New Mexico Administrative Code
Title 2 - PUBLIC FINANCE
Chapter 105 - LOCAL GOVERNMENT EXPENDITURES
Part 2 - LODGERS' TAX QUARTERLY REPORT
Section 2.105.2.9 - LIMITATION OF PROCEEDS USE

Universal Citation: 2 NM Admin Code 2.105.2.9

Current through Register Vol. 35, No. 18, September 24, 2024

A. The occupancy tax may not exceed five percent of the gross taxable rent.

B. The following portions of occupancy tax proceeds must be used for advertising, publicizing and promoting tourist-related attractions, facilities and events.

(1) Municipalities or counties imposing a tax of no more than two percent must expend one-fourth of the tax proceeds for those purposes.

(2) Municipalities located outside of class A counties and counties not classified as class A counties imposing a tax of more than two percent must expend at least one-half of the proceeds from the first three percent of the tax and one-fourth of the proceeds in excess of three percent for those purposes.

(3) Municipalities located in class A counties and class A counties imposing a tax of more than two percent must expend at least one-half of all tax proceeds for those purposes.

C. Proceeds required to be used to advertise, publicize and promote must be used within two years of the close of the fiscal year in which they were collected and shall not be used for any other purpose.

D. The expenditure requirements of 9.2.2 [now Paragraph 2 of Subsection B of 2.105.9 NMAC] may be reduced, if necessary, to make principal and interest payments on lodgers' tax bonds issued prior to January 1, 1996.

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