HOUSE BILL 16

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

INTRODUCED BY

Jose A. Campos

AN ACT

RELATING TO TAXATION; PROVIDING FOR DEDUCTIONS FROM GROSS RECEIPTS FOR THE SALE OF CONSTRUCTION SERVICES, CONSTRUCTION EQUIPMENT AND CONSTRUCTION MATERIALS USED IN THE CONSTRUCTION OF PUBLIC HEALTH CARE FACILITIES; DECLARING AN EMERGENCY.

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 CONSTRUCTION SERVICES USED IN CONSTRUCTION OF PUBLIC HEALTH CARE FACILITIES.--Receipts from selling a construction service used in the construction of a public health care facility may be deducted from gross receipts if the sale of the construction service is made to a foundation or a nonprofit organization that:

          A. has made a written promise to a county to pay at least ninety-five percent of the costs of construction of that public health care facility; and

          B. delivers to the seller of the construction service either an appropriate nontaxable transaction certificate or other evidence acceptable to the secretary of a written promise made in accordance with Subsection A of this section."

     Section 2. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS TAX--SALE OF CONSTRUCTION MATERIALS AND CONSTRUCTION EQUIPMENT USED IN CONSTRUCTION OF PUBLIC HEALTH CARE FACILITIES.--Receipts from selling construction equipment or construction materials used in the construction of a public health care facility may be deducted from gross receipts if the sale of the construction equipment or construction materials is made to a foundation or a nonprofit organization that:

          A. has made a written promise to a county to pay at least ninety-five percent of the costs of construction of that public health care facility; and

          B. delivers to the seller either an appropriate nontaxable transaction certificate or other evidence acceptable to the secretary of a written promise made in accordance with Subsection A of this section."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is November 1, 2005.

     Section 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

- 3 -