HOUSE BILL 797
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
Irvin Harrison
AN ACT
RELATING TO TAXATION; CREATING A TAX CREDIT FOR BUSINESSES IN THE HOSPITALITY INDUSTRY THAT 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 lodging, food service, public conveyance or other business that predominantly serves tourists;
E. "hospitality training" means a program approved by the tourism department that provides customer service skills training to employees who work with tourists; and
F. "taxpayer" means an employer:
(1) that is liable for payment of gross receipts tax or personal or corporate income tax;
(2) that is responsible for withholding and payment of tax to the department or collection and payment of tax to the department; or
(3) that has been assessed a tax by the department and the tax remains unabated or unpaid.
Section 3. HOSPITALITY TRAINING TAX CREDIT--AMOUNT--PROCEDURE.--
A. A taxpayer may claim a tax credit, that may be referred to as the "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 three thousand dollars ($3,000) per year per taxpayer.
B. Beginning on January 1, 2005, the hospitality training tax credit may be claimed against a taxpayer's liability for gross receipts tax. The hospitality training tax credit may be claimed against taxpayer's liability for personal or corporate income tax for tax years beginning on or after January 1, 2005. A taxpayer may claim a hospitality training tax credit only once for an expenditure; however, a taxpayer may submit a claim against both the gross receipts tax and income tax liabilities of the hospitality business for the same year.
C. The hospitality training tax credit claim shall be submitted on a form provided by the department. A 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 claimed by a taxpayer shall not exceed the aggregate tax liability of the taxpayer for the tax against which the credit is claimed. If the hospitality training tax credit is claimed against the taxpayer's:
(1) gross receipts taxes, the claim may not exceed the taxpayer's gross receipts tax liability in the calendar year in which the hospitality training was provided; or
(2) personal or corporate income tax, the claim may not exceed the taxpayer's personal or corporate income tax liability in the tax year in which the hospitality training was provided.
E. A hospitality training tax credit claimed against a taxpayer's gross receipts tax liability may be claimed in any month during the calendar year, but may not exceed the aggregate amount of gross receipts tax paid by the taxpayer for the calendar year, including the gross receipts due and payable at the time that the credit is requested. If the hospitality training tax credit exceeds the amount of gross receipts tax paid to date in the calendar year, the remainder may be carried over to be credited against future gross receipts tax liabilities due in the same calendar year. Only hospitality training tax credits earned in December of a year may be claimed against gross receipts tax liability reported in January of the following year.
F. The hospitality training tax credit may be claimed by a taxpayer against personal or corporate income taxes only for the tax year in which the hospitality training was provided.
Section 4. HOSPITALITY TRAINING PROGRAMS.--
A. Prior to December 1, 2005, the tourism department shall adopt and publish rules setting forth the standards to be met by a hospitality training program to provide hospitality training and to implement the Hospitality Training Tax Credit Act.
B. A hospitality training tax credit claimed pursuant to the provisions of the Hospitality Training Tax Credit Act may be claimed only for expenditures for training at a hospitality training program approved by the tourism department.
Section 5. ADMINISTRATION.--
A. The department shall administer the tax credit provisions of the Hospitality Training Tax Credit Act and may adopt rules to implement that act.
B. The Tax Administration Act applies to the administration and enforcement of the tax provisions of the Hospitality Training Tax Credit Act.
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