SENATE BILL 117

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

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO TAXATION; AMENDING PROVISIONS OF THE GROSS RECEIPTS AND COMPENSATING TAX ACT RELATING TO TEXTBOOK SALES TO POST-SECONDARY STUDENTS.

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

     Section 1. Section 7-9-3.2 NMSA 1978 (being Laws 1991, Chapter 8, Section 1, as amended) is amended to read:

     "7-9-3.2. ADDITIONAL DEFINITION.--

          A. As used in the Gross Receipts and Compensating Tax Act, "governmental gross receipts" means all receipts of the state or any agency, institution, instrumentality or political subdivision thereof from:

                (1) the sale of tangible personal property other than water from facilities open to the general public;

                (2) the performance of or admissions to recreational, athletic or entertainment services or events in facilities open to the general public;

                (3) refuse collection, refuse disposal or both;

                (4) sewage services; and

                (5) the sale of water by a utility owned or operated by a county, municipality or other political subdivision of the state.

     "Governmental gross receipts" includes receipts from the sale of tangible personal property handled on consignment when sold from facilities open to the general public but excludes cash discounts taken and allowed, governmental gross receipts tax payable on transactions reportable for the period and any type of time-price differential.

          B. As used in this section, "facilities open to the general public" does not include point of sale 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."

     Section 2. Section 7-9-13.4 NMSA 1978 (being Laws 2002, Chapter 20, Section 1) is amended to read:

     "7-9-13.4. [EXEMPTION] DEDUCTION--GROSS RECEIPTS [TAX]--SALE OF TEXTBOOKS FROM CERTAIN BOOKSTORES TO ENROLLED STUDENTS.--[Exempted from the gross receipts tax are the] Receipts from the sale of textbooks [and other materials] that are required for courses at a public post-secondary educational institution may be deducted from gross receipts if the sale is [by a bookstore located on the campus of the institution and operated pursuant to a contractual agreement with that institution and the sale is] to a student enrolled at the institution who displays a valid student identification card."

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

- 3 -