissioners
of a county may impose by ordinance an occupancy tax for revenues on
lodging within that part of the county outside of the incorporated
limits of a municipality.
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B. The occupancy tax shall not exceed five percent of the gross taxable rent.
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C. Every vendor who is furnishing any lodgings within a municipality or county is exercising a taxable privilege.
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D.
The following portions of the proceeds from the occupancy tax shall be
used only for advertising, publicizing and promoting tourist-related
attractions, facilities and events:
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(1)
if the municipality or county imposes an occupancy tax of no more than
two percent, not less than one-fourth of the proceeds shall be used for
those purposes;
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(2)
if the occupancy tax imposed is more than two percent and the
municipality is not located in a class A county or the county is not a
class A county, not less than one-half of the proceeds from the first
three percent of the tax and not less than one-fourth of the proceeds
from the tax in excess of three percent shall be used for those
purposes; and
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(3)
if the occupancy tax imposed is more than two percent and the
municipality is located in a class A county or the county is a class A
county, not less than one-half of the proceeds from the tax shall be
used for those purposes.
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E.
The proceeds from the occupancy tax in excess of the amount required to
be used for advertising, publicizing and promoting tourist-related
attractions, facilities and events may be used for any purpose
authorized in Section 3-38-21 NMSA 1978.
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F.
The proceeds from the occupancy tax that are required to be used to
advertise, publicize and promote tourist-related attractions, facilities
and events shall be used within two years of the close of the fiscal
year in which they were collected and shall not be accumulated beyond
that date or used for any other purpose.
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G.
Notwithstanding the provisions of Paragraph (2) of Subsection D of this
section, any use by a municipality or county of occupancy tax proceeds
on January 1, 1996 may continue to be so used after July 1, 1996 in
accordance with the provisions of this section and Section 3-38-21
NMSA 1978 as they were in effect prior to July 1, 1996; provided, any
change in the use of those tax proceeds after July 1, 1996 is subject to
the limitations of that paragraph.
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H.
Notwithstanding the provisions of Paragraph (2) of Subsection D of this
section, the payment of principal and interest on outstanding bonds
issued prior to January 1, 1996 pursuant to Section 3-38-23 or 3-38-24 NMSA 1978 shall be made in accordance with the retirement schedules of
the bonds established at the time of issuance. The amount of
expenditures required under Paragraph (2) of Subsection D of this
section shall be reduced each year, if necessary, to make the required
payments of principal and interest of all outstanding bonds issued prior
to January 1, 1996.
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Subject to the limitations contained in Section 3-38-15 NMSA 1978, a municipality or county imposing an occupancy tax may use the proceeds from the tax to defray costs of:
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B.
establishing, operating, purchasing, constructing, otherwise acquiring,
reconstructing, extending, improving, equipping, furnishing or
acquiring real property or any interest in real property for the site or
grounds for tourist-related facilities, attractions or transportation
systems of the municipality, the county in which the municipality is
located or the county;
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C.
the principal of and interest on any prior redemption premiums due in
connection with and any other charges pertaining to revenue bonds
authorized by Section 3-38-23 or 3-38-24 NMSA 1978;
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D.
advertising, publicizing and promoting tourist-related attractions,
facilities and events of the municipality or county and tourist
facilities or attractions within the area;
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E.
providing police and fire protection and sanitation service for
tourist-related events, facilities and attractions located in the
respective municipality or county; or
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F.
any combination of the foregoing purposes or transactions stated in
this section, but for no other municipal or county purpose.
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Section 3-38-23 and 3-38-24 NMSA 1978 pertain to issuing and paying the cost of bonds with the Lodgers' Tax and offer no new insights into the allowable uses for the funds.
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