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SPONSOR: |
Boykin |
DATE TYPED: |
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HB |
126 |
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SHORT TITLE: |
Amend Gross Receipts Act |
SB |
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ANALYST: |
Smith |
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REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
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NFI |
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(Parenthesis ( ) Indicate Revenue Decreases)
Responses
Received From
TRD
SUMMARY
Synopsis
of Bill
House Bill 126
reorganizes certain gross receipts and compensating tax sections. TRD has provided
the following section-by-section analysis:
Section 1 makes
citations in Section
Section 2 removes the definitions of “construction”,
“engaging in business”, “gross receipts”,
“prescription drugs”, and “construction material” from Section 7-9-3
NMSA 1978 and reorganizes the remaining definitions in alphabetical order.
Section 3 adds a new section (7-9-3.1) for the purpose of
defining “gross receipts”. The definition
is amended to incorporate the additional definitions of gross receipts
currently contained in Section 7-9-3.3 relating to mobile telecommunications
services.
Section 4 repeals Section 7-9-3.3 (additional definitions
relating to mobile telecommunications services) and replaces it with a new
section to define “engaging in business”.
The definition is not altered from the current definition.
Section 5 adds a new section (7-9-3.4) defining
“construction” and “construction material”.
The definition of construction material is not altered from the current
definition. In the definition of construction on p. 23, line 20 [Section
7-9-3.4(A)(1)(m)] a comma is inserted between the words “fence” and
“gate”.
Section 6 makes a technical
correction to Section
Section 7 amends Section
7-9-73.2 (Deduction-Gross Receipts Tax and Governmental Gross Receipts
Tax-Prescription Drugs) to include the definition of “prescription drugs”. The definition is not altered from the
current definition.
Significant Issues
This bill was adopted by the Revenue
Stabilization and Tax Policy Committee during the interim. The point of this
legislation is to avoid tracking and signing order problems with the many
changes annually made to the Gross Receipts and Compensating Tax Act .
SS/njw