HB 8

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AN ACT

RELATING TO TAXATION; PROVIDING FOR DEDUCTIONS FROM GROSS

RECEIPTS FOR THE SALE OF ENGINEERING, ARCHITECTURAL AND

CONSTRUCTION SERVICES, CONSTRUCTION EQUIPMENT AND CONSTRUCTION

MATERIALS USED IN THE NEW FACILITY CONSTRUCTION OF A SOLE

COMMUNITY PROVIDER HOSPITAL THAT IS LOCATED IN A FEDERALLY

DESIGNATED HEALTH PROFESSIONAL SHORTAGE AREA.

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:

"DEDUCTION--GROSS RECEIPTS TAX--SALE OF ENGINEERING,

ARCHITECTURAL AND NEW FACILITY CONSTRUCTION SERVICES USED IN

CONSTRUCTION OF CERTAIN PUBLIC HEALTH CARE FACILITIES.--

Receipts from selling an engineering, architectural or

construction service used in the new facility construction of

a sole community provider hospital that is located in a

federally designated health professional shortage area may be

deducted from gross receipts if the sale of the engineering,

architectural or construction service is made to a foundation

or a nonprofit organization that:

A. has entered into a written agreement with a

county to pay at least ninety-five percent of the costs of new

facility construction of that sole community provider

hospital; and

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B. delivers to the seller of the engineering,

architectural or construction service either an appropriate

nontaxable transaction certificate or other evidence

acceptable to the secretary of a written agreement 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:

"DEDUCTION--GROSS RECEIPTS TAX--SALE OF CONSTRUCTION

EQUIPMENT AND CONSTRUCTION MATERIALS USED IN NEW FACILITY

CONSTRUCTION OF A SOLE COMMUNITY PROVIDER HOSPITAL THAT IS

LOCATED IN A FEDERALLY DESIGNATED HEALTH PROFESSIONAL SHORTAGE

AREA.--Receipts from selling construction equipment or

construction materials used in the new facility construction

of a sole community provider hospital that is located in a

federally designated health professional shortage area 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 entered into a written agreement with a

county to pay at least ninety-five percent of the costs of new

facility construction of that sole community provider

hospital; and

B. delivers to the seller either an appropriate

nontaxable transaction certificate or other evidence

acceptable to the secretary of a written agreement made in

accordance with Subsection A of this section."

Section 3. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2006. HB 8

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