HOUSE BILL 809

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Joni Marie Gutierrez

AN ACT

RELATING TO TAXATION; DEFINING FOOD OR FOOD PRODUCTS SOLD BY A BAKERY TO BE ELIGIBLE FOOD FOR THE PURPOSES OF RECEIVING A DEDUCTION FROM GROSS RECEIPTS.

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

     Section 1. Section 7-9-92 NMSA 1978 (being Laws 2004, Chapter 116, Section 5) is amended to read:

     "7-9-92. DEDUCTION--GROSS RECEIPTS--SALE OF FOOD AT RETAIL FOOD STORE.--

          A. Receipts from the sale of food at a retail food store that are not exempt from gross receipts taxation and are not deductible pursuant to another provision of the Gross Receipts and Compensating Tax Act may be deducted from gross receipts. The deduction provided by this section shall be separately stated by the taxpayer.

          B. For the purposes of this section:

                (1) "bakery" means an establishment where food such as bread, cake, cookies, pastry or other flour-based products are produced and sold to retail or wholesale customers;

                [(1)] (2) "food" means any food or food product for home consumption that meets the definition of food in 7 USCA 2012(g)(1) for purposes of the federal food stamp program and food produced and sold by a bakery that is a small business; [and

                (2)] (3) "retail food store" means a bakery or an establishment that sells food for home preparation and consumption and that meets the definition of retail food store in 7 USCA 2012(k)(1) for purposes of the federal food stamp program, whether or not the establishment participates in the food stamp program; and

                (4) "small business" means a business, the gross receipts of which are two hundred thousand dollars ($200,000)."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.

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