SENATE BILL 170

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO TAXATION; PROVIDING FOR ITEMIZATION OF DEDUCTIONS FROM GROSS RECEIPTS FOR TAXATION PURPOSES; REQUIRING PERSONS CLAIMING EXEMPTIONS FROM CERTAIN TAXES TO FILE TAX RETURNS UNLESS SPECIFICALLY EXCEPTED FROM FILING.

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

     SECTION 1. Section 7-1-13 NMSA 1978 (being Laws 1965, Chapter 248, Section 18, as amended) is amended to read:

     "7-1-13. TAXPAYER RETURNS--PAYMENT OF TAXES--EXTENSION OF TIME.--

          A. Taxpayers are liable for tax at the time of and after the transaction or incident giving rise to tax until payment is made. Taxes are due on and after the date on which their payment is required until payment is made.

          B. Every taxpayer shall, on or before the date on which payment of any tax is due, complete and file a tax return in a form prescribed and according to the regulations issued by the secretary. The secretary may create a combined reporting system for reporting tax liabilities on a periodic basis for taxes imposed pursuant to the Gross Receipts and Compensating Tax Act and the Withholding Tax Act and other taxes for which reporting on a periodic basis, more frequently than once per year, is required.

          C. Except as provided in Section 7-1-13.1 NMSA 1978 or by regulation, ruling, order or instruction of the secretary, the payment of any tax or the filing of any return may be accomplished by mail. When the filing of a tax return or payment of a tax is accomplished by mail, the date of the postmark shall be considered the date of submission of the return or payment.

          [C.] D. If any adjustment is made in the basis for computation of any federal tax as a result of an audit by the internal revenue service or the filing of an amended federal return changing a prior election or making any other change for which federal approval is required by the Internal Revenue Code, the taxpayer affected shall, within ninety days of the internal revenue service audit adjustment or payment of the federal refund, file an amended return with the department. Payment of any additional tax due shall accompany the return.

          [D.] E. Payment of the total amount of all taxes that are due from the taxpayer shall precede or accompany the return. Delivery to the department of a check that is not paid upon presentment does not constitute payment.

          [E.] F. The secretary or the secretary's delegate may, for good cause, extend in favor of a taxpayer or a class of taxpayers, for no more than a total of twelve months, the date on which payment of any tax is required or on which any return required by provision of the Tax Administration Act shall be filed, but no extension shall prevent the accrual of interest as otherwise provided by law. When an extension of time for income tax has been granted a taxpayer under the Internal Revenue Code, the extension shall serve to extend the time for filing New Mexico income tax provided that a copy of the approved federal extension of time is attached to the taxpayer's New Mexico income tax return. The secretary by regulation may also provide for the automatic extension for no more than six months of the date upon which payment of any New Mexico income tax or the filing of any New Mexico income tax return is required. If the secretary or the secretary's delegate believes it necessary to ensure the collection of the tax, the secretary or the secretary's delegate may require, as a condition of granting any extension, that the taxpayer furnish security in accordance with the provisions of Section 7-1-54 NMSA 1978."

     SECTION 2. Section 7-2-12 NMSA 1978 (being Laws 1965, Chapter 202, Section 10, as amended) is amended to read:

     "7-2-12. TAXPAYER RETURNS--REPORTING EXEMPTIONS--PAYMENT OF TAX.--

          A. Every resident of this state and every individual deriving income from any business transaction, property or employment within this state [and not exempt from tax under the Income Tax Act] who is required by the laws of the United States to file a federal income tax return shall file a complete tax return with the department in form and content as prescribed by the secretary. A person who is exempt from tax pursuant to the Income Tax Act shall submit a tax return stating income from any business transaction, property or employment within this state and identify the exemption to which the person is entitled.

          B. Except as provided in Subsection [B] C of this section, the return required and the tax imposed on individuals under the Income Tax Act are due and payment is required on or before the fifteenth day of the fourth month following the end of the taxable year.

          [B.] C. When the department approves electronic media for use by a taxpayer whose taxable year is a calendar year, the taxpayer who uses electronic media for both filing and payment must submit the required return and the tax imposed on individuals under the Income Tax Act on or before the thirtieth day of the fourth month following the end of the taxable year."

     SECTION 3. Section 7-9-5 NMSA 1978 (being Laws 1966, Chapter 47, Section 5, as amended) is amended to read:

     "7-9-5. PRESUMPTION OF TAXABILITY.--

          A. To prevent evasion of the gross receipts tax and to aid in its administration, it is presumed that all receipts of a person engaging in business are subject to the gross receipts tax. [Any person engaged solely in transactions specifically exempt under the provisions of the Gross Receipts and Compensating Tax Act shall not be required to register or file a return under that act.] A person who has gross receipts shall report all of the gross receipts for the period as required by the department. The person shall itemize exemptions or deductions claimed on a form provided by the department and in a manner that meets rules of the department. Each deduction shall be stated separately and identified. Multiple deductions claimed for the period pursuant to the same section of law may be aggregated. A person that is exempt from the gross receipts or compensating taxes pursuant to the following sections of the Gross Receipts and Compensating Tax Act is not required to report pursuant to that act if the sole purpose of reporting would be to claim the exemption for which the person is qualified:

                (1) Subsection A of Section 7-9-13 NMSA 1978; or

                (2) Section 7-9-13.1, 7-9-13.4 through 7-9-14, 7-9-17, 7-9-18.1, 7-9-22 through 7-9-23.1, 7-9-25, 7-9-26, 7-9-28 or 7-9-41.3 NMSA 1978.

          B. If receipts from nontaxable charges for mobile telecommunications services are aggregated with and not separately stated from taxable charges for mobile telecommunications services, [then] the charges for nontaxable mobile telecommunications services shall be subject to gross receipts tax unless the home service provider can reasonably identify nontaxable charges in its books and records that are kept in the regular course of business. For the purposes of this subsection, "charges for mobile telecommunications services", "home service provider" and "mobile telecommunications services" have the meanings given in the federal Mobile Telecommunications Sourcing Act."

     SECTION 4. Section 7-9C-4 NMSA 1978 (being Laws 1992, Chapter 50, Section 4 and Laws 1992, Chapter 67, Section 4, as amended) is amended to read:

     "7-9C-4. PRESUMPTION OF TAXABILITY--ITEMIZING DEDUCTIONS.--

          A. To prevent evasion of the interstate telecommunications gross receipts tax and to aid in its administration, it is presumed that all receipts of a person engaging in interstate telecommunications business are subject to the interstate telecommunications gross receipts tax.

          B. If receipts from nontaxable charges for mobile telecommunications services are aggregated with and not separately stated from taxable charges for mobile telecommunications services, [then] the charges for nontaxable mobile telecommunications services shall be subject to interstate telecommunications gross receipts tax unless the home service provider can reasonably identify nontaxable charges in its books and records that are kept in the regular course of business.

          C. A person claiming a deduction pursuant to the Interstate Telecommunications Gross Receipts Tax Act shall itemize each deduction from gross receipts claimed, specifying the section of law in which the deduction is set forth and the amount of each deduction claimed. The department shall provide the form for reporting deductions claimed pursuant to the Interstate Telecommunications Gross Receipts Tax Act."

     SECTION 5. Section 7-13-5 NMSA 1978 (being Laws 1971, Chapter 207, Section 5, as amended) is amended to read:

     "7-13-5. TAX RETURNS--PAYMENT OF TAX--REPORTING DEDUCTIONS.--

          A. Distributors shall file gasoline tax returns in form and content as prescribed by the secretary on or before the twenty-fifth day of the month following the month in which gasoline is received in New Mexico. Such returns shall be accompanied by payment of the amount of gasoline tax due. The department may require that the tax returns be provided through electronic means as long as an exception is provided for distributors with limited amounts of fuel distributed.

          B. A distributor claiming a deduction pursuant to the Gasoline Tax Act shall itemize each deduction from gasoline received that is claimed, specifying the section and subsection of law pursuant to which the deduction is claimed and the amount of gasoline deducted. The department shall adjust the gasoline tax return forms to allow for deductions to be itemized."

     SECTION 6. Section 7-13-6 NMSA 1978 (being Laws 1971, Chapter 207, Section 6, as amended) is amended to read:

     "7-13-6. RETURNS BY WHOLESALERS--EXCEPTION--REPORTING DEDUCTIONS.--

          A. Wholesalers shall file information returns in form and content as prescribed by the department on or before the twenty-fifth day of the month following the month in which gasoline is sold in New Mexico. The department may require that the information returns be provided through electronic means as long as an exception is provided for wholesalers with limited amounts of fuel sold. Sales of gasoline in quantities of thirty-five gallons or more delivered into the fuel tanks of aircraft are not wholesale sales for the purposes of this section, [and] but information returns on such sales [need not] shall be filed with the department.

          B. A wholesaler claiming a deduction pursuant to the Gasoline Tax Act shall itemize each deduction from gasoline received that is claimed, specifying the section and subsection of law pursuant to which the deduction is claimed and the amount of gasoline deducted. The department shall adjust the gasoline tax return forms to allow for deductions to be itemized."

     SECTION 7. Section 7-13-6.1 NMSA 1978 (being Laws 2005, Chapter 109, Section 4) is amended to read:

     "7-13-6.1. RETURNS BY RETAILERS--REQUIREMENTS--EXCEPTION--REPORTING DEDUCTIONS.--

          A. Retailers shall file information returns in form and content as prescribed by the department on or before the twenty-fifth day of the month following the month in which gasoline is sold in New Mexico. The department may require that the information returns be provided through electronic means if the department provides an exception from that requirement for retailers that purchase limited amounts of fuel.

          B. A retailer claiming a deduction pursuant to the Gasoline Tax Act shall itemize each deduction from gasoline received that is claimed, specifying the section and subsection of law pursuant to which the deduction is claimed and the amount of gasoline deducted. The department shall adjust the gasoline tax return forms to allow for deductions to be itemized."

     SECTION 8. Section 7-13-6.2 NMSA 1978 (being Laws 2005, Chapter 109, Section 5) is amended to read:

     "7-13-6.2. RETURNS BY RACK OPERATORS--REQUIREMENTS-- REPORTING DEDUCTIONS.--

          A. Rack operators shall file information returns in form and content as prescribed by the department on or before the twenty-fifth day of the month following the month in which gasoline is sold in New Mexico. The department may require that an information return be provided through electronic means if the department provides an exception from that requirement for rack operators that distribute limited amounts of fuel.

          B. A rack operator claiming a deduction pursuant to the Gasoline Tax Act shall itemize each deduction from gasoline received that is claimed, specifying the section and subsection of law pursuant to which the deduction is claimed and the amount of gasoline deducted. The department shall adjust the gasoline tax return forms to allow for deductions to be itemized."

     SECTION 9. APPLICABILITY.--The provisions of Section 2 of this act apply to taxable years beginning on or after January 1, 2012.

     SECTION 10. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2012.

- 10 -