A. An excise tax is imposed on the privilege of engaging in gaming activities in the state. This tax shall be known as the "gaming tax". B. The gaming tax is an amount equal to ten percent of the gross receipts of manufacturer licensees from the sale, lease or other transfer of gaming devices in or into the state, except receipts of a manufacturer from the sale, lease or other transfer to a licensed distributor for subsequent sale or lease may be excluded from gross receipts; ten percent of the gross receipts of distributor licensees from the sale, lease or other transfer of gaming devices in or into the state; ten percent of the net take of a gaming operator licensee that is a nonprofit organization; and twenty-four and eight-tenths percent of the net take of every other gaming operator licensee. For the purposes of this section, "gross receipts" means the total amount of money or the value of other consideration received from selling, leasing or otherwise transferring gaming devices. C. The gaming tax imposed on a licensee is in lieu of all state and local gross receipts taxes on that portion of the licensee's gross receipts attributable to gaming activities. D. The gaming tax is to be paid on or before the fifteenth day of the month following the month in which the taxable event occurs. The gaming tax shall be administered and collected by the taxation and revenue department in cooperation with the board. The provisions of the Tax Administration Act [Chapter 7, Article 1 NMSA 1978] apply to the collection and administration of the tax. E. In addition to the gaming tax, a gaming operator licensee that is a racetrack shall pay: (1) twenty percent of its net take solely to purses in accordance with rules adopted by the state racing commission; and (2) one and two-tenths percent of its net take solely to offset the costs of jockey and exercise rider insurance and to comply with federal and state laws affecting horse racing. F. An amount not to exceed twenty percent of the interest earned on the balance of any fund consisting of money for purses distributed by racetrack gaming operator licensees pursuant to this subsection may be expended for the costs of administering the distributions. The state racing commission is responsible for regulatory oversight of funds withdrawn for exercise rider and jockey insurance and compliance with federal and state laws affecting horse racing. The state racing commission is also responsible for regulatory oversight of the twenty percent and one and two-tenths percent fees funding from gaming. A racetrack gaming operator licensee shall spend no less than one-fourth percent of the net take of its gaming machines to fund or support programs for the treatment and assistance of compulsive gamblers. G. A nonprofit gaming operator licensee shall distribute at least twenty percent of the balance of its net take, after payment of the gaming tax, any income taxes and allowable gaming expenses, for charitable or educational purposes. History: Laws 1997, ch. 190, § 49; 1998, ch. 15, § 1; 1999, ch. 187, § 1; 2001, ch. 256, § 1; 2001, ch. 262, § 3; 2002, ch. 48, § 1; 2005, ch. 350, § 2; 2023, ch. 122, § 1; 2023, ch. 154, § 2. 2023 Multiple Amendments. — Laws 2023, ch. 122, § 1, effective April 4, 2023, and Laws 2023, ch. 154, § 2, effective June 16, 2023, enacted different amendments to this section that can be reconciled. Pursuant to 12-1-8 NMSA 1978, Laws 2023, ch. 154, § 2 as the last act signed by the governor is set out above and incorporates both amendments. The amendments enacted by Laws 2023, ch. 122, § 1 and Laws 2023, ch. 154, § 2 are described below. To view the session laws in their entirety, see the 2023 session laws on NMOneSource.com . The nature of the difference between the amendments is that Laws 2023, ch. 122, § 1, reduced the gaming tax for certain licensees, required racetracks to pay, in addition to twenty percent of their net take allocated to purses, one and two-tenths percent of their net take to pay for the costs of jockey and exercise rider insurance and to reimburse the racetrack operator for the costs to comply with federal and state laws affecting horse racing, established that it is the responsibility of the state racing commission for regulatory oversight of funds withdrawn for exercise rider and jockey insurance, compliance with federal and state laws affecting horse racing and of the twenty percent and one and two-tenths percent fees funding from gaming, and Laws 2023, ch. 154, § 2, changed the net take percentage for a nonprofit organization gaming operator licensee. Laws 2023, ch. 154, § 2, effective June 16, 2023, changed the net take percentage for a nonprofit organization gaming operator licensee; and in Subsection F, after "at least", deleted "sixty" and added "twenty", and after "any income taxes", added "and allowable gaming expenses". Laws 2023, ch. 122, § 1, effective April 4, 2023, reduced the gaming tax for certain licensees, required racetracks to pay, in addition to twenty percent of their net take allocated to purses, one and two-tenths percent of their net take to pay for the costs of jockey and exercise rider insurance and to reimburse the racetrack operator for the costs to comply with federal and state laws affecting horse racing, established that it is the responsibility of the state racing commission for regulatory oversight of funds withdrawn for exercise rider and jockey insurance, compliance with federal and state laws affecting horse racing and of the twenty percent and one and two-tenths percent fees funding from gaming; in Subsection B, deleted "twenty-six" and added "twenty-four and eight tenths"; in Subsection E, Paragraph E(1), after "net take", added "solely", and after "to purses", deleted "to be distributed", and added Paragraph E(2); added new subsection designation "F." and redesignated former Subsection F as Subsection G; and in Subsection F, added "The state racing commission is responsible for regulatory oversight of funds withdrawn for exercise rider and jockey insurance and compliance with federal and state laws affecting horse racing. The state racing commission is also responsible for regulatory oversight of the twenty percent and one and two-tenths percent fees funding from gaming." Temporary provisions. — Laws 2023, ch. 122, § 3 provided that the state racing commission shall review the effectiveness of the amendments to Section 60-2E-47 NMSA 1978 enacted in Section 1 of this act and shall, no earlier than July 1, 2026 and no later than December 1, 2026, provide the conclusions of its review and any legislative recommendation to the interim legislative committees that address taxation and horse racing. The 2005 amendment, effective July 1, 2005, increased the tax rate on the net take of other gaming operator licensees in Subsection B from twenty-five percent to twenty-six percent. The 2002 amendment, effective March 4, 2002, inserted the present second sentence in Subsection E. Laws 2002, ch. 48, § 2 repealed Laws 2001, ch. 256, § 1, effective March 4, 2002. The 2001 amendment, effective June 15, 2001, in Subsection B inserted "ten percent of the net take of a gaming operator licensee that is a nonprofit organization" and inserted "other" preceding "gaming operator licensee". The 1999 amendment, effective June 18, 1999, substituted "rules" for "regulations" in the first sentence in Subsection E and "sixty percent" for "eighty-eight percent" in Subsection F. The 1998 amendment, effective March 5, 1998, added the last sentence in Subsection B; added the first sentence in Subsection D; substituted "its" for "the" in the first sentence in Subsection E; and inserted "its" preceding "net" in Subsection F. New Mexico Horsemen's Association's refusal to transfer gaming funds violates the State Racing Commission's rule. — The Gaming Control Act, NMSA 1978, §§ 60-2E-1 to -62, imposes a gaming tax on the net revenues of gaming operator licensees, including racetracks, from gaming activities, and in addition to the gaming tax, a gaming operator licensee that is a racetrack is required to pay twenty percent of its net take to be distributed in accordance with rules adopted by the state racing commission (commission), and where the commission, in 2022, amended its rule governing a racetrack's distribution of the required twenty percent of the net take, in which the commission removed any responsibility for the accounts containing the gaming funds from the New Mexico horsemen's association (NMHA) and required the racetrack associations to establish and manage the accounts for the deposit of gaming funds, make the necessary distributions and comply with the recordkeeping and reporting requirements, and where the NMHA refused to transfer money from the gaming fund accounts it previously managed to the racetracks for payment of purses at race meets, the NMHA's refusal to transfer the purse money violates the commission's amended rule, because the NMHA no longer has any responsibilities related to the accounts, and has no legal authority to refuse to transfer gaming funds it holds to racetrack associations as required by the Commission's rules. Accounts for the Deposit of Gaming Funds for Purses (6/23/22), Att'y Gen. Adv. Ltr. 2022-03.
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