AN ACT
RELATING TO TAXATION; PROVIDING
ADDITIONAL GROSS RECEIPTS AND COMPENSATING TAX EXEMPTIONS RELATED TO SPACE
VEHICLES; PROVIDING A COMPENSATING TAX DEDUCTION FOR THE USE OF CERTAIN
MATERIALS OR DEVICES USED IN RESEARCH OR TESTING; AMENDING AND ENACTING SECTIONS
OF THE GROSS RECEIPTS AND COMPENSATING TAX ACT.
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, Section 7-9-26.1 NMSA 1978, is enacted to read:
"7-9-26.1. EXEMPTION--GROSS RECEIPTS TAX AND
COMPENSATING TAX--FUEL FOR SPACE VEHICLES.--
A. Exempted from the gross receipts tax are the
receipts from selling fuel, oxidizer or a substance that combines fuel and
oxidizer to propel space vehicles or to operate space vehicle launchers.
B. Exempted from the compensating tax is the use
of fuel, oxidizer or a substance that combines fuel and oxidizer to propel
space vehicles or to operate space vehicle launchers."
Section 2. Section 7-9-30 NMSA 1978 (being Laws 1969,
Chapter 144, Section 23, as amended) is amended to read:
"7-9-30. EXEMPTION--COMPENSATING TAX--RAILROAD
EQUIPMENT, AIRCRAFT AND SPACE VEHICLES.--
A. Exempted from the compensating tax is the use
of railroad locomotives, trailers, containers, tenders or cars procured or
bought for use in railroad transportation.
B. Exempted from the compensating tax is the use
of commercial aircraft bought or leased primarily for use in the transportation
of passengers or property for hire in interstate commerce.
C. Exempted from the compensating tax is the use
of space vehicles for transportation of persons or property in, to or from
space."
Section 3. Section 7-9-54.2 NMSA 1978 (being Laws 1995,
Chapter 183, Section 2, as amended) is amended to read:
"7-9-54.2. GROSS RECEIPTS--DEDUCTION--SPACEPORT
OPERATION--SPACE OPERATIONS--LAUNCHING, OPERATING AND RECOVERING SPACE VEHICLES
OR PAYLOADS--PAYLOAD SERVICES.--
A. Receipts from launching, operating or
recovering space vehicles or payloads in New Mexico may be deducted from gross
receipts.
B. Receipts from preparing a payload in New
Mexico are deductible from gross receipts.
C. Receipts from operating a spaceport in New
Mexico are deductible from gross receipts.
D. As used in this section:
(1) "payload" means a system, subsystem
or other mechanical structure or material to be conveyed into space that is
designed, constructed or intended to perform a function in space;
(2) "space" means any location beyond
altitudes of sixty thousand feet above the earth's mean sea level;
(3) "space operations" means the
process of commanding and controlling payloads in space; and
(4) "spaceport" means an installation
and related facilities used for the launching, landing, operating, recovering,
servicing and monitoring of vehicles capable of entering or returning from
space.
E. Receipts from the sale of tangible personal
property that will become an ingredient or component part of a construction
project or from performing construction services may not be deducted under this
section."
Section 4. A new section of the Gross Receipts and
Compensating Tax Act, Section 7-9-54.5 NMSA 1978, is enacted to read:
"7-9-54.5. DEDUCTION--COMPENSATING TAX--SPACE-RELATED
TEST ARTICLES.--
A. The value of space-related test articles used
in New Mexico exclusively for research or testing, placing on public display
after research or testing or storage for future research, testing or public
display may be deducted in computing compensating tax due. This subsection does not apply to any other
use of a space-related test article.
B. The value of equipment and materials used in
New Mexico for research or testing, or for supporting the research or testing
of, space-related test articles or for storage of such equipment or materials
for research or testing, or supporting the research and testing of,
space-related test articles may be deducted in computing compensating tax
due. This subsection does not apply to
any other use of such equipment and materials.
C. As used in this section, a
"space-related test article" is a material or device intended to be
used primarily in research or testing to determine properties and qualities of
the material or properties, qualities or functioning of a device or technology
when the principal use of the material, device or technology is intended to be
in space or as part of, or associated with, a space vehicle."
Section 5. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2003.
HB 682
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