0001| HOUSE BILL 57
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| PAULINE K. GUBBELS
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0006|
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0007|
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0008|
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0009| FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
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0010|
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0011| AN ACT
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0012| RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION
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0013| FOR RECEIPTS OF CERTAIN NONPROFIT ORGANIZATIONS; PROVIDING FOR
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0014| REPORTING AND PAYMENT OF TAXES; AMENDING AND ENACTING SECTIONS
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0015| OF THE NMSA 1978.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. Section 7-1-15 NMSA 1978 (being Laws 1969,
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0019| Chapter 31, Section 1, as amended) is amended to read:
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0020| "7-1-15. SECRETARY MAY SET TAX REPORTING AND PAYMENT
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0021| INTERVALS.--The secretary may, pursuant to regulation, allow
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0022| taxpayers with an anticipated tax liability of less than two
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0023| hundred dollars ($200) a month or taxpayers who claim gross
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0024| receipts deductions pursuant to Section 7-9-85 or 7-9-85.1 NMSA
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0025| 1978 to report and pay taxes at intervals [which] that the
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0001| secretary may specify. However, unless specifically permitted
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0002| by law, an interval shall not exceed six months. The secretary
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0003| may permit annual reporting and payment of taxes by taxpayers
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0004| who claim gross receipts deductions pursuant to Section 7-9-85
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0005| or 7-9-85.1 NMSA 1978."
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0006| Section 2. Section 7-9-39 NMSA 1978 (being Laws 1969,
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0007| Chapter 144, Section 32, as amended) is amended to read:
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0008| "7-9-39. EXEMPTION--GROSS RECEIPTS TAX--FEES FROM SOCIAL
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0009| ORGANIZATIONS.--
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0010| A. Exempted from the gross receipts tax are the
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0011| receipts from dues and registration fees of nonprofit social,
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0012| fraternal, political, trade, labor or professional organizations
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0013| and business leagues if the receipts are not eligible for
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0014| deduction from gross receipts pursuant to Section 7-9-85.1 NMSA
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0015| 1978.
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0016| B. For the purposes of this section:
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0017| (1) "dues" means amounts that a member of an
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0018| organization pays at recurring intervals to retain membership in
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0019| an organization where such amounts are used for the general
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0020| maintenance and upkeep of the organization; and
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0021| (2) "registration fees" means amounts paid by
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0022| persons to attend a specific event sponsored by an organization
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0023| to defray the cost of the event."
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0024| Section 3. Section 7-9-85 NMSA 1978 (being Laws 1994,
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0025| Chapter 43, Section 1) is amended to read:
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0001| "7-9-85. DEDUCTION--GROSS RECEIPTS TAX--CERTAIN
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0002| ORGANIZATION FUNDRAISERS.--Receipts from not more than two
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0003| fundraising events annually conducted by an organization that is
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0004| exempt from the federal income tax as an organization described
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0005| in Section 501(c), other than an organization described in
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0006| Section 501(c)(3), of the United States Internal Revenue Code of
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0007| 1986, as amended, may be deducted from gross receipts if the
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0008| receipts of the organization are not eligible for deduction from
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0009| gross receipts pursuant to Section 7-9-85.1 NMSA 1978."
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0010| Section 4. A new section of the Gross Receipts and
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0011| Compensating Tax Act, Section 7-9-85.1 NMSA 1978, is enacted to
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0012| read:
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0013| "7-9-85.1. [NEW MATERIAL] DEDUCTION--GROSS RECEIPTS
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0014| TAX--RECEIPTS OF CERTAIN NONPROFIT ORGANIZATIONS.--
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0015| A. Receipts of an organization may be deducted from
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0016| gross receipts if the organization:
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0017| (1) is exempt from the federal income tax as an
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0018| organization described in Section 501(c), other than:
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0019| (a) an organization described in Section
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0020| 501(c)(3) of the United States Internal Revenue Code of 1986, as
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0021| amended; or
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0022| (b) an organization that carries on
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0023| chamber of commerce, visitor bureau and convention bureau
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0024| functions and is described in Section 501(c)(6) of the United
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0025| States Internal Revenue Code of 1986, as amended;
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0001| (2) has gross receipts for the qualification
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0002| year of less than eighty thousand dollars ($80,000); and
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0003| (3) incurred less than ten percent of its
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0004| receipts in the qualification year for wages and salaries of
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0005| organization personnel.
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0006| B. In any period for which the receipts of an
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0007| organization may be deducted pursuant to this section, the
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0008| organization may not claim nor may the department allow a
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0009| deduction of the organization's receipts during the period under
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0010| Section 7-9-85 NMSA 1978.
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0011| C. For the purposes of this section, the term
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0012| "qualification year" means the organization's taxable year for
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0013| federal income tax purposes ending within six months of the
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0014| beginning of either the calendar or state fiscal year during
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0015| which calendar or fiscal year the organization claims or intends
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0016| to claim the deduction provided by this section."
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0017| Section 5. EFFECTIVE DATE.--The effective date of the
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0018| provisions of this act is July 1, 1996.
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0019| - 4 -
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0020|
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0021|
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0022|
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0023|
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0024| State of New Mexico
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0025| House of Representatives
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0001|
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0002| FORTY-SECOND LEGISLATURE
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0003| SECOND SESSION, 1996
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0004|
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0005|
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0006| February 7, 1996
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0007|
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0008|
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0009| Mr. Speaker:
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0010|
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0011| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0012| been referred
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0013|
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0014| HOUSE BILL 57
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0015|
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0016| has had it under consideration and reports same with
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0017| recommendation that it DO PASS, amended as follows:
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0018|
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0019| 1. On page 3, line 14, after "Receipts" insert "of not more
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0020| than eighty thousand dollars ($80,000)".
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0021|
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0022| 2. On page 3, line 17, after "(c)" strike the remainder of
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0023| the line and strike all of lines 18 through 24 and insert in lieu
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0024| thereof "(4) or 501(c)(10) of the United States Internal Revenue
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0025| Code of 1986, as amended;".,
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0001|
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0002| and thence referred to the APPROPRIATIONS AND FINANCE
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0003| COMMITTEE.
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0004|
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0005| Respectfully submitted,
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0006|
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0007|
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0008|
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0009|
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0010| Jerry W. Sandel, Chairman
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0011|
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0012|
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0013| Adopted Not Adopted
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0014|
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0015| (Chief Clerk) (Chief Clerk)
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0016|
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0017| Date
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0018|
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0019| The roll call vote was 9 For 0 Against
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0020| Yes: 9
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0021| Excused: Gallegos, Gonzales, Hawkins, Lujan
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0022| Absent: None
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0023|
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0024|
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0025| .111880.2
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0001| H0057TR1 State of New Mexico
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0002| House of Representatives
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0003|
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0004| FORTY-SECOND LEGISLATURE
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0005| SECOND SESSION, 1996
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0006|
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0007|
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0008| February 10, 1996
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0009|
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0010|
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0011| Mr. Speaker:
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0012|
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0013| Your APPROPRIATIONS AND FINANCE COMMITTEE, to
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0014| whom has been referred
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0015|
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0016| HOUSE BILL 57, as amended
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0017|
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0018| has had it under consideration and reports same with
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0019| recommendation that it DO PASS, amended as follows:
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0020|
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0021| 1. On page 4, between lines 4 and 5, insert the following:
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0022|
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0023| "B. Receipts from gambling, except paper bingo and
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0024| raffles, are not deductible even if total receipts are less than
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0025| eighty thousand dollars ($80,000).".
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0001|
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0002| 2. Reletter the succeeding subsections accordingly.
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0003|
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0004| Respectfully submitted,
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| Max Coll, Chairman
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0011|
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0012|
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0013| Adopted Not Adopted
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0014|
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0015| (Chief Clerk) (Chief Clerk)
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0016|
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0017| Date
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0018|
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0019| The roll call vote was 8 For 4 Against
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0020| Yes: 8
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0021| No: Gentry, Martinez, Reyes, Watchman
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0022| Excused: Bird, Casey, Light, Picraux, Saavedra, Wallace
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0023| Absent: None
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0024|
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0025|
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0001|
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0002| H0057AF1
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0003|
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0004| FORTY-SECOND LEGISLATURE
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0005| SECOND SESSION, 1996
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0006|
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0007|
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0008| February 14, 1996
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0009|
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0010| Mr. President:
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0011|
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0012| Your WAYS AND MEANS COMMITTEE, to whom has been
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0013| referred
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0014|
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0015| HOUSE BILL 57, as amended
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0016|
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0017| has had it under consideration and reports same with
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0018| recommendation that it DO PASS, and thence referred to the
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0019| FINANCE COMMITTEE.
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0020|
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0021| Respectfully submitted,
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0022|
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0023|
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0024|
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0025| __________________________________
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0001| TITO D. CHAVEZ, Chairman
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0002|
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0003|
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0004|
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0005| Adopted_______________________ Not Adopted_______________________
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0006| (Chief Clerk) (Chief Clerk)
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0007|
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0008|
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0009| Date ________________________
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0010|
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0011|
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0012| The roll call vote was 5 For 0 Against
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0013| Yes: 5
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0014| No: 0
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0015| Excused: Campos, Riley, Wiener
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0016| Absent: None
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0017|
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0018|
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0019| H0057WM1
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0020|
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0021|
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0022|
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0023| FORTY-SECOND LEGISLATURE
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0024| SECOND SESSION, 1996
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0025|
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0001|
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0002| February 14, 1996
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0003|
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0004| Mr. President:
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0005|
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0006| Your FINANCE COMMITTEE, to whom has been referred
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0007|
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0008| HOUSE BILL 57, as amended
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0009|
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0010| has had it under consideration and reports same with
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0011| recommendation that it DO PASS.
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0012|
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0013| Respectfully submitted,
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0014|
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0015|
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0016|
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0017| __________________________________
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0018| Ben D. Altamirano, Chairman
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0019|
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0020|
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0021|
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0022| Adopted_______________________ Not Adopted_______________________
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0023| (Chief Clerk) (Chief Clerk)
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0024|
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0025|
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0001|
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0002| Date ________________________
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0003|
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0004|
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0005| The roll call vote was 8 For 0 Against
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0006| Yes: 8
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0007| No: 0
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0008| Excused: Donisthorpe, Duran, Ingle, Kidd, Kysar
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0009| Absent: None
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0010|
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0011|
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0012| H0057FC1
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0013|
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