SENATE BILL 1

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

INTRODUCED BY

Dede Feldman

AN ACT

RELATING TO TAXATION; MAKING REVENUE FROM CERTAIN UNTAXED INSURANCE ADMINISTRATIVE SERVICES SUBJECT TO THE GROSS RECEIPTS TAX; AMENDING A SECTION OF THE NEW MEXICO INSURANCE CODE.

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

     Section 1. Section 7-9-24 NMSA 1978 (being Laws 1969, Chapter 144, Section 17, as amended) is amended to read:

     "7-9-24. EXEMPTION--GROSS RECEIPTS TAX--INSURANCE COMPANIES--BAIL BONDS.--Exempted from the gross receipts tax are:

          A. the receipts of insurance companies or any agent thereof from premiums; provided that this exemption does not apply to receipts from administrative services only contracts; and

          B. any consideration received by a property bondsman, as that person is defined in Section 59A-51-2 NMSA 1978, as security or surety for a bail bond in connection with a judicial proceeding."

     Section 2. Section 59A-6-6 NMSA 1978 (being Laws 1984, Chapter 127, Section 106, as amended) is amended to read:

     "59A-6-6. PREEMPTION AND IN LIEU PROVISION.--

          A. The state government of New Mexico preempts the field of taxation of insurers, nonprofit health care plans, health maintenance organizations, prepaid dental plans, prearranged funeral plans and insurance agents and solicitors as such, and payment of the taxes, licenses and fees provided for in the Insurance Code shall be in lieu of all other taxes, licenses and fees [of every kind now or hereafter] imposed by this state or any political subdivision thereof on any of the foregoing specified entities, [excepting the regular state, county and city taxes on property located in New Mexico excepting the] except:

                (1) property taxes imposed pursuant to the Property Tax Code;

                (2) gross receipts taxes and local option gross receipts taxes on receipts of insurers for administrative services only contracts; and

                (3) income tax on agents and solicitors.

          B. As used in this section, "agent" does not include insurance adjusters.

          C. No provision of law enacted after January 1, 1985 shall be deemed to modify this provision except by express reference to this section."

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