HOUSE BILL 487
47th legislature - STATE OF NEW MEXICO - second session, 2006
INTRODUCED BY
Danice Picraux
AN ACT
RELATING TO TAXATION; PROVIDING FOR PAYMENT OF AN ESTATE TAX OWED IN THE FORM OF ONE OR MORE WORKS OF ART TO ANY STATE MUSEUM, MONUMENT OR CULTURAL CENTER PURSUANT TO THE ART ACCEPTANCE ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-7-16 NMSA 1978 (being Laws 1983, Chapter 209, Section 2, as amended) is amended to read:
"7-7-16. DEFINITIONS.--As used in the Art Acceptance Act:
A. "board" means the governing board of [regents of the museum of New Mexico] a facility;
B. "decedent" means the deceased individual;
C. ["division" or] "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;
D. ["museum" means the museum of New Mexico] "facility" means a state museum, monument or cultural center;
E. "personal representative" means the executor or administrator of a decedent or, if no executor or administrator is appointed, qualified and acting, any person who has possession of any property of the decedent; and
F. "work of art" includes any painting, drawing, print, photograph, sculpture, carving, textile, basketry, artifact, natural specimen, rare book, authors' papers, objects of historical or technical interest or other article of intrinsic cultural value."
Section 2. Section 7-7-18 NMSA 1978 (being Laws 1983, Chapter 209, Section 4) is amended to read:
"7-7-18. PROCEDURE FOR PAYMENT IN WORKS OF ART.--
A. The personal representative desiring to pay all or part of an estate tax owed the state in the form of one or more works of art shall first obtain an appraisal of the work acceptable to the federal internal revenue service and shall then notify the [museum] facility director in writing of the desire to offer the work to the [museum] facility. The board shall, within a reasonable period of time and upon the recommendation of the [museum] facility director, notify the personal representative and the [division] department in writing as to whether in the judgment of the board it would be advantageous to the state to accept the one or more works of art as payment or partial payment for the estate tax. The board's decision shall be final and not appealable.
B. Acceptance of a work of art shall be deemed advantageous to the state if its acceptance meets the following criteria:
(1) it encourages growth of the [museum's] facility's collections by the addition of significant and original works of art;
(2) it furthers the preservation and understanding of the arts traditions [which exist in] and cultural history of New Mexico;
(3) it furthers the appreciation of arts and cultures by the people of New Mexico; or
(4) it is compatible with the standards and [collections] collecting policies of the [museum] facility."
Section 3. Section 7-7-19 NMSA 1978 (being Laws 1983, Chapter 209, Section 5) is amended to read:
"7-7-19. AGREEMENT ON VALUATION.--
A. If the board finds that it would be advantageous for the state to accept payment in one or more works of art as payment or partial payment for the estate tax, the personal representative shall, as a condition of state acceptance of this method of payment, forward a copy of the proposed valuation to the [division] department. The [division] department shall have forty-five days from the date of the notification of the proposed valuation to object to that valuation.
B. If the [division] department objects to the proposed valuation, it shall set forth the objection in writing and forward it to the personal representative and provide a copy to the board. The personal representative may take into account the [division's] department's objections and submit a new valuation for the [division's] department's approval. If the [division] department rejects the new valuation within forty-five days of its submission, the state shall be deemed not to accept the proposed method of payment in works of art.
C. If the [division] department does not object to a submitted valuation of a work of art within forty-five days of its submission, the state shall be deemed to have accepted the work of art for the [museum] facility's collection as complete or partial payment of the estate tax owed and the board shall assume title to that work of art as soon as practicable."
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2006.
- 4 -