HOUSE BILL 350

55th legislature - STATE OF NEW MEXICO - first session, 2021

INTRODUCED BY

Rebecca Dow

 

 

 

 

 

AN ACT

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR THE SALE OF MOVIE TICKETS AND CONCESSIONS BY A MOVIE THEATER.

 

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--MOVIE TICKETS AND CONCESSIONS.--

          A. Prior to July 1, 2025, receipts from the sale of movie tickets and concessions by a movie theater may be deducted from gross receipts.

          B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.

          C. The department shall compile an annual report on the deduction provided by this section that shall include 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. 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 of the deduction.

          D. As used in this section:

                (1) "concessions" means food and beverages prepared and sold at a movie theater for immediate consumption by customers of the movie theater;

                (2) "movie" means a story or event recorded by a camera as a set of moving images and shown in a theater;

                (3) "movie theater" means a permanent indoor or drive-in theater whose principal business is showing movies for public entertainment; and

                (4) "movie ticket" means a voucher that indicates that an individual is entitled to admission to view a movie at a movie theater."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2021.

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