SENATE BILL 11
49th legislature - STATE OF NEW MEXICO - second special session, 2010
INTRODUCED BY
Eric G. Griego
AN ACT
RELATING TO TAXATION; REPEALING THE GROSS RECEIPTS TAX DEDUCTION FOR RECEIPTS FROM THE SALE OF FOOD; ELIMINATING CERTAIN DISTRIBUTIONS BASED ON THE GROSS RECEIPTS TAX DEDUCTION FOR RECEIPTS FROM THE SALE OF FOOD; PROVIDING AN INCOME TAX REBATE FOR A PORTION OF GROSS RECEIPTS TAXES PAID ON FOOD.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-1-6.46 NMSA 1978 (being Laws 2004, Chapter 116, Section 1, as amended) is amended to read:
"7-1-6.46. DISTRIBUTION TO MUNICIPALITIES--OFFSET FOR [FOOD DEDUCTION AND] HEALTH CARE PRACTITIONER SERVICES DEDUCTION.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to a municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the sum of:
(1) for a municipality having a population of less than ten thousand according to the most recent federal decennial census and having per capita taxable gross receipts for the previous calendar year that are less than the average per capita taxable gross receipts for all municipalities for that same calendar year,
[(a) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied by the sum of the combined rate of all municipal local option gross receipts taxes in effect in the municipality for the month plus one and two hundred twenty-five thousandths percent; and
(b)] the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied by the sum of the combined rate of all municipal local option gross receipts taxes in effect in the municipality for the month plus one and two hundred twenty-five thousandths percent; or
(2) for a municipality not described in Paragraph (1) of this subsection,
[(a) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied by the sum of the combined rate of all municipal local option gross receipts taxes in effect in the municipality on January 1, 2007 plus one and two hundred twenty-five thousandths percent; and
(b)] the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied by the sum of the combined rate of all municipal local option gross receipts taxes in effect in the municipality on January 1, 2007 plus one and two hundred twenty-five thousandths percent.
B. The distribution pursuant to Subsection A of this section is in lieu of revenue that would have been received by the municipality but for the deductions provided by [Sections 7-9-92 and] Section 7-9-93 NMSA 1978. The distribution shall be considered gross receipts tax revenue and shall be used by the municipality in the same manner as gross receipts tax revenue, including payment of gross receipts tax revenue bonds.
C. For the purposes of this section, "business locations attributable to the municipality" means business locations:
(1) within the municipality;
(2) on land owned by the state, commonly known as the "state fairgrounds", within the exterior boundaries of the municipality;
(3) outside the boundaries of the municipality on land owned by the municipality; and
(4) on an Indian reservation or pueblo grant in an area that is contiguous to the municipality and in which the municipality performs services pursuant to a contract between the municipality and the Indian tribe or Indian pueblo if:
(a) the contract describes an area in which the municipality is required to perform services and requires the municipality to perform services that are substantially the same as the services the municipality performs for itself; and
(b) the governing body of the municipality has submitted a copy of the contract to the secretary.
D. A distribution pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a municipality pursuant to the Tax Increment for Development Act."
Section 2. Section 7-1-6.47 NMSA 1978 (being Laws 2004, Chapter 116, Section 2, as amended) is amended to read:
"7-1-6.47. DISTRIBUTION TO COUNTIES--OFFSET FOR [FOOD DEDUCTION AND] HEALTH CARE PRACTITIONER SERVICES DEDUCTION.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to a county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the sum of:
(1) for a county having a population of less than forty-eight thousand according to the most recent federal decennial census:
[(a) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed throughout the county;
(b) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed in the county area not within a municipality;
(c)] (a) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed throughout the county; and
[(d)] (b) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed in the county area not within a municipality; or
(2) for a county not described in Paragraph (1) of this subsection:
[(a) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed throughout the county;
(b) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed in the county area not within a municipality;
(c)] (a) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed throughout the county; and
[(d)] (b) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed in the county area not within a municipality.
B. The distribution pursuant to Subsection A of this section is in lieu of revenue that would have been received by the county but for the deductions provided by [Sections 7-9-92 and] Section 7-9-93 NMSA 1978. The distribution shall be considered gross receipts tax revenue and shall be used by the county in the same manner as gross receipts tax revenue, including payment of gross receipts tax revenue bonds.
C. A distribution pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a county pursuant to the Tax Increment for Development Act."
Section 3. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] REBATE FOR GROSS RECEIPTS TAX ON FOOD-- REFUND.--
A. A resident who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a rebate for a portion of gross receipts taxes on food purchases to which the resident has been subject during the taxable year for which the return is filed. The rebate may be claimed even though the resident has no income taxable under the Income Tax Act. The rebate shall be based on the number of personal exemptions allowed for federal income tax purposes for individuals domiciled in New Mexico and included in the return filed by the taxpayer. The rebate amount shall be in the amounts specified in Subsection B of this section.
B. For heads of household, surviving spouses, married individuals filing joint returns, married individuals filing separate returns and single individuals, the rebate shall be at the following amount, but if reduced, the amount of the rebate shall not be reduced below zero:
If the number And the adjusted
of personal gross income does
exemptions is: not exceed: The rebate is:
1 $21,660 $108 less 2% of excess over $16,245
2 $29,140 $146 less 2% of excess over $21,855
3 $36,620 $183 less 2% of excess over $27,465
4 $44,100 $221 less 2% of excess over $33,075
5 $51,580 $258 less 2% of excess over $38,685
6 $59,060 $295 less 2% of excess over $44,295
7 $66,540 $333 less 2% of excess over $49,905
8 $74,020 $370 less 2% of excess over $55,515
9 $81,500 $408 less 2% of excess over $61,125.
C. The tax rebate provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the tax rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
D. No claim for the tax rebate provided in this section shall be allowed for a resident who was an inmate of a public institution for more than six months during the taxable year for which the rebate could be claimed or who was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate could be claimed.
E. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim the tax rebate based on the number of personal exemptions allowed for federal income tax purposes; provided that the combined amount of the rebate for both married taxpayers shall not exceed the rebate that would have been allowed on a joint return."
Section 4. REPEAL.--Section 7-9-92 NMSA 1978 (being Laws 2004, Chapter 116, Section 5) is repealed effective July 1, 2010.
Section 5. APPLICABILITY.--
A. The distributions pursuant to Sections 1 and 2 of this act apply to receipts from the gross receipts tax that are attributable to gross receipts received on or after July 1, 2010.
B. The provisions of Section 3 of this act apply to taxable years beginning on or after January 1, 2010.
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