HOUSE BILL 301

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

INTRODUCED BY

Sarah Maestas Barnes

AN ACT

RELATING TO TAXATION; PROVIDING A LIMITED-PERIOD DEDUCTION FROM GROSS RECEIPTS FOR OUTDOOR WATER-CONSERVATION PRODUCTS.

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--SALES OF WATER-SAVING TANGIBLE PERSONAL PROPERTY--LIMITED PERIOD.--

          A. Receipts from the sale at retail of water-saving tangible personal property may be deducted from gross receipts if the sale occurs during the period beginning at midnight on March 1 and ending at midnight on March 8.

          B. The purpose of the deduction provided by this section is to mitigate the effects of drought in New Mexico by creating an incentive for private property owners to reduce their outdoor water consumption through the use of products designed to decrease water waste.

          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 includes 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 2016, the department shall compile and present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost and benefit to the state of the deduction.

          E. For the purposes of this section, "water-saving tangible personal property":

                (1) means products:

                     (a) intended for use on private, shared or communal property and not intended for business use, trade or resale; and

                     (b) whose use or planting in outdoor residential urban properties may result in: 1) water conservation or ground water retention; 2) water table recharge; or 3) a decrease in ambient air temperature that limits water evaporation; and

                (2) includes:

                     (a) drought-tolerant live plants, turf and grass;

                     (b) soaker or drip-irrigation hosing;

                     (c) moisture controls for sprinkler or irrigation systems;

                     (d) mulches and soils;

                     (e) rain barrels and alternative rain and moisture collection systems;

                     (f) permeable ground cover surfaces that allow water to reach underground basins, aquifers or water collection points;

                     (g) plant and grass seeds coated with water-saving surfactants; and

                     (h) water-saving surfactants."

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