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-six 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 twenty percent of its net take to purses to be distributed in accordance with rules adopted by the state racing commission. 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. 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.

F. A nonprofit gaming operator licensee shall distribute at least sixty percent of the balance of its net take, after payment of the gaming tax and any income taxes, 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.

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.