SENATE BILL 85

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Carroll H. Leavell

AN ACT

RELATING TO TAXATION; MODIFYING A PENALTY FOR INCORRECT REPORTING OF GROSS RECEIPTS TAX DEDUCTIONS FOR FOOD OR HEALTH CARE PRACTITIONER SERVICES; DECLARING AN EMERGENCY.

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

     Section 1. Section 7-1-71.2 NMSA 1978 (being Laws 2004, Chapter 116, Section 3) is amended to read:

     "7-1-71.2. PENALTY FOR [INCORRECT] EXCESSIVE REPORTING OF FOOD DEDUCTION OR HEALTH CARE PRACTITIONER SERVICES DEDUCTION.--A taxpayer who claims a deduction pursuant to Section 7-9-92 or 7-9-93 NMSA 1978 and [fails to correctly report the] reports an amount in excess of the deduction to which the taxpayer is entitled shall pay a penalty in the amount of the difference between the [incorrect] reported deduction amount and the correct deduction amount multiplied by [twice] twenty-five percent of the total local option tax rates in effect at the taxpayer's business location for which the deduction was claimed. This penalty shall be in addition to other applicable penalties."

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

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