HOUSE BILL 448

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

INTRODUCED BY

Daniel P. Silva

AN ACT

RELATING TO PROFESSIONAL CONTESTS; PROVIDING AN EXEMPTION FROM GROSS RECEIPTS TAX FOR CERTAIN PROFESSIONAL CONTESTS, EVENTS AND CONCERTS; AMENDING THE DEFINITION OF "PROFESSIONAL CONTEST" IN THE PROFESSIONAL ATHLETIC COMPETITION 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 is enacted to read:

     "[NEW MATERIAL] EXEMPTION--GROSS RECEIPTS TAX--RECEIPTS FROM CERTAIN ATHLETIC CONTESTS, SPORTING EVENTS AND CONCERTS.--Exempted from the gross receipts tax are:

          A. receipts from the promotion of professional contests subject to the provisions of Section 60-2A-23 NMSA 1978 and from the exhibition of live professional contests subject to the provisions of Section 60-2A-26 NMSA 1978;

          B. receipts from ticket sales or admission fees for professional contests as defined in Section 60-2A-2 NMSA 1978; and

          C. receipts from ticket sales or admission fees for a live concert held at a venue capable of accommodating at least two thousand five hundred persons."

     Section 2. Section 60-2A-2 NMSA 1978 (being Laws 1980, Chapter 90, Section 2, as amended) is amended to read:

     "60-2A-2. DEFINITIONS.--As used in the Professional Athletic Competition Act:

          A. "board" means the medical advisory board;

          B. "commission" means the New Mexico athletic commission;

          C. "foreign co-promoter" means a promoter who has no place of business in this state;

          D. "professional boxer" or "professional wrestler" means an individual who competes for money, prizes or purses or who teaches, pursues or assists in the practice of boxing, wrestling or martial arts as a means of obtaining a livelihood or pecuniary gain;

          E. "professional contest" means any professional automobile racing, boxing, wrestling or martial arts contest or exhibition or a one-time professional sporting event, whether or not an admission fee is charged for admission of the public;

          F. "promoter" means any person, and in the case of a corporate promoter includes any officer, director or stockholder of the corporation, who produces or stages any professional boxing, wrestling or martial arts contest, exhibition or closed circuit television show;

          G. "purse" means the financial guarantee or any other remuneration, or part thereof, for which professional boxers or professional wrestlers are participating in a contest or exhibition and includes the participant's share of any payment received for radio broadcasting, television or motion picture rights;

          H. "ring official" means any person who performs an official function during the progress of a contest or exhibition; and

          I. "department" means the regulation and licensing department."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2004.

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