HOUSE BILL 838

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Jose A. Campos

AN ACT

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR RECEIPTS FROM SERVICES PROVIDED FOR THE OPERATIONALLY RESPONSIVE SPACE PROGRAM.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 7-9-54.2 NMSA 1978 (being Laws 1995, Chapter 183, Section 2, as amended) is amended to read:

     "7-9-54.2. GROSS RECEIPTS--DEDUCTION--SPACEPORT OPERATION--SPACE OPERATIONS--LAUNCHING, OPERATING AND RECOVERING SPACE VEHICLES OR PAYLOADS--PAYLOAD SERVICES--OPERATIONALLY RESPONSIVE SPACE PROGRAM SERVICES.--

          A. Receipts from launching, operating or recovering space vehicles or payloads in New Mexico may be deducted from gross receipts.

          B. Receipts from preparing a payload in New Mexico are deductible from gross receipts.

          C. Receipts from operating a spaceport in

New Mexico are deductible from gross receipts.

          D. Receipts from the provision of research, development, testing and evaluation services for the United States air force operationally responsive space program may be deducted from gross receipts.

          [D.] E. As used in this section:

                (1) "operationally responsive space program" means a program authorized pursuant to 10 U.S.C. 2273a;

                [(1)] (2) "payload" means a system, subsystem or other mechanical structure or material to be conveyed into space that is designed, constructed or intended to perform a function in space;

                [(2)] (3) "space" means any location beyond altitudes of sixty thousand feet above the earth's mean sea level;

                [(3)] (4) "space operations" means the process of commanding and controlling payloads in space; and

                [(4)] (5) "spaceport" means an installation and related facilities used for the launching, landing, operating, recovering, servicing and monitoring of vehicles capable of entering or returning from space.

          [E.] F. Receipts from the sale of tangible personal property that will become an ingredient or component part of a construction project or from performing construction services may not be deducted under this section."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

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