HOUSE BILL 119
49th legislature - STATE OF NEW MEXICO - second session, 2010
INTRODUCED BY
Ben Lujan
AN ACT
RELATING TO TAXATION; TEMPORARILY INCREASING THE RATE OF THE GROSS RECEIPTS TAX AND THE COMPENSATING TAX; TEMPORARILY RESTRICTING THE IMPOSITION OF LOCAL OPTION GROSS RECEIPTS TAXES; PROVIDING A GROSS RECEIPTS TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-9-4 NMSA 1978 (being Laws 1966, Chapter 47, Section 4, as amended) is amended to read:
"7-9-4. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GROSS RECEIPTS TAX".--
A. For the privilege of engaging in business, an excise tax equal to [five percent of gross receipts] the amount specified in Subsection B of this section is imposed on any person engaging in business in New Mexico. [B.] The tax imposed by this section shall be referred to as the "gross receipts tax".
B. The gross receipts tax shall be equal to:
(1) from July 1, 2010 to June 30, 2011, five and one-half percent of gross receipts;
(2) from July 1, 2011 to June 30, 2012, five and three-eighths percent of gross receipts;
(3) from July 1, 2012 to June 30, 2013, five and one-fourth percent of gross receipts;
(4) from July 1, 2013 to June 30, 2014, five and one-eighth percent of gross receipts; and
(5) on or after July 1, 2014, five percent of gross receipts."
Section 2. Section 7-9-7 NMSA 1978 (being Laws 1966, Chapter 47, Section 7, as amended) is amended to read:
"7-9-7. IMPOSITION AND RATE OF TAX--DENOMINATION AS "COMPENSATING TAX".--
A. For the privilege of using tangible property in New Mexico, there is imposed on the person using the property an excise tax equal to [five percent] the percent specified in Subsection E of this section of the value of tangible property that was:
(1) manufactured by the person using the property in the state;
(2) acquired outside this state as the result of a transaction that would have been subject to the gross receipts tax had it occurred within this state; or
(3) acquired as the result of a transaction [which] that was not initially subject to the compensating tax imposed by Paragraph (2) of this subsection or the gross receipts tax but which transaction, because of the buyer's subsequent use of the property, should have been subject to the compensating tax imposed by Paragraph (2) of this subsection or the gross receipts tax.
B. For the purpose of Subsection A of this section, value of tangible property shall be the adjusted basis of the property for federal income tax purposes determined as of the time of acquisition or introduction into this state or of conversion to use, whichever is later. If no adjusted basis for federal income tax purposes is established for the property, a reasonable value of the property shall be used.
C. For the privilege of using services rendered in New Mexico, there is imposed on the person using such services an excise tax equal to [five percent] the percent specified in Subsection E of this section of the value of the services at the time they were rendered. The services, to be taxable under this subsection, must have been rendered as the result of a transaction [which] that was not initially subject to the gross receipts tax but which transaction, because of the buyer's subsequent use of the services, should have been subject to the gross receipts tax.
D. The tax imposed by this section shall be referred to as the "compensating tax".
E. The compensating tax rate shall be:
(1) from July 1, 2010 to June 30, 2011, five and one-half percent;
(2) from July 1, 2011 to June 30, 2012, five and three-eighths percent;
(3) from July 1, 2012 to June 30, 2013, five and one-fourth percent;
(4) from July 1, 2013 to June 30, 2014, five and one-eighth percent; and
(5) on or after July 1, 2014, five percent."
Section 3. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] CREDIT--GROSS RECEIPTS TAX--RECEIPTS OF CERTAIN MEDICAID PROVIDERS.--
A. An eligible medicaid dental provider may claim a credit for a reporting period against gross receipts tax due for that reporting period as follows:
(1) on or after July 1, 2010 but before July 1, 2011, in an amount equal to one-half percent of the provider's taxable gross receipts for that reporting period from the provision of pediatric dental services to medicaid or state children's health insurance program recipients;
(2) on or after July 1, 2011 but before July 1, 2012, in an amount equal to three-eighths percent of the provider's taxable gross receipts for that reporting period from the provision of pediatric dental services to medicaid or state children's health insurance program recipients;
(3) on or after July 1, 2012 but before July 1, 2013, in an amount equal to one-fourth percent of the provider's taxable gross receipts for that reporting period from the provision of pediatric dental services to medicaid or state children's health insurance program recipients; and
(4) on or after July 1, 2013 but before July 1, 2014, in an amount equal to one-eighth percent of the provider's taxable gross receipts for that reporting period from the provision of pediatric dental services to medicaid or state children's health insurance program recipients.
B. For the purposes of this section:
(1) "eligible medicaid dental provider" means a person whose primary business is the provision of pediatric dental services to patients and whose patient base in the previous fiscal year was at least seventy-five percent pediatric dental medicaid or state children's health insurance program recipients;
(2) "medicaid or state children's health insurance program recipients" means persons receiving services pursuant to Title 19 or Title 21 of the federal Social Security Act as administered by the human services department; and
(3) "pediatric dental services" means services that are provided to persons eighteen years of age or younger by a dentist or dental hygienist licensed pursuant to the Dental Health Care Act and that are within the scope of services of that act."
Section 4. Section 7-19D-5 NMSA 1978 (being Laws 1993, Chapter 346, Section 5, as amended) is amended to read:
"7-19D-5. RESTRICTIONS ON IMPOSITION OF TAX--SPECIFIC EXEMPTIONS.--
A. No tax authorized by the provisions of the Municipal Local Option Gross Receipts Taxes Act shall be imposed if the tax is to take effect after July 1, 2010 but before July 1, 2014 and the total local option gross receipts tax rate in effect in the municipality exceeds, or with the imposition of the tax will exceed, two and one-half percent. For the purposes of this subsection, "total local option gross receipts tax rate in effect" means the aggregate rate of all local option gross receipts taxes imposed and in effect, including taxes imposed pursuant to the Municipal Local Option Gross Receipts Taxes Act, the County Local Option Gross Receipts Taxes Act, the Local Hospital Gross Receipts Tax Act and the County Correctional Facility Gross Receipts Tax Act.
B. No tax authorized by the provisions of the Municipal Local Option Gross Receipts Taxes Act shall be imposed on the gross receipts arising from:
[A.] (1) transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the municipality to another point outside the municipality; or
[B.] (2) a business located outside the boundaries of a municipality on land owned by that municipality for which a state gross receipts tax distribution is made pursuant to Section 7-1-6.4 NMSA 1978."
Section 5. Section 7-20C-5 NMSA 1978 (being Laws 1991, Chapter 176, Section 5, as amended) is amended to read:
"7-20C-5. RESTRICTIONS ON IMPOSITION OF TAX--SPECIFIC EXEMPTIONS.--
A. No local hospital gross receipts tax shall be imposed on a countywide basis if the tax is to take effect after July 1, 2010 but before July 1, 2014 and the total local option gross receipts tax rate in effect in the county or in any municipality located within the county exceeds, or with the imposition of the tax will exceed, two and one-half percent; provided, however, that the tax may be imposed in those areas of the county in which the total local option gross receipts tax rate that would be in effect upon imposition of the tax does not exceed two and one-half percent. For the purposes of this subsection, "total local option gross receipts tax rate in effect" means the aggregate rate of all local option gross receipts taxes imposed and in effect, including taxes imposed pursuant to the Municipal Local Option Gross Receipts Taxes Act, the County Local Option Gross Receipts Taxes Act, the Local Hospital Gross Receipts Tax Act and the County Correctional Facility Gross Receipts Tax Act.
B. No local hospital gross receipts tax shall be imposed on the gross receipts arising from transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the county to another point outside the county."
Section 6. Section 7-20E-5 NMSA 1978 (being Laws 1993, Chapter 354, Section 5, as amended) is amended to read:
"7-20E-5. RESTRICTIONS ON IMPOSITION OF TAX--SPECIFIC EXEMPTIONS.--
A. No tax authorized [under] by the provisions of the County Local Option Gross Receipts Taxes Act to be imposed in the county area shall be imposed if the tax is to take effect after July 1, 2010 but before July 1, 2014 and the total local option gross receipts tax rate in effect in the county area exceeds, or with the imposition of the tax will exceed, two and one-half percent.
B. No tax authorized by the provisions of the County Local Option Gross Receipts Taxes Act to be imposed on a countywide basis shall be imposed on a countywide basis if the tax is to take effect after July 1, 2010 but before July 1, 2014 and the total local option gross receipts tax rate in effect in the county or in any municipality located within the county exceeds, or with the imposition of the tax will exceed, two and one-half percent; provided, however, that the tax may be imposed in those areas of the county in which the total local option gross receipts tax rate that would be in effect upon imposition of the tax does not exceed two and one-half percent.
C. For the purposes of this section, "total local option gross receipts tax rate in effect" means the aggregate rate of all local option gross receipts taxes imposed and in effect, including taxes imposed pursuant to the County Local Option Gross Receipts Taxes Act, the Local Hospital Gross Receipts Tax Act, the County Correctional Facility Gross Receipts Tax Act and the Municipal Local Option Gross Receipts Taxes Act.
D. No tax authorized by the provisions of the County Local Option Gross Receipts Taxes Act shall be imposed on the gross receipts arising from transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the county to another point outside the county."
Section 7. Section 7-20F-6 NMSA 1978 (being Laws 1993, Chapter 303, Section 6, as amended) is amended to read:
"7-20F-6. RESTRICTIONS ON IMPOSITION OF TAX--SPECIFIC EXEMPTIONS.--
A. No county correctional facility gross receipts tax shall be imposed on a countywide basis if the tax is to take effect after July 1, 2010 but before July 1, 2014 and the total local option gross receipts tax rate in effect in the county or in any municipality located within the county exceeds, or with the imposition of the tax will exceed, two and one-half percent; provided, however, that the tax may be imposed in those areas of the county in which the total local option gross receipts tax rate that would be in effect upon imposition of the tax does not exceed two and one-half percent. For the purposes of this subsection, "total local option gross receipts tax rate in effect" means the aggregate rate of all local option gross receipts taxes imposed and in effect, including taxes imposed pursuant to the Municipal Local Option Gross Receipts Taxes Act, the County Local Option Gross Receipts Taxes Act, the Local Hospital Gross Receipts Tax Act and the County Correctional Facility Gross Receipts Tax Act.
B. No county correctional facility gross receipts tax shall be imposed on the gross receipts arising from transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the county to another point outside the county."
Section 8. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.
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