HOUSE BILL 238

53rd legislature - STATE OF NEW MEXICO - second session, 2018

INTRODUCED BY

Carl Trujillo

 

 

 

 

 

AN ACT

RELATING TO TAXATION; PROVIDING A LIMITED-PERIOD DEDUCTION FROM GROSS RECEIPTS FOR OUTDOOR WATER CONSERVATION PRODUCTS; DECLARING AN EMERGENCY.

 

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 TAX--SALES OF WATER-SAVING TANGIBLE PERSONAL PROPERTY--LIMITED PERIOD.--

          A. Receipts from the sale at retail of water-saving

tangible personal property may be deducted from gross receipts

if the sale occurs during the period beginning at midnight on

March 1 and ending at midnight on March 8.

          B. The purpose of the deduction provided by this

section is to mitigate the effects of drought in New Mexico by

creating an incentive for private property owners to reduce their outdoor water consumption through the use of products

designed to decrease water waste.

          C. A taxpayer allowed a deduction pursuant to this

section shall report the amount of the deduction separately in

a manner required by the department.

          D. The department shall compile an annual report on

the deduction provided by this section that includes the number

of taxpayers that claimed the deduction, the aggregate amount

of deductions claimed and any other information necessary to

evaluate the effectiveness of the deduction. Beginning in

2019, the department shall compile and present the report to

the revenue stabilization and tax policy committee and the

legislative finance committee with an analysis of the cost and

benefit to the state of the deduction.

          E. For the purposes of this section, "water-saving

tangible personal property":

                (1) means products:

                     (a) intended for use on private, shared

or communal property and not intended for business use, trade

or resale; and

                     (b) whose use or planting in outdoor

residential properties may result in: 1) water

conservation or ground water retention; 2) water table

recharge; or 3) a decrease in ambient air temperature that

limits water evaporation; and

                (2) includes:

                     (a) drought-tolerant live plants, turf

and grass;

                     (b) soaker or drip-irrigation hosing;

                     (c) moisture controls for sprinkler or

irrigation systems;

                     (d) mulches and soils;

                     (e) rain barrels and alternative rain

and moisture collection systems;

                     (f) permeable ground cover surfaces that

allow water to reach underground basins, aquifers or water

collection points;

                     (g) plant and grass seeds coated with

water-saving surfactants; and

                     (h) water-saving surfactants."

     SECTION 2. EFFECTIVE DATE.--

          A. If this act takes effect on or before March 1, 2018, the effective date of the provisions of this act is March 1, 2018.

          B. If this act takes effect after March 1, 2018, the effective date of the provisions of this act is July 1, 2018.

     SECTION 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.