2023 New Mexico Statutes
Chapter 7 - Taxation
Article 24 - Municipal and County Gross Receipts Tax on Liquor
Section 7-24-10.1 - Use of tax proceeds; local liquor excise tax committee; joint powers agreement; community participation.
A. Prior to an election on the question of imposing a local liquor excise tax pursuant to the provisions of the Local Liquor Excise Tax Act [7-24-8 to 7-24-16 NMSA 1978], the governing body of a county shall enter into a joint powers agreement with the governing body of the most populated municipality and the governing bodies of any other municipalities in the county that choose to be parties to the agreement to provide for the use and administration of the tax proceeds. The agreement shall provide for the establishment and appointment of a local liquor excise tax committee to provide advice, assist in preventing duplication and supplanting of program funding and make recommendations to the governing body of the county and the municipal governing bodies that are parties to the agreement on the use of the tax proceeds. The agreement shall:
(1) clearly specify the use of the proceeds of the proposed local liquor excise tax, including the identification of specific local programs, agencies or entities that will be funded from the tax proceeds;
(2) determine the allocation of election expenses among the parties to the agreement;
(3) clearly specify that the detoxification center located within a municipality with a population of not less than fifteen thousand and not more than thirty-five thousand according to the most recent federal decennial census providing social detoxification treatment with the greatest numbers of adult clients shall receive the funding necessary to provide social detoxification of alcohol and drug treatment for adults;
(4) provide that the remaining proceeds of the proposed local liquor excise tax shall be used to fund social detoxification of alcohol and drugs for juveniles and other prevention and treatment programs as recommended by the local liquor excise tax committee; and
(5) clearly specify that each specific local program, agency or entity that is funded from the tax proceeds shall be audited at its own expense and provide accountability reports to the governing body of the county and municipal governing bodies that are parties to the agreement within thirty days of the end of each quarter of the calendar year, including an itemized breakdown of program services and expenditures.
B. Prior to the agreement by the governing body of a county and the municipal governing bodies for use of the proposed local liquor excise tax proceeds, the local liquor excise tax committee established pursuant to the provisions of Subsection A of this section shall conduct a public hearing for the purpose of inviting public comment on use of the proposed local liquor excise tax proceeds. The committee shall make every effort to provide public notice of the hearing and to invite a broad cross-section of community representatives and groups to comment on community needs. Following the hearing, the committee shall make its funding recommendations to the governing body of the county and the municipal governing bodies.
C. On or before April 1 of each calendar year, the governing body of a county or municipality that has entered into an agreement pursuant to Subsection A of this section shall submit to the department of finance and administration a report itemizing the receipts, expenditures and number of clients served pursuant to any such agreement for the preceding calendar year. On or before July 1 of each year, the department of finance and administration shall complete an audit of the county's report submitted pursuant to this section and shall report its findings to the appropriate interim legislative committee before September 1 of that year.
D. If a local program, agency or entity receiving funds from local liquor excise tax proceeds fails to timely submit an accountability report pursuant to Paragraph (5) of Subsection A of this section, the county or municipality shall be immediately prohibited from disbursing any further funds to such local program, agency or entity until the delinquent accountability report has been submitted to and accepted by the governing board of the county and the municipal governing bodies.
History: 1978 Comp., § 7-24-10.1, enacted by Laws 1992, ch. 35, § 1; 2013, ch. 218, § 2.
ANNOTATIONSCross references. — For the Joint Powers Agreements Act, see 11-1-1 NMSA 1978 et seq.
The 2013 amendment, effective July 1, 2013, permitted local liquor excise tax proceeds to be used for social detoxification; in Subsection A, in the introductory paragraph, in the second sentence, after "the county and the", added "municipal" and after "tax proceeds", deleted "and may include agreements that", and at the beginning of the third sentence, added "The agreement shall"; in Paragraph (1) of Subsection A, after "specify the use", added "of the proceeds"; added Paragraphs (3) through (5) of Subsection A; in Subsection B, in the first sentence, after "use of the", added "proposed local liquor excise" and after "pursuant to", deleted "joint powers agreement in" and added "provisions of"; and added Subsections C and D.
