HOUSE BILL 246

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

David E. Adkins

AN ACT

RELATING TO TAXATION; PROVIDING A DEDUCTION FROM GROSS RECEIPTS FOR RETAIL SALES BY A BUSINESS AND FOR FOOD SALES BY A RESTAURANT IF THE BUSINESS OR RESTAURANT HAS AN AVERAGE REVENUE OF LESS THAN ONE MILLION DOLLARS ($1,000,000).

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] DEDUCTION--GROSS RECEIPTS TAX--RETAIL SALES BY CERTAIN BUSINESSES.--

          A. Prior to July 1, 2019, receipts from the sale at retail of tangible personal property or from the sale of food at a restaurant may be deducted if:

                (1) the sale occurs during the period beginning at 12:01 a.m. on the first Saturday after thanksgiving day and ending at midnight on the same Saturday; and

                (2) the sale is made by a seller that, in the most recent five years, has an average of gross annual revenues of less than one million dollars ($1,000,000) per year.             B. The purpose of the deduction provided by this section is to increase sales at small, local businesses and restaurants.

          C. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.

          D. The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the deduction. Beginning in 2018, the department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the deduction and whether the deduction is performing the purpose for which it was created.

          E. As used in this section, "restaurant" means an establishment where meals are prepared and may be served for on-premises consumption and that has a kitchen and the employees necessary for preparing, cooking and serving meals."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.

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