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SPONSOR: |
HTRC |
DATE TYPED: |
|
HB |
886/HTRCS |
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SHORT TITLE: |
Post Secondary Textbook Gross Receipts |
SB |
|
||||
|
ANALYST: |
Neel |
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REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
|
|
Recurring |
Youth
Conservation Corps (EMNRD) |
|
|
|
Recurring |
State
Park & Rec. Capital Improvement (EMNRD) |
|
|
|
Recurring |
Public
Project Revolving Fund ( |
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
LFC files
Responses
Received From
Taxation
and Revenue Department (TRD)
Energy,
Minerals and Natural Resources Department (EMND)
SUMMARY
Synopsis
of Bill
The
House Taxation and Revenue Committee Substitute for House Bill 886 amends Section
7-9-3.2 NMSA 1978 to provide an exclusion from the meaning of “facilities open
to the general public” for the purpose of the governmental gross receipts
tax. Specifically excluded are “point of sale (POS) registers or electronic devices
at a bookstore owned or operated by a public post-secondary educational
institution when the registers or devices are utilized in the sale of textbooks
or other materials required for courses at the institution to a student
enrolled at the institution who displays a valid student identification card”. This effectively means no governmental gross
receipts tax would be due on sales of textbooks or required materials.
Currently, in order for college or university bookstores to not be subject to
governmental gross receipts tax on bookstore sales, they must close their
bookstores to the general public during “book week” and limit admittance to
those with a valid student ID.
Significant
Issues
Twenty-five percent (25%) of the GGRT is
dedicated, by statute to the Energy, Minerals and Natural Resources Department
for payment of bonds and Youth Conservation Corps (YCC) projects. Of the 25% distribution, 60% is appropriated
to the EMNRD for state park and recreation area capital improvements and 40% is
appropriated to the YCC for the funding of projects that employ youth and at
the same time improve
FISCAL IMPLICATIONS
On
average, full-time university students spend almost $400 per year on textbooks,
while students in the two-year colleges spend an average of almost $260 per
year. However, college and university bookstores currently close their doors to
the general public during “book week” and limit admittance to those with a
valid student ID. In this manner the
bookstores avoid governmental gross receipts tax on these sales. Sales of textbooks and other tangible
property outside this time period are taxable, however.
SN/yr