[HISTORY: Adopted by the City Council of the City of Socorro
as indicated in article histories. Amendments noted where applicable.]
[Gross receipts tax authority for the City of Socorro
and all municipalities is outlined in Chapter 7, Taxation, of the
New Mexico State Statutes (NMSA 1978).]
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Table of Enactment Dates
Municipal Local Option Gross Receipts Taxes
(to be updated every time an ordinance is enacted, amended
or repealed)
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MUNICIPALITY: City of Socorro, Socorro County
Tax Period: 1-1-2014 through 6-30-2014
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MUNICIPAL CODE: 25-125
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Type of Tax
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Ordinance Number
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Effective Date
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Dedication
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Sunset or Amendment Date
(if applicable)
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Rate
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Municipal Gross Receipts - 1st 1/4%
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8-78
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July 1979
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General Fund
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0.2500%
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Municipal Gross Receipts - 2nd 1/4%
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8-78
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July 1979
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General Fund
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0.2500%
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Municipal Gross Receipts - 3rd 1/4%
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January 1982
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0.2500%
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Municipal Gross Receipts - 4th 1/4%
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July 1985
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General Fund
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0.2500%
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Municipal Gross Receipts - 5th 1/4%
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July 1988
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General Fund
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0.2500%
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Municipal Environmental Gross Receipts 1/16%
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90-01
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January 1991
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Environmental Services
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0.0625%
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Municipal Infrastructure Gross Receipts - 1st 1/16%
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01-09-17
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July 2002
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Municipal Infrastructure Projects
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0.0625%
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Municipal Infrastructure Gross Receipts - 2nd 1/16%
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01-09-17
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July 2002
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Municipal Infrastructure Projects
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0.0625%
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Municipal Infrastructure Gross Receipts - 3rd 1/16%
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Municipal Infrastructure Gross Receipts - 4th 1/16%
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Unrestricted Municipal Gross Receipts
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20-03-02
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January 2021
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General Fund Expenses Focusing on Economic Development
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0.2500%
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Municipal Gross Receipts (3-14-2022)
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Not Provided
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General Fund
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1.6875%
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Municipal Capital Outlay Gross Receipts
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Municipal Quality of Life Gross Receipts
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Municipal Regional Spaceport Gross Receipts
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Municipal Higher Education Gross Receipts
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Supplemental Municipal Gross Receipts - 1%
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Total Municipal Gross Receipts Tax Rate
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1.6875%
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County Gross Receipts Tax Rate
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1.0000%
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State Gross Receipts Tax Rate - 5.0000%
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5.0000%
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Total Combined Rate of all Ordinances Including County and State
Gross Receipts Tax Rates
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7.6875%
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[Adopted 5-20-2019 by Ord. No. 19-04-15[1]]
[1]
Editor's Note: This ordinance also repealed former Art. II,
Lodgers Tax, adopted 11-1-1993 by Ord. No. LOT-10-93-01 and superseded
8-5-1996 by Ord. No. LT-96-02 (Ch. 6, Art. 4, of the 1977 Code), as
amended, and former Art. III, Convention Center Fee, adopted 3-16-2015
by Ord. No. 15-02-17a.
This article may be cited as the "Lodgers' Tax Ordinance."
The purpose of this article is to impose a tax which will be borne by persons using commercial lodging accommodations, which tax will provide revenues for the purpose of advertising, publicizing and promoting facilities, tourist attractions, and acquisition, construction and maintenance of tourist attractions and recreational facilities, and for all other legally permissible purposes including those purposes as authorized in § 213-17 of this article.
As used in this article:
The office, within the City of Socorro Finance Department,
that is responsible for issuing business registrations.
The Lodgers' Occupancy Tax Advisory Board established herein
to make recommendations for advertising, publicizing and promoting
tourist-related attractions, facilities and events to the governing
body, keep minutes of its proceedings and submit its recommendations,
correspondence and other pertinent documents to the governing body.
The City of Socorro.
The office, within the City of Socorro Finance Department,
where all monies owed to the City are collected and deposited. All
lodgers' tax remittance will be collected and deposited in the cashier's
office.
The City Clerk of Socorro, New Mexico.
The City Treasurer of Socorro, New Mexico.
The two-percent increment imposed by the City under the Civic
and Convention Center Funding Act, NMSA 1978, §§ 5-14-1
to 5-14-15.
The total amount of rent paid for lodging, not including
the state gross receipts tax or local sales taxes.
A specified unit of the total percent of occupancy tax or
convention center fee imposed where the unit is derived by dividing
the percent tax imposed into separate parts of 1% or portions of 1%.
Shall be used to collectively refer to the occupancy tax
and convention center fee.
The transaction of furnishing rooms or other accommodations
by a vendor to a vendee who for a rent uses, possesses or has the
right to use or possess any room or rooms or other units of accommodation
in or at a taxable premises.
The rooms or other accommodations furnished by a vendor to
a vendee by a taxable service of lodgings.
Tax on lodging authorized by the Lodgers' Tax Act, NMSA 1978,
§§ 3-38-13 to 3-38-24.
A corporation, firm, other body corporate, partnership, association
or individual, includes a property management company, includes an
executor, administrator, trustee, receiver or other representative
appointed according to law and acting in a representative capacity,
but does not include the United States of America, the state of New
Mexico, any corporation, department, instrumentality or agency of
the federal government or the state government, or any political subdivision
of the state.
The consideration received by a vendor in money, credits,
property or other consideration valued in money for lodgings subject
to a lodgers' tax authorized in the Lodgers' Tax Act and/or the Civic
and Convention Center Funding Act.
A hotel, apartment, apartment hotel, apartment house, condominium,
townhome, casita, time-share and fractional-share lodge, lodging house,
rooming house, motor hotel, bed-and-breakfast, guesthouse, guest ranch,
ranch resort, guest resort, mobile home, motor court, auto court,
auto camp, trailer court, trailer camp, trailer park, tourist camp,
cabin, short-term rental unit or other premises for lodging.
A person who travels for the purpose of business, pleasure
or culture to the City of Socorro.
Events that are planned for, promoted to and attended by
tourists.
Facilities and attractions that are intended to be used by
or visited by tourists.
Transportation systems that provide transportation for tourists
to and from tourist-related facilities, attractions and events.
A natural person to whom lodgings are furnished in the exercise
of the taxable service of lodging.
A person furnishing lodgings in the exercise of the taxable
service of lodging.
There is imposed an occupancy tax of 5% and a convention center
fee of 2% for a total of 7% of gross taxable rent for lodging at a
taxable premises within the City of Socorro paid to vendors.
Every vendor who is providing lodging within the City of Socorro
is exercising a taxable privilege. The vendor must provide documentation
as to any applicable exception under this article, if requested by
the City.
A.
No vendor shall engage in the business of providing lodging in the
City of Socorro who has first not obtained a business registration
as provided in this section;
B.
Applicants for a vendor's business registration shall submit an application
to the Accounts Receivable Unit stating:
(1)
The name of the vendor, including identification of any person, as
defined in this article, who owns or operates or both owns and operates
a place of lodging and the name or trade names under which the vendor
proposes to do business and the post office address thereof;
(2)
A description of the facilities, including the physical address(es),
the number of rooms and the usual schedule of rates;
(3)
A description of other facilities provided by the vendor or others
to users of the lodgings, such as restaurant, bar, cleaning, laundry,
courtesy car, stenographer, tailor or others, and a statement identifying
the license/registration issued, to whom issued, the authority issuing,
and the period for which issued. If applicable, also the identification
number provided by the Taxation and Revenue Department of the state
of New Mexico;
(4)
The nature of the business practices of the vendor and to what extent,
if any, his business is exempt from the lodgers' tax;
(5)
State of New Mexico gross receipts tax number (C.R.S. ID No.); and
(6)
Other information reasonably necessary to effect a determination
of eligibility for such license;
C.
The Accounts Receivable Unit shall review applications for registration
within 10 days of receipt thereof and grant the registration in due
course if the applicant is doing business subject to the lodgers'
tax;
D.
An applicant who is dissatisfied with the decision of the Accounts
Receivable Unit may appeal the decision to the City Clerk by written
notice to the City Clerk of such appeal to be made within 15 days
of the date of the decision of the Accounts Receivable Unit on the
application. The matter shall be referred to the City Clerk for hearing
in the usual course of business. The decision of the City Clerk shall
be expressed in writing and be communicated in the same manner as
the decision of the Accounts Receivable Unit is transmitted. The action
of the City Clerk shall be deemed final;
E.
If the City Clerk finds for the applicant, the Accounts Receivable
Unit shall issue the registration or other notice conforming to the
decision made by the City Clerk.
Upon any change in or transfer of ownership of lodging facilities,
the vendor is required to notify the City of Socorro in writing:
The occupancy tax or the convention center fee shall not apply
to any portion of the gross taxable rent:
A.
If a vendee:
(1)
Has been a permanent resident of the taxable premises for a period
of at least 30 consecutive days as evidenced by a lease or other long-term
lodging documentation; or
(2)
Enters into or has entered into a written agreement for lodgings
at the taxable premises for a period of at least 30 consecutive days;
B.
If the rent paid by the vendee is less than $2 a day;
C.
To lodging accommodations at institutions of the federal government,
the state or any political subdivision thereof;
D.
To lodging accommodations at religious, charitable, educational or
philanthropic institutions, including, without limitation, such accommodations
at summer camps operated by such institutions;
E.
To clinics, hospitals or other medical facilities;
F.
To privately owned and operated convalescent homes, or homes for
the aged, infirm, indigent or chronically ill;
G.
If the vendor does not offer at least three rooms within or attached
to a taxable premises for lodging, or at least three other premises
providing lodging facilities, regardless of the number of rooms available
at each taxable premises, or a combination of these within the City.
A.
Every vendor providing lodgings shall collect the tax thereon on
behalf of the City of Socorro and shall act as a trustee therefor.
B.
The tax shall be collected from vendees and shall be charged separately
from the rent fixed by the vendor for the lodgings.
C.
Each vendor registered under this article shall be liable to the
City of Socorro for the tax provided herein on the rent paid for lodging
at his respective place of business.
D.
Failure of the vendor to collect the tax is not cause for the City
to forgive the tax due and owed by the vendor.
E.
Each vendor shall make a report by the 25th day of each month, on
forms provided by the City Cashiers Office, of the receipts for lodging
in the preceding calendar month, and shall submit the proceeds of
the lodgers' tax to the City of Socorro and include sufficient information
to enable the City to audit the reports and shall be verified on oath
by the vendor.
F.
Lodgers' tax payments are due (postmarked by the United States post
office or other such provider or hand delivered to and receipted by
the City Cashiers Office) by the 25th day of each month for receipts
of lodging in the preceding calendar month. The City, however, is
not obligated to retain all envelopes, as it is the responsibility
of the vendor to ensure timely payments;
G.
Upon application approved, in writing, by the City, a vendor may
report and submit payments on a quarterly basis, which are due on
the 25th day of the month after the end of the quarter for the receipts
of lodging in the preceding calendar quarter, using separate reporting
forms for each month in the quarter;
Vendors shall maintain adequate records of facilities subject
to the tax and of proceeds received for the use thereof. Such records
shall be maintained in Socorro, New Mexico, and shall be open to the
inspection of the City during reasonable hours and shall be retained
for three years.
A.
Every vendor is liable for the payment of the proceeds of any occupancy
tax and convention center fee that the vendor failed to remit to the
city, whether due to the vendor's failure to collect the tax or otherwise.
Vendors shall be liable for the tax, plus a civil penalty equal to
the greater of 10% of the amount not remitted or $100. The City shall
give the delinquent vendor written notice of the delinquency, which
notice shall be mailed either to the vendor's local or business address,
informing the lodging facility of the delinquency and penalty due.
Failure to receive the notice does not abate the delinquency and penalty
fee.
B.
If payment is not received within 15 days of the date due, interest
will accrue at the rate of 1% per month or prorated for a partial
month on the unpaid balance of the tax and penalty.
C.
If payments are not received within 15 days of the mailing of the
notice, the City may bring an action in law or equity in the district
court for the collection of any amounts due, including, without limitation,
penalties thereon, interest on the unpaid principal at a rate not
exceeding 1% a month. If the City attempts collection through an attorney
or the City Attorney for any purpose with regard to this article,
the vendor shall be liable to the City for all costs, fees paid to
the attorney or City attorney, and all other expenses incurred in
connection therewith.
D.
The occupancy tax and convention center fee imposed by the City of
Socorro constitutes a lien in favor of the City upon the personal
and real property of the property owner of the lodgings. The lien
may be enforced as provided in NMSA 1978, §§ 3-36-1
through 3-36-7. Priority of the lien shall be determined from the
date of filing.·
E.
The payments due under this article, together with all penalties,
fees, interest and other charges prescribed, shall become a personal
liability of the owner of the property. In addition to collection
through foreclosure of the lien, collection may be enforced on such
personal liability by resort to any other legal procedure available
for the enforcement of personal liabilities.
F.
Under process or order of court, no person shall sell the property
of a vendor without first ascertaining from the City Treasurer the
amount of an occupancy tax or convention center fee due the City.
Any occupancy tax or convention center fee due the City shall be paid
from the proceeds of the sale before payment is made to any judgment
creditor or any other person with a claim on the proceeds of the sale.
A.
Any person who violates the provisions of the lodgers' tax ordinance
for a failure to pay the tax, to remit proceeds thereof to the City
or to properly account for any lodging and tax proceeds pertaining
thereto shall be guilty of a petty misdemeanor and, upon conviction,
shall be fined in an amount not to exceed $500 and/or imprisonment
not to exceed 90 days, or both.
B.
The City may bring an action in the district court for collection
of amounts due, including, without limitation, penalties on the amounts
due on the unpaid principal at a rate not exceeding 1% per month,
the costs of collection and reasonable attorney fees incurred in connection
with the court action to collect the unpaid tax.
A.
If any person believes he has made payment of any lodgers' tax in
excess of that for which he was liable, he may claim a refund thereof
by directing to the City Treasurer, no later than 90 days from the
date payment was made, a written claim for refund accompanied by a
restated lodgers' tax reporting form for that period. Every claim
for refund shall state the nature of the person's complaint and the
affirmative relief requested. The City Treasurer shall allow the claim
in whole or in part or may deny it.
B.
A refund may be made by the City unilaterally to a vendor in consideration
of documentation presented in an audit report.
A.
The City Treasurer may conduct random audit(s) to verify the amount
of gross rent subject to the occupancy tax and to ensure that the
full amount of occupancy tax on the rent is collected from each vendor
thus audited. The City Treasurer may also conduct audits as necessary
to verify compliance with this article.
B.
The audit(s) may be performed by the City Treasurer or by any other
designee. A copy of the audit shall be submitted to the City's Finance
committee and the advisory board for review. A copy of the audit(s)
shall be filed annually with the Local Government Division of the
Department of Finance and Administration.
It is unlawful for any employee of the City of Socorro to reveal
to any individual other than another employee or elected official
of the City of Socorro any information contained in the return or
audit of any taxpayer, including vendors subject to the Lodgers' Tax
Act, except:
A.
To a court of competent jurisdiction in response to an order thereof
in an action relating to taxes to which the City of Socorro is a party
and in which information sought is material to the inquiry;
B.
To the taxpayer himself or to his authorized representative;
C.
In such manner, for statistical purposes, the information revealed
is not identified as applicable to any individual taxpayer; and
D.
For the identity of vendors subject to the Lodgers' Tax Act.
The governing body shall administer the lodgers' tax monies collected. The mayor shall appoint an advisory board of five members; two of whom shall be owners or operators of lodgings subject to the tax within the municipality, two of whom are owners or operators of industries within the municipality that primarily provide services or products to tourists and one member who is a resident of the municipality and represents the general public. The members of the board shall serve at the pleasure of the mayor. The board shall advise the governing body on expenditures of funds authorized under § 213-17A, of this article for advertising, publicizing and promoting tourist attractions and facilities in the municipality and surrounding areas. The recommendations for the expenditures of funds shall be submitted to the governing body by the board. The budget approved by the governing body shall be furnished to the advisory board.
The proceeds of the occupancy tax and convention center fee
shall be used to defray costs as follows:
A.
Not less than 1/2 of the proceeds derived from the first three-percent
increments and not less than 1/4 of the proceeds of the tax from the
next two-percent increments (collectively, the first five increments,
also referred to as the "occupancy tax") in excess of three-percent
increments shall be used for the purpose of advertising, publicizing
and promoting tourist-related attractions, facilities and events;
B.
Funds collected for use under Subsection A herein must be spent within two years of the close of the fiscal year collected.
C.
The proceeds from the occupancy tax in excess of the amount required by Subsection A herein to be used for advertising, publicizing and promoting tourist-related attractions, facilities and events may be used for:
(1)
Collecting and administering the tax;
(2)
Audits;
(3)
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 or attractions or transportation systems
of the municipality or the county in which the municipality is located;
(4)
Advertising, publicizing and promoting tourist-related attractions,
facilities and events of the municipality or county and tourist facilities
or attractions within the area;
(5)
Providing police and fire protection and sanitation service for tourist-related
events, facilities and attractions located in the respective municipality
or county;
(6)
Principal and interest of revenue bonds issued as authorized by NMSA
1978, §§ 3-38-23 or 3-38- 24; or
(7)
Any combination of the foregoing purposes or transactions stated
in this article, but for no other municipal or county purpose.
D.
Proceeds of the sixth one-percent and the seventh one-percent increments
of the tax (also referred to as the "convention center fee" shall
be used by the City for the following:
(1)
The design, construction, equipping, furnishing, landscaping and
other costs associated with the development of a civic and convention
center located within the City;
(2)
Payments of principal, interest or prior redemption premiums due
in connection with and any other charges pertaining to revenue bonds
authorized by the Civic and Convention Center Fund Act, NMSA 1978,
§§ 5-14-1 to 5-14-15, including payments into a sinking
fund or reserve fund required by the revenue bond ordinance; and
(3)
Costs of collecting and otherwise administering the tax, provided that administration costs shall not be paid if there are current payments due pursuant to Subsection D(2) of this section and that no more than 10% of the convention center fee revenue collected in any fiscal year shall be used to pay administration costs.
(4)
Operation costs of the civic and convention center, provided that no such costs shall be paid if there are current payments due pursuant to Subsection D(2) of this section; and
(5)
Payments into a capital reserve fund established for the future payment
for capital maintenance and improvements and equipment replacement
costs of the civic and convention center, provided that:
E.
The sixth one-percent and the seventh one-percent increments of the
lodgers' tax (also referred to as a "convention center fee") shall
be imposed only for the period necessary for payment of principal
and interest on revenue bonds issued to accomplish the purpose for
which the revenue is dedicated, but the period shall not exceed 30
years from the date of the ordinance imposing the fee.
F.
The governing body may decrease the rate of the convention center
fee if the following are met:
(1)
All required payments have been made pursuant to Subsection D of this section and the required levels of and estimated payments from any reserve fund, sinking fund or capital reserve fund can be sustained at a decreased rate;
(2)
The decreased fee will not otherwise directly or indirectly impair
outstanding revenue bonds issued under NMSA 1978, § 5-14-13;
and
(3)
The Local Government Division of the Department of Finance and Administration
of the State of New Mexico finds that the requirements of Subsection
H(1) and (2) of this section have been satisfied and otherwise approves
the fee decrease.
The governing body may contract for the management of programs
and activities for advertising, publicizing and promoting tourist-related
attractions, facilities and events. The contractor shall be required
to maintain the funds from the City in a separate account, not co-mingled
with any other money, maintain complete and accurate financial records
of each expenditure, and make such records available for inspection
upon request by the City. Subcontractors shall be subject to the same
terms and conditions. Occupancy tax revenue may be spent for day-to-day
operations, supplies, salaries, office rental, travel expenses and
other administrative costs if incurred directly for the purpose of
advertising, publicizing and promoting tourist-related attractions,
facilities and events. Quarterly reports of expenditures made for
contracted services shall be made to the governing body and the advisory
board.
A report shall be made quarterly to the Local Government Division
of the State Department of Finance and Administration of expenditure
of lodgers' tax. A copy shall be submitted to the advisory board.
If any subsection, sentence, clause, phrase or portion of this
article is for any reason held invalid or unconstitutional by any
court of competent jurisdiction, such portion shall be deemed a separate,
distinct and independent provision and such holding shall not affect
the validity of the remaining portions of this article.
Ordinance No. LOT-10-93-01 and Ordinance No. 15-02-17a are hereby
repealed upon the full passage of the foregoing article.
