HOUSE BILL 584

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

George Dodge, Jr.

AN ACT

RELATING TO TAXATION; PROVIDING A DEDUCTION FROM GROSS RECEIPTS PAID FOR SPECIAL FUEL THAT IS DYED.

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

     SECTION 1. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--SPECIAL FUEL--DYED.--

          A. Receipts from selling special fuel dyed according to federal regulations may be deducted from gross receipts if the deduction from the special fuel excise tax pursuant to Section 7-16A-10 NMSA 1978 is claimed.

          B. The purpose of the deduction provided in this section is to encourage agricultural businesses to locate in New Mexico and to reduce the tax burden, including reducing pyramiding, on the dyed special fuel that is primarily used in agriculture, where it is used as a fuel for irrigation pumps to produce crops that will ultimately be subject to gross receipts tax.

          C. The department shall annually report to the revenue stabilization and tax policy committee the aggregate amount of deductions taken pursuant to this section, the number of taxpayers claiming the deduction and any other information that is necessary to determine that the deduction is performing the purpose for which it is enacted.

          D. A taxpayer deducting gross receipts pursuant to this section shall report the amount deducted separately for the deduction provided in this section and attribute the amount of the deduction to the appropriate authorization provided in this section in a manner required by the department that facilitates the evaluation by the legislature of the benefit to the state of the deduction."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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