CS/HB 159 GAMING EXPENSES CALCULATION

Rep Martin R Zamora

Actions: [2] HCEDC/HTRC-HCEDC [4] DNP-CS/DP-HTRC

Scheduled: Not Scheduled

 House Bill 159 (HB 149) This legislation in the state of New Mexico, is related to gaming and introduces amendments to Section 60-2E-47 NMSA 1978.  

 House Bill 159 (HB 159) This legislation is Imposing an excise tax, known as the "gaming tax," on gaming activities in the state, with specific percentages based on the type of licensee (manufacturer, distributor, nonprofit gaming operator, or other gaming operator).
•	The gaming tax is in lieu of state and local gross receipts taxes on the portion of gross receipts attributable to gaming activities. 
•	Payment of the gaming tax is required by the fifteenth day of the month following the month in which the taxable event occurs. 
•	Racetrack gaming operator licensees are subject to additional payments related to purses, insurance costs for jockeys and exercise riders, and compliance with relevant laws affecting horse racing.  
•	Provisions for the use of interest earned on funds for purses, with regulatory oversight by the state racing commission.  
•	Nonprofit gaming operator licensees are required to distribute at least twenty percent of the balance of their net take for charitable or educational purposes.
The legislation repeals specific sections of Laws 2023, Chapter 122, Section 2 and 4.  The effective date of these provisions is July 1, 2024.

 

 Committee Substitute January 29, 2024, in HCEDC

HCEDCcs/HB 159:  This legislative proposal in the state of New Mexico regarding gaming taxes and regulations. Section 1: Amendments to Section 60-2E-47 NMSA 1978
•	Clarifies that the gaming tax is imposed on the privilege of engaging in gaming activities in the state.
•	Specifies the percentages of the gaming tax for different types of licensees (manufacturer, distributor, nonprofit gaming operator, and others).
•	Defines "gross receipts" as the total amount of money or the value of other consideration received from selling, leasing, or otherwise transferring gaming devices.
•	Establishes that the gaming tax paid by licensees is in lieu of all state and local gross receipts taxes on the portion of gross receipts attributable to gaming activities.
•	Outlines the payment deadline for the gaming tax and designates the taxation and revenue department, in cooperation with the board, for tax administration and collection.
•	Introduces additional fees for racetrack gaming operator licensees, including percentages of the net take for purses and to offset insurance costs.
•	Specifies the use of funds for administrative costs related to purse distributions and requires a minimum spending by racetrack gaming operator licensees on programs for compulsive gamblers.
•	Sets forth distribution requirements for nonprofit gaming operator licensees for charitable or educational purposes.

Section 2: Amendments to Section 60-2E-47 NMSA 1978 (Effective July 1, 2027)
•	Adjusts the percentages of the gaming tax for different types of licensees.
•	Revises the distribution requirements for nonprofit gaming operator licensees to allocate a minimum of twenty percent of the net take for charitable or educational purposes.

Section 3: Effective Date
•	Specifies that the effective date of the provisions outlined in the act is July 1, 2024.