SENATE BILL 342

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

INTRODUCED BY

Eric G. Griego

AN ACT

RELATING TO TAXATION; PROVIDING A CREDIT AGAINST GROSS RECEIPTS TAX LIABILITIES FOR RADIO STATIONS AIRING WORK OF LOCAL MUSICIANS.

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

     SECTION 1. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] CREDIT--RADIO STATIONS--NEW MEXICO MUSIC CREDIT.--

          A. A radio station that owes gross receipts tax in New Mexico in any reporting period may claim a credit against the gross receipts tax liability of the radio station equal to fifteen percent of the gross receipts tax liability of the radio station from advertising and other sales made by the radio station if the radio station during the reporting period includes in its daily programming New Mexico musical acts for at least twenty percent of its time on the air. The tax credit provided in this section may be referred to as the "New Mexico music tax credit".

          B. The gross receipts tax credit provided in this section is created to increase visibility of New Mexico musicians with the public and the music industry and provide enhanced exposure for the music of musicians living or working in New Mexico. The music commission is the responsible agency and shall fulfill the duties assigned to a "responsible agency" in Section 9-15-56 NMSA 1978.

          C. A radio station claiming the New Mexico music tax credit shall track the time dedicated to airing New Mexico musical acts and provide an accounting with the radio station's gross receipts tax report to the department and a copy of the accounting to the music commission no later than the twenty-fifth day of the month following the month in which the programming was aired.

          D. Beginning in 2012, the music commission and the department shall compile an annual report for the revenue stabilization and tax policy committee and the legislative finance committee regarding the use of the New Mexico music tax credit, including the aggregate amount claimed pursuant to that credit, the number of radio stations claiming the credit, the number of jobs created that can be attributed specifically to the New Mexico music tax credit, the total number of hours of programming of New Mexico musical acts in the year compared to the total number of programmed hours reported by radio stations claiming the credit, information regarding the sales or use of music made or produced by New Mexico musicians and any other information deemed necessary by the commission and the department to assess the effectiveness of the credit. The report shall be submitted to the committees no later than November 1 of each year.

          E. Acceptance of the New Mexico music tax credit by a taxpayer is a waiver of confidentiality regarding the information deemed necessary by the music commission or the department to assess the effectiveness of the New Mexico music tax credit that may be included in the report to the committees pursuant to Subsection D of this section.

          F. The revenue stabilization and tax policy committee shall review the effectiveness of the New Mexico music tax credit every four years beginning in 2016.

          G. As used in this section:

                (1) "New Mexico musical act" means music produced in New Mexico, the music made or recorded by musicians living in New Mexico or live musical performances by musicians whose primary place of residence is New Mexico;

                (2) "prepare for transmission" means choose the content, organize the order of presentation, provide play lists for the public and others and transmit with intermittent interruptions for commentary that enriches the programming; and

                (3) "radio station" means a business:

                     (a) that is located in New Mexico;

                     (b) that pays gross receipts tax in New Mexico;

                     (c) that transmits programming from its location in New Mexico to receivers that are radios, computers or other electronic devices; and

                     (d) whose personnel are located in New Mexico and prepare for transmission the programming that is transmitted from the radio station's location in New Mexico."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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