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549 TOWN OF TAOS ORDINANCES YEAR; NUMBERS ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 549 TO PROVIDE FOR THE RAISING OF REVENUES FOR GENERAL GOVERNMENTAL PURPOSES OF THE TOWN OF TAOS BY IMPOSING A SALES TAX UPON PERSONS ENGAGING IN BUSINESS WITHIN THE TOWN OF TAOS, NEW MEXICO= PROVIDING FOR THE LEVY, ASSESSMENT, AND COLLECTION OF THE TAXES IMPOSED; PROVIDING FOR THE DISTRIBUTION OF THE TAXES SO COLLECTED; PROVIDING PENALTIES FOR THE VIOLATION OF THE PROVISIONS OF THE ORDINANCE; PROVIDING FOR THE REPEAL OF CERTAIN SECTIONS AND ALL ORDINANCES IN CONFLICT HEREWITH; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE GOVERNING BODY OF THE TOWN OF TAGS, NEW MEXICO: Section 1. Sections 1 through 21 of Ordinance No. 549 are amended to read : "Section 1. AUTHORIZATION. The governing body Gf the Town of Taos, New Mexico, finding the Town of Taos to be an incorporated municipality under the laws of the State of New Mexico and finding the Town of Taos to be in need of revenue for governmentgLl purposes and the Council of the Town of Taos, New Mexico desirous of availing itself of the provisions of law contained in Sections 14-39-1 through 14-39-5, New Mexico Statutes Annotated, 1953 Compilation (being Laws 1965, Chapter 300, Sections 14-39-1 through 14-39-5, as amended) hereby fixes a municipal sales tax pursuant thereto. " "Section 2. DEFINITIONS. As used in this ordinance: A. "Bureau" means t}.e New Mexico Bureau of Revenue, the Commissioner of Revenue, or any employee of the Bureau exercising authority lawfully delegated to him by the Commissioner. B. "Buying" or 'Selling" means any transfer of property for consideration or any performance of service for consideration. C. "Contracting" means, but is not limited to, constructing, altering, repairing or demolishing any: (1) Road, highway, bridge, parking area or related project; (2) building, stadium or other structures (3) airport, subway or similar facilities; (4) park, trail, athletic field, golf course or similar facility; 00 (5) dam, reservoir, canal, ditch or similar facility; (6) sewage or water treatment facility, power generating plant, pump station, natural gas compressing station or similar facility; (7) sewage, water, gas or other pipeline; (8) transmission lines; (9) radio or other tower; (10) water, oil or other storage tanks; (11) shaft, tunnel or other mining appurtenance; (12) similar work. "Contracting" also includes : (13) Leveling or clearing land; (14) excavating earth; (15) drilling wells of any type, including seismograph shot holes or core drilling; or, (16) similar work. D. "Engaging in business " means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit. E. "Gross receipts" means the total amount of money or the value of other consideration received from selling property in the municipality, from leasing property employed in the municipality or for performing services in the muni- cipality, and includes any type of time-price differential and receipts from sales of property handled on consignment but excludes cash discounts allowed and taken. In an exchange in which the money or other consideration received does not represent the value of the property or service exchanged, "gross receipts" means the reasonable value of the property or service exchanged. -2- When the sale of property or service is made under any type of charge, conditional or times sales contract or the leasing of property is made under a leasing contract, the seller or lessor may elect to treat all receipts under such contracts as gross receipts as and when the payments are actually received. If the seller or lessor transfers his interest in any such contract to a third person, he shall pay the municipal sales tax upon the full sale or leasing con- tract amount. "Gross receipts". for the purpose of the business of buying, selling or promoting the purchase, sale or leasing, as factor, agent, or broker, on a commissioner or fee basis, of any property, service, stock, bond or security, includes only the total commissions or fees derived from the business. F. "Manufacturing" means combining or processing components or materials to increase their value for sale in the ordinary course of business but does not include contracting. G. "Person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, r firm, partnership, joint venture, syndicate or other entity, including the gas, water or electric utility owned or operated by a county, municipality or other political subdivision of the state. H. "Property" means real property or tangible personal property. Tangible personal property includes electri- city. I. "Leasing" means any arrangement whereby, for a consideration, property is employed for or by any person other than the owner of the property. J. "Service" means all activities engaged in for other persons for a consideration, which activities involve primarily the performance of a service as distinguished from selling property. "Service" includes contracting and all materials employed in contracting are to be treated as part of the service. However, sales of materials that will be employed in contracting to persons engaged in contracting are sales of tangible personal property. K. "Tax" means the municipal sales tax. L. "Use" or "using" means use, consumption or storage other than storage for subsequent sale in the ordinary course of business or for use solely outside of the municipality. -3- M. "Municipality" means the Town of Taos. " "Section 3. IMPOSITION. A. There is hereby levied and imposed a municipal sales tax on all retail business and services within the municipality at the rate of one percent (1%) of the gross receipts of all retail businesses and services within the municipality. Gross receipts shall be measured by the amount or volume of business done. B. The tax imposed by this section shall be referred to as the "municipal sales tax. " "Section 4. DATE PAYMENT DUE. The municipal sales tax imposed by this ordinance is to be paid on or before the 20th day of the month following the month in which the taxable event occured. " "Section 5. EXEMPTIONS. The following transactions are exempted from the municipal sales tax imposed by this ordinance : A. Exempted from the municipal sales tax are the receipts of the United States or any agency or instrumentality thereof or the State of New Mexico or any political subdivision thereof. Receipts from the sale of gas, water or electricity by a utility owned or operated by a county, municipality or other political subdivision of the State are not exempted from the municipal sales tax by this subsection. B. Exempted from the municipal sales tax are the receipts of hospitals, infirmaries, or sanitariums and the receipts of nonprofit corporations from the operation of facilities designed and used for providing accommodations for retired elderly persons. C. Exempted from the municipal sales tax are the receipts of employees from wages salaries, commissions or from any other form of remuneration for personal services. D. Exempted from the municipal sales tax are the receipts of growers, producers, trappers or nonprufit marketing associations from selling livestock, live poultry, unprocessed agricultural products, hides or pelts. Persons engaged in the business of buying and selling wool or mohair are producers for purposes of this subsection. -4- 1 Persons engaged in the business of buying and selling livestock on their own account are also producers for the purposes of this subsection. Receipts from selling dairy products at retail are not exempted from the municipal sales tax by this sub- section. E. Exempted from the municipal sales tax are the receipts of any person derived from feeding or pasturing livestock. Receipts derived from penning or handling live- stock prior to the sale shall be considered receipts derived from feeding livestock for the purposes of this subsection. F. Exempted from the municipal sales tax are the receipts of banks, building and loan associations or credit unions from selling or leasing property or service in the regular course of their banking, building and loan associations or credit union functions. G. Exempted from the municipal sales tax are the receipts from selling vehicles on which the tax imposed by Section 64-11-15, New Mexico Statutes Annotated, 1953 Com- pilation, is payable . H. Exempted from the municipal sales tax are the receipts of insurance companies from premiums. I . Exempted from the municipal sales tax are the receipts received as intrrest on money loaned or deposited, as dividends from stocks, bonds or securities or from a sale of stocks, bonds or securities. J. Exempted from the municipal sales tax are the receipts from selling motor fuel or special fuel on which the taxes imposed by Sections 64-26-2 or 64-26-6, New Mexico Statutes Annotated, 1953 Compilation, have been paid and not refunded. K. Exempted from the municipal sales tax are the receipts from the isolated or occasional sale of or leasing of property or service by a person who is neither regularly engaged nor holding himself out as engaged in the business of selling or leasing the same or similar property or service. L. Exempted from the municipal sales tax are the receipts of public, parochial or private nonprofit schools, colleges or universities received from tuition payments, fees, dormitories or dining facilities. -5- M. Exempted from the municipal sales tax are the receipts from selling tangible personal property by any instrumentality of thi armed forces of the United States engaged in resale act:.vities. N. Exempted from municipal sales tax are the receipts from the sale or leasing of oil, natural gas or mineral interests. O. When a privilege tax is imposed by the Oil and Gas Emergency School Tax, the provisions of such act shall apply and determine the full measure of tax liability for the privilege of engaging in the business stated in the Act, and no provisions of the municipal sales tax shall apply to or create a tax liability for such privilege. No provision of the municipal sales tax ordinance shall apply to the storage of oil, natural gas or liquid hydro-carbon, individually or in any combination thereof, or to the use of such products for fuel in the operation of a "production unit" as defined by the Oil and Gas Emergency School Tax Act. P. When a privilege tax is imposed by the Oil and Gas Manufacturers Privilege Tax Act, the provisions or, the Act shall apply and determine the full measure of tax li- ability for the privilege of engaging in the business stated in the Act and no provision of the municipal sales tax ordinance shall apply to or create a tax liability for such privilege. No provision of the municipal sales tax ordinance shall apply to the storage or use of oil, natural gas, or liquid hydro-carbon, individually or any combination thereof, when stored or used by a "Manufacturer" as defined by the Oil and Gas Manufacturer 's Privilage Tax Act. Q. When a privilege tax is imposed by the Resources Excise Tax Act, the provisions of the Act shall apply and determine the full measure of tax liability for the privilege of engaging in the business stated in the Act and no pro- vision of the municipal sales tax shall apply to or create a tax liability for such privilege, except as is provided in Section 8 of the Resources Excise Tax Act. R. Exempted from the provisions of the municipal sales tax are the receipts derived from the use of all natural gas, or liquid hydro-carbon or any combination thereof as a fuel in the pipeline transportation of such pr oduc•�s. -6- S. Exempted from the municipal sales tax are the receipts from dues and registration fees of nonprofit social, fraternal, political, trade, business, labor or professtional organizations. T. No provision of the municipal sales tax ordinance shall apply to or create a tax liability for the privilege of engaging in any business by an insurance company or any agent thereof as provided in Section 58-5-1, New Mexico Statutes Annotated, 1953 Compilation, (being Laws 1925, Chapter 135, Section 27 as amended) . If any conflict exists between any provision of the municipal sales tax ordinance and the provisions of Section 58-5-1, New Mexico Statutes Annotated, 1953 Compilation, (being Laws 1925, Chapter 135, Section 27, as amended) . Section 58-5-1, New Mexico Statutes Annotated, 1953 Compilation, (being Laws 1925, Chapter 135, Section 27, as amended) shall control. " "Section 6. NONTAXABLE TRANSACTION CERTIFICATE. A nontaxable transaction certificate by the buyer or lessee shall be in the possession of the seller or lessor for a nontaxable transaction when regulationas of the New Mexico Bureau of Revenue so require. The nontaxable transaction certificate shall contain information and be in a form prescribed by the New Mexico Bureau of Revenue. Only buyers or lessees who have a registration number or who have applied for a registration number and have not been refused one under Section 72-13-29 (c) , New Mexico Statutes Annotated, 1953 Compilation, shall execute nontaxable trans- action certificates. When the seller or lessor accepts the nontaxable transaction certificate in ge ad faith that the buyer or lessee will employ the pr oper.:y or service trans- ferred in a nontaxable manner, the properly executed non- taxable transaction certificate shall be conclusive evidence that the proceeds from the transaction are not includable in the seller's or lessor's gross receipts. " "Section 7. DEDUCTIONS. In computing the municipal sales tax due: A. Receipts from selling tangible personal property that will become an ingredient or component part of any manufactured product may be deducted from gross receipts if the sale is made to a person engaged in the business of manufacturing who delivers a nontaxable transaction certi- ficate to the seller. B. Receipts from selling tangible personal property for subsequent sale either by itself or in combination with other tangible personal property in the ordinary course of -7- • business may be deducted from gross receipts if the sale is made to a person who delivers a nontaxable transaction certificate to the seller. Sales of materials that will be employed in contracting to persons engaged in contracting are not sales of tangible personal property for subsequent sale for pur- poses of this subsection. C. Receipts from leasing tangible personal property for subsequent leasing in the ordinary course of business may be deducted frcm gross receipts if the lease is made to a person who delivers a nontaxable transaction certificate to the lessor. D. Receipts from selling a service for resale may be deducted from gross receipts if: (1) The sale is made to a person who delivers a nontaxable transaction certificate to the seller ; (2) The value of the particular service is stated separately in the buyer's charge for the subsequent sale of the service; (3) The subsequent sale of the service is a trans- action taxable under the municipal sales tax, and (4) The subsequent sale is in the ordinary course of business. Receipts of persons engaged in contracting from performing contracting work are not receipts from selling a service for resale for purposes of this subsection. S. Fifty percent of the receipts from performing a contracting project may be deducted from gross receipts. F. Receipts from the sale of or leasing of real property, other than the receipts from the sale of or leasing of oil, natural gas, or mineral interest exempted by Section 5(N) of the municipals sales tax may be deducted from gross receipts. No receipts received by hotels, motels, rooming houses, camp grounds, guest ranches, trailer parks or similar facilities from lodgers, guests, roomers or occupants, shall be considered receipts from leasing real property for pur- poses of this subsection. -8- G. Receipts from selling tangible personal property, other than non-fissionable metalliferous mineral ore, to the Unitee States or any agency or instrumentality thereof or the State of New Mexico or any political subdivision thereof may be deducted from gross receipts. Receipts from selling tangible personal property, other than non-fissionable metalliferous mineral ore, to the governing body of any Indian tribe or Indian pueblos for use on Indian reservations or pueblos grants, may be deducted from gross receipts. H. Receipts from transacti ms in interstate commerce may be deducted from gross receipts to the extent that the imposition of the municipal sales tax would be unlawful under the United States Constitution. Receipts from transmitting messages or conversations by telephone, telegraph or radio, other than from one point in this municipality to another point in this municipality, may be deducted from gross receipts. Receipts from trans- porting persons or property under a single contract from one point to another in this municipality V..Ay be deducted from gross receipts when such persons or property, including any special or extra service reasonably necessary in con- nection therewith, is being transported in interstate or foreign commerce. Receipts from transporting for hire persons or property ;.y railroad, motor vehicle, air transportation or -iny other means, from one point within the municipality to another point outside the municipality may be deducted from gross receipts. a. Rk-- :eipts frog;Willing feed for livestock or poultry, seeds, roots, bulbs, plants, fertilizers, insecticides, fungicides, or weedacides applied to land or water for irrigation purposes may be deducted from gross receipts. Receipts of auctioneers from selling livestock or other agricultural products at auction may also be de- ducted from gross receipts. K. Receipts from warehousing grain or other agri- cultural products or from threshing or cleaning agricultural products, including the ginning of cotton, may be deducted from gross receipts. -9- i L. Receipts from selling tangible personal property, other than metalliferous mineral ore, to nonprofit schools, colleges, universities, hospitals, religious or charitable organizations, who employ the tangible personal property in the conduct of their regular educational, hospital, religious or charitable functions may be deducted from gross receipts. ' M. Receipts from selling tangible personal property other than metalliferous mineral ore, to banks, building and loan associations or Credit unions who employ the tangible personal property primarily in their banking, building and loan association or credit union functions may be deducted from gross receipts. N. Fifty percent (50%) of the receipts from selling agricultural implements, farm tractors, airplanes or vehicles that are not registered under the Motor vehicle Code may be deducted from gross receipts. Any deduction allowed under subsection O of this section is to be taken before the deduction allowed by this subsection is computed. 0. Thc* portion of the receipts of a seller that are derived from an allowance granted to a buyer of tangible personal property for a trade-in of tangible personal property of the same type being bought may be deducted from gross receipts. P. Receipts from publishing newspapers or magazines, except from selling advertising space, may be deducted from gross receipts. Receipts from selling magazines at retail amy not be deducted from gross receipts. Q. Receipts from selling newspapers, except from selling advertising space, may be deducted from gross receipts. R. Receipts from selling coal in carload lots may be deducted from gross receipts. S. Receipts from selling chemicals or reagents to any mining, milling or oil company for use in processing ores or oil in mill, smelter or refiner or in acidizing oil wells and from selling chemicals or reagents in lots in excess of eighteen (18) tones may be deducted from gross receipts. -10- r Receipts from selling explosives, blasting powder or dynamite may not be deducted from gross receipts. T. Receipts of any person from selling merchandise to wholesalers for a manufacturer's account, but who does not at any time receive title to, handle or invoice the merchandise may be deducted from gross receipts. U. Refunds and allowances made to buyers or amounts written off the books as an uncollectible debt by a person reporting municipal sales tax on an accrual basis may be deducted from gross receipts. If debts reported uncollectible are subsequently collected, such receipts shall be included in gross receipts in the month of collection. V. The amount of gross receipts tax stated separately on the books of the seller or lessor may be deducted from gross receipts but the amount deducted shall not exceed the amount of gross receipts tax due. W. Receipts of a dealer from furnishing goods or aervi.ces to the purchaser of tangible personal property to fulfill a warrantly obligation of the manufacturer of the property may be deducted from gross receipts. X. Receipts of a corporation for administrative and accounting services performed by it for a wholly owned sub- sidiary corporation upon a nonprofit or cost basis, and receipts from a wholly owned subsidiary for the joint use or sharing of office machines and facilities upon a non- profit or cost basis, may be deducted from gross receipts. Y. Seventy-five percent (75%) of the receipts from originating and servicing loans on real property may be deducted from gross receipts. Z. Receipts from the rental or leasing of vehicles used in the transportation of passengers or property for hire in interstLte commerce under the regulations or authorization of any agency of the United States shall be deducted. " "Section 8. PRESUMPTION OF TAXABILITY. To prevent evasion of the municipal sales tax and to aid in its ad- ministration, it is presumed that all receipts of a person engaging in a retail business or a service are subject to the municipal sales tax. Any person engaged solely in transactions specifically exempt under the provisions of this ordinance shall not be required to register or file a return under the provisions of this ordinance. " -17,- i "Section 9. SEPARATELY STATING THE MUNICIPAL SALES TAX. When the municipal sales tax is stated separately by the sellor or lessor to the buyer or lessee and if the total amount of tax is stated separately on transactions reportable within one reporting period is in excess of the amount of municipal sales otherwise payable on the trans- action on which the tax was stated separately, the excess of tax stated on the transactions within that reporting period shall be included in the gross receipts. " Section 10. UNLAWFUL TO ADVERTISE TAX NOT A PART OF PRICE. It is unlawful for any person to advertise that any tax imposed by the municipal sales tax is not an element of the price of the property or service sold. " Section 11. COST OF ENFORCEMENT. As reasonable compensation for the enforcement and collection of this municipal sales tax, the Bureau of Revenue may deduct an amount not to exceed three percent (3%) of the tax actually collected by the Bureau of Revenue . The Bureau shall remit to the municipality the municipal sales tax collected less the administrative cost aforementioned not later than the twentieth (20th) day of each month following the month in which the tax was collected, which remittance the treasurer of the municipality is hereby directed to deposit to the credit of the general fund of the municipality. " "Section 12. DUTY OF ADMINISTRATION AND ENFORCEMENT. Any municipal sales tax imposed by this ordinance shall be enforced and collected by the Bureau of Revenue pursuant to the provisions of the New Mexico Tax Administration Act, Sections 72-13-13 through 72-13-92, New Mexico Statutes Annotated, 1953 Compilation (being Laws 1965, Chapter 248, Sections 1 through 84) , as it may be amended from time to time. This ordinance shall be enforced and tax collected in the same manner and at the same time as the state gross receipts tax is collected. " "Section 13. DUTY TO DELIVER CERTIFIED COPIES OF ORDINANCE. Upon passage of this ordinance, it shall be the duty of the clerk of the municipality to deliver to the Commissioner of the Bureau of Revenue of the State of New Mexico a certified copy of this ordinance. " "Section 14. SEVERABILITY. The provisions of this ordinance are severable. If zny part or application of any part of this ordinance or the aforementioned New Mexico Tax Administration Act, as it may be amended from time to -12- time, is held invalid, the remainder of its application to other situations or persons shall not be affected." "Section 15. INTERPRETATIONS. For the purpose of administration and enforcement of this ordinance, the Bureau of Revenue shall interpret this ordinance. " "Section 16. PENALTY FOR VIOLATIQN. The provisions r of the aforementioned New Mexico Tax Administration Act, as amended from time to time, shall apply to and govern all persons subject to the tax imposed by this ordinance, except ? that the criminal penalties set forth in Sections 72-13-85 through 72-13-88, New Mexico Statutes Annotated, 1953 Compilation (being Laws 1965, Chapter 248, Sections 73 through 75) are restricted to fines not exceeding Three Hundred ($300.00) dollars or to imprisonment not exceeding ninety (90) days and may only be enforced by suit or pro- secution before a municipal judge of the municipality, and each day and/or instance of violation of this ordinance shall constitute a separate offense. " "Section 17. TAX ADMINISTRATION ACT. Copies of the Tax Administration Act shall be on file in the office of the clerk of the municipality. " "Section 18. REPEALING CLAUSE. All ordinances in conflict with the provisions of this ordinance are hereby repealedf provided, however, that the date of repeal of such ordinances shall coincide with the first date of allowable collection under this ordinance and not until such time. "Section 19. SAVINGS CLAUSE . The municipal sales tax imposed by this ordinance does not apply to any taxable event that occurred prior to the effective date. The payment, collection or enforcement of taxes, the liability for payment of which was incurred by reason of events occurring prior to the effective date of this ordinance, is to be accomplished according to the provisions of the applicable ordinances previously in force in every manner as through this ordinance had not been passed and adopted. " "Section 20. EMERGENCY. This ordinance is hereby declared to be an emergency measure on the grounds of urgent public need. it is therefore to become immediately effective upon publication as provided by law. " : i -13- � y "Section 21. EFFECTIVE DATE. This ordinance shall be effective on .and after January 3, 1968. " PASSED, ADOPTED, SIGNED AND APPROVED THIS 12th day of December, 1967. (SEAL) MAYOR ATTEST: CLERK i -14-