HOUSE BILL 491

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

INTRODUCED BY

Irvin Harrison

AN ACT

RELATING TO TAXATION; CREATING A TAX CREDIT FOR BUSINESSES IN THE HOSPITALITY INDUSTRY WHEN EMPLOYERS FUND TRAINING FOR EMPLOYEES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. SHORT TITLE.--This act may be cited as the "Hospitality Training Tax Credit Act".

     Section 2. DEFINITIONS.--As used in the Hospitality Training Tax Credit Act:

          A. "department" means the taxation and revenue department;

          B. "employee" means a person employed by one employer in a hospitality business for more than twenty hours per week as a retail manager or in a nonmanagement position;

          C. "employer" means a person engaged in a hospitality business;

          D. "hospitality business" means a retail business or nonprofit organization that employs people to interact with tourists;

          E. "hospitality training" means a program approved by the tourism department providing customer service skills training to employees who work with tourists; and

          F. "taxpayer" means an employer:

                (1) who is liable for payment of a tax;

                (2) who is responsible for withholding and payment over or collection and payment over of a tax; or

                (3) to whom an assessment has been made, if the assessment remains unabated or the amount of the assessment has not been paid.

     Section 3. HOSPITALITY TRAINING TAX CREDIT--AMOUNT--CLAIMANT.--

          A. A taxpayer may claim a hospitality training tax credit in an amount equal to the cost of hospitality training paid for by the taxpayer and attended by employees of that taxpayer. The amount of the tax credit claimed may not exceed ten thousand dollars ($10,000) per year per taxpayer.

          B. The hospitality training tax credit may be claimed against a taxpayer's liability for gross receipts tax or personal or corporate income tax.

          C. The hospitality training tax credit claim shall be submitted on a form provided by the department. The taxpayer shall submit the hospitality training tax credit claim at the time that the taxpayer submits a return for payment of the tax against which the claim is made.

          D. The hospitality training tax credit may be claimed only against taxes owed in the tax year in which the hospitality training was provided.

     Section 4. HOSPITALITY TRAINING PROGRAMS.--

          A. Prior to December 1, 2004, the tourism department shall adopt and publish rules setting forth the standards to be met by a hospitality training program to provide hospitality training pursuant to the Hospitality Training Tax Credit Act.

          B. A hospitality training tax credit pursuant to the provisions of the Hospitality Training Tax Credit Act may be issued only for expenditures for training at a hospitality training program approved by the tourism department.

     Section 5. ADMINISTRATION.--The department shall administer the Hospitality Training Tax Credit Act.

     Section 6. APPLICABILITY.--The provisions of this act apply to the 2005 and subsequent personal or corporate income tax years.

     Section 7. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2005.

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