HOUSE BILL 133

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Donald L. Whitaker

FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE

AN ACT

RELATING TO TAXATION; PROVIDING A COMPENSATING TAX DEDUCTION FOR DEFENSE SYSTEMS TESTED AT A MAJOR RANGE AND TEST FACILITY BASE IN NEW MEXICO; DECLARING AN EMERGENCY.

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--COMPENSATING TAX--DEFENSE SYSTEMS FOR TESTING.--The value of equipment, replacement parts or other components of defense systems or the value of entire defense systems that are manufactured, fabricated or assembled outside of New Mexico and brought into the state to be tested or evaluated for programs of the United States department of defense at a major range and test facility base may be deducted by a taxpayer in computing the compensating tax due."

     Section 2. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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