SENATE BILL 3

49th legislature - STATE OF NEW MEXICO - second special session, 2010

INTRODUCED BY

Dede Feldman

AN ACT

RELATING TO TAXATION; CHANGING THE DEFINITION OF "FOOD" FOR PURPOSES OF THE GROSS RECEIPTS TAX DEDUCTION ON FOOD; USING STREAMLINED SALES TAX DEFINITIONS.

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

     Section 1. Section 7-9-92 NMSA 1978 (being Laws 2004, Chapter 116, Section 5) is amended to read:

     "7-9-92. DEDUCTION--GROSS RECEIPTS--SALE OF FOOD AND FOOD INGREDIENTS AT RETAIL FOOD STORE.--

          A. Receipts from the sale of food and food ingredients at a retail food store that are not exempt from gross receipts taxation and are not deductible pursuant to another provision of the Gross Receipts and Compensating Tax Act may be deducted from gross receipts. The deduction provided by this section shall be separately stated by the taxpayer.

          B. For the purposes of this section:

                [(1) "food" means any food or food product for home consumption that meets the definition of food in 7 USCA 2012(g)(1) for purposes of the federal food stamp program; and]

                (1) "alcoholic beverage" means a beverage that is suitable for human consumption and that contains one-half percent or more of alcohol by volume;

                (2) "candy" means a preparation made of sugar, honey or other natural or artificial sweetener in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops or pieces for which refrigeration is not required; but "candy" does not mean any preparation containing flour;

                (3) "food and food ingredients" means substances, whether in liquid, concentrated, solid, frozen, dried or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value; but "food and food ingredients" does not include alcoholic beverages, tobacco, candy or soft drinks;

                [(2)] (4) "retail food store" means an establishment that sells food and food ingredients for home preparation and consumption and that meets the definition of retail food store in 7 USCA 2012[(k)](p)(1) for purposes of the federal [food stamp] supplemental nutrition assistance program, whether or not the establishment participates in the [food stamp] supplemental nutrition assistance program;

                (5) "soft drink" means nonalcoholic beverages that contain natural or artificial sweeteners; but "soft drink" does not include a beverage that contains milk or milk products, soy, rice or similar milk substitutes or greater than fifty percent vegetable or fruit juice by volume; and

                (6) "tobacco" means cigarettes, cigars, chewing or pipe tobacco or any other item that contains tobacco."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.

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