HOUSE BILL 67

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Jose A. Campos

AN ACT

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR CONSTRUCTION MATERIALS USED IN CERTAIN MISSION TRANSITION PROJECTS; DECLARING AN EMERGENCY.

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

     Section 1. Section 7-9-51 NMSA 1978 (being Laws 1969, Chapter 144, Section 41, as amended) is amended to read:

     "7-9-51. DEDUCTION--GROSS RECEIPTS TAX--SALE OF CONSTRUCTION MATERIAL TO PERSONS ENGAGED IN THE CONSTRUCTION BUSINESS.--

          A. Receipts from selling construction material may be deducted from gross receipts if the sale is made to a person engaged in the construction business who delivers a nontaxable transaction certificate to the seller.

          B. The buyer delivering the nontaxable transaction

certificate must incorporate the construction material as:

                (1) an ingredient or component part of a construction project that is subject to the gross receipts tax upon its completion or upon the completion of the overall construction project of which it is a part;

                (2) an ingredient or component part of a construction project that is subject to the gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed; [or]

                (3) an ingredient or component part of a construction project that is located on the tribal territory of an Indian nation, tribe or pueblo; or

                (4) an ingredient or component part of a construction project that is part of a special operations mission transition project for which receipts from military construction services are deductible pursuant to Section 7-9-106 NMSA 1978."

     Section 2. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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