SENATE BILL 662

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

INTRODUCED BY

William H. Payne

AN ACT

RELATING TO TAXATION; EXEMPTING FROM GROSS RECEIPTS TAX THE SALE OF FINE ART SOLD TO AN OUT-OF-STATE BIDDER AT AN AUCTION CONDUCTED IN CERTAIN MUNICIPALITIES.

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] EXEMPTION--GROSS RECEIPTS TAX--SALE OF FINE ART AT AN AUCTION.--

          A. Exempted from the gross receipts tax are receipts from the sale of fine art sold at an auction by an auction house to a bidder that is not a resident of this state and does not have a principal place of business in this state; provided that the auction is conducted within a municipality.

          B. As used in this section:

                (1) "auction" means a sale, conducted by means of oral or written bids, to the highest bidder;

                (2) "auction house" means any person, partnership, corporation, association or group engaged for profit primarily in the business of conducting auctions at which it acts as agent for any seller of works of fine art;

                (3) "fine art" means any original work of visual or graphic art of any media, including any painting, print, drawing, sculpture, craft, object, photograph, hologram or any combination of such media of recognized quality; and

                (4) "municipality" means a municipality with a population of at least sixty-seven thousand five hundred but less than sixty-eight thousand, according to the most recent federal decennial census, that is located within a class A county with a population of at least one hundred forty-four thousand but less than one hundred forty-five thousand, according to the most recent federal decennial census."

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

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