SENATE BILL 378

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

INTRODUCED BY

Stuart Ingle

AN ACT

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR SALES OF CERTAIN CLOTHING AND FOOTWEAR DURING A DESIGNATED THREE-DAY PERIOD IN AUGUST PRIOR TO THE BEGINNING OF EACH SCHOOL YEAR.

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] DEDUCTION--GROSS RECEIPTS TAX--SALE OF CERTAIN CLOTHING AND FOOTWEAR FOR LIMITED PERIOD.--

          A. Receipts from the sale of an article of clothing or footwear designed to be worn on or about the human body may be deducted from gross receipts if:

                (1) the sale price of the article is less than one hundred dollars ($100); and

                (2) the sale takes place during the period beginning at 12:01 a.m. on the first Friday in August and ending at midnight on the following Sunday.

          B. The provisions of Subsection A of this section do not apply to receipts from the sale of:

                (1) any special clothing or footwear that is primarily designed for athletic activity or protective use and that is not normally worn except when used for the athletic activity or protective use for which it is designed;

                (2) accessories, including jewelry, handbags, luggage, umbrellas, wallets, watches and similar items carried on or about the human body, without regard to whether worn on the body in a manner characteristic of clothing; and

                (3) the rental of clothing or footwear."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.

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