SENATE BILL 232

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Gerald Ortiz y Pino

AN ACT

RELATING TO TAXATION; IMPOSING THE GROSS RECEIPTS TAX ON CARBONATED BEVERAGES BY EXCLUDING CARBONATED BEVERAGES FROM THE DEFINITION OF "FOOD" IN THE DEDUCTION FROM GROSS RECEIPTS FOR THE SALE OF FOOD AT A RETAIL FOOD STORE.

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 AT RETAIL FOOD STORE.--

          A. Receipts from the sale of food 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)] 2012(k)(1) for purposes of the federal [food stamp] supplemental nutrition assistance program, except that "food" does not include carbonated beverages; and

                (2) "retail food store" means an establishment that sells food for home preparation and consumption and that meets the definition of retail food store in 7 USCA [2012(k)(1)] 2012(o)(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."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.

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