HOUSE BILL 368

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Randal S. Crowder

AN ACT

RELATING TO TAXATION; PROVIDING AN EXEMPTION FROM GROSS RECEIPTS FOR THE SALE OF FOOD FROM VENDING MACHINES.

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] EXEMPTION--GROSS RECEIPTS--FOOD FROM VENDING MACHINES.--

          A. Exempt from payment of the gross receipts tax are receipts from the sale of food, as defined by the federal supplemental nutrition assistance program, 7 USC 2012, from a coin-operated vending machine owned by a resident New Mexico business that has a total gross annual revenue of less than two million dollars ($2,000,000).

          B. As used in this section, a "resident New Mexico business" means a business that is licensed to do business in this state and that files an affidavit with the department certifying that:

                (1) the business has paid property taxes or rent on real property in the state and paid at least one other tax administered by the state in each of the three years immediately preceding the submission of the affidavit;

                (2) if the business is a new business, the owner or majority of owners has paid property taxes or rent on real property in the state and has paid at least one other tax administered by the state in each of the three years immediately preceding the submission of the affidavit; or

                (3) if the business is a relocated business, at least eighty percent of the total personnel of the business in the year immediately preceding the submission of the affidavit were residents of the state and that, prior to the submission of the affidavit, the business either leased real property for ten years or purchased real property greater than one hundred thousand dollars ($100,000) in value in the state."

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