SENATE BILL 732

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

INTRODUCED BY

H. Diane Snyder

AN ACT

RELATING TO TAXATION; CREATING DEDUCTIONS FROM GROSS RECEIPTS FOR ARCHITECTURAL AND ENGINEERING SERVICES SOLD TO PERSONS ENGAGED IN THE CONSTRUCTION BUSINESS.

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

     Section 1. Section 7-9-52 NMSA 1978 (being Laws 1969, Chapter 144, Section 42, as amended by Laws 2000, Chapter 84, Section 4 and also by Laws 2000, Chapter 98, Section 2) is amended to read:

     "7-9-52. DEDUCTION--GROSS RECEIPTS TAX--SALE OF CONSTRUCTION SERVICES, ARCHITECTURAL SERVICES AND ENGINEERING SERVICES TO PERSONS ENGAGED IN THE CONSTRUCTION BUSINESS.--

          A. Receipts from selling a construction service, an architectural service or an engineering service may be deducted from gross receipts if the sale is made to a person engaged in the construction business who delivers a nontaxable transaction certificate to the person performing the construction service, architectural service or engineering service.

          B. The buyer delivering the nontaxable transaction certificate must have the construction services, architectural services or engineering services performed upon:

                (1) a construction project [which] that is subject to the gross receipts tax upon its completion or upon the completion of the overall construction project of which it is a part;

                (2) a construction project [which] that is subject to the gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed; or

                (3) a construction project that is located on the tribal territory of an Indian nation, tribe or pueblo."

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