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SPONSOR: |
Hurt
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DATE TYPED: |
1/27/02 |
HB |
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SHORT TITLE: |
Bailing Wire Gross Receipts Tax Deduction |
SB |
23/aSCONC |
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ANALYST: |
Neel |
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REVENUE
|
Estimated Revenue |
Subsequent Years
Impact |
Recurring or Non-Rec |
Fund Affected |
|
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FY02 |
FY03 |
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|
|
|
|
($0.1) |
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Recurring |
General Fund |
|
|
($0.1) |
|
Recurring |
Local Governments |
(Parenthesis ( ) Indicate Revenue Decreases)
TRD
SUMMARY
The Senate Conservation Committee adds language
to include twine used to contain feed in the deduction from gross receipts tax.
This
bill amends Section 7-9-58 NMSA 1978 to extend the gross receipts tax deduction
for sales of feed to farmers and ranchers to include the baling wire used to contain
the feed.
FISCAL IMPLICATIONS
Minimal
TECHNICAL ISSUES
TRD makes the following comments:
Livestock feed (hay or alfalfa) can be baled with twine or wire. The Department recommends adding “or twine” after “wire” on page 1, line 19.
The
changes proposed in this bill can effectively be accomplished through
Department regulation.
Currently,
Section 7-9-47 NMSA 1978 allows a deduction for sales of baling wire to farmers
who bale hay for resale. This is
considered a valid chain-of-commerce deduction since the baling wire is resold
by the farmer in combination with other tangible personal property.
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