HOUSE BILL 245

53rd legislature - STATE OF NEW MEXICO - second session, 2018

INTRODUCED BY

Linda M. Trujillo and Nate Gentry and Carl Trujillo

AN ACT

RELATING TO TAXATION; CLARIFYING THE DEFINITION IN LAW OF "CONSTRUCTION MATERIAL", AS USED IN THE GROSS RECEIPTS AND COMPENSATING TAX ACT; DECLARING AN EMERGENCY.

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

     SECTION 1. Section 7-9-3.4 NMSA 1978 (being Laws 2003, Chapter 272, Section 5) is amended to read:

     "7-9-3.4. DEFINITIONS--CONSTRUCTION AND CONSTRUCTION MATERIALS.--As used in the Gross Receipts and Compensating Tax Act:

          A. "construction" means:

                (1) the building, altering, repairing or demolishing in the ordinary course of business any:

                     (a) road, highway, bridge, parking area or related project;

                     (b) building, stadium or other structure;

                     (c) airport, subway or similar facility;

                     (d) park, trail, athletic field, golf course or similar facility;

                     (e) dam, reservoir, canal, ditch or similar facility;

                     (f) sewerage or water treatment facility, power generating plant, pump station, natural gas compressing station, gas processing plant, coal gasification plant, refinery, distillery or similar facility;

                     (g) sewerage, water, gas or other pipeline;

                     (h) transmission line;

                     (i) radio, television or other tower;

                     (j) water, oil or other storage tank;

                     (k) shaft, tunnel or other mining appurtenance;

                     (l) microwave station or similar facility;

                     (m) retaining wall, wall, fence, gate or similar structure; or

                     (n) similar work;

                (2) the leveling or clearing of land;

                (3) the excavating of earth;

                (4) the drilling of wells of any type, including seismograph shot holes or core drilling; or

                (5) similar work; and

          B. "construction material":

                (1) means tangible personal property that becomes or is intended to become an ingredient or component part of a construction project; [but "construction material"] and

                (2) does not include tangible personal property, whether removable or non-removable, that:

                     (a) is a replacement fixture when the replacement is not construction; [or]

                     (b) is a replacement part for a fixture; or

                     (c) would be classified for depreciation purposes as three-year property, five-year property, seven-year property or ten-year property, including indirect costs related to the asset basis, by Section 168 of the Internal Revenue Code of 1986, as that section may be amended or renumbered."

     SECTION 2. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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