SENATE BILL 428

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

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO TAXATION; EXPANDING THE DEFINITION OF GOVERNMENTAL GROSS RECEIPTS TO INCLUDE RECEIPTS FROM THE SALE OF TANGIBLE PERSONAL PROPERTY TO INMATES OF THE CORRECTIONS DEPARTMENT.

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 receipts of the state or an agency, institution, instrumentality or political subdivision 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 or refuse disposal or both;

                (4) sewage services;

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

                (6) the renting of parking, docking or tie-down spaces or the granting of permission to park vehicles, tie down aircraft or dock boats; and

                (7) the sale of tangible personal property to an inmate of the corrections department under sentence to or confined in a prison or other correctional institution.

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

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