SENATE BILL 258

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Carroll H. Leavell

AN ACT

RELATING TO TAXATION; ELIMINATING THE ADDITIONAL PENALTY FOR INCORRECT REPORTING OF THE GROSS RECEIPTS TAX DEDUCTION FOR RECEIPTS FROM HEALTH CARE PRACTITIONER SERVICES.

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

     Section 1. Section 7-1-71.2 NMSA 1978 (being Laws 2004, Chapter 116, Section 3) is amended to read:

     "7-1-71.2. PENALTY FOR INCORRECT REPORTING OF FOOD DEDUCTION [OR HEALTH CARE PRACTITIONER SERVICES DEDUCTION].--A taxpayer who claims a deduction pursuant to Section 7-9-92 [or 7-9-93] NMSA 1978 and fails to correctly report the amount of the deduction to which the taxpayer is entitled shall pay a penalty in the amount of the difference between the incorrect deduction amount and the correct deduction amount multiplied by twice the total local option tax rates in effect at the taxpayer's business location for which the deduction was claimed. This penalty shall be in addition to other applicable penalties."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

- 2 -