0001| HOUSE BILL 33
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| DEBBIE A. RODELLA
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0005|
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0006|
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0007|
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0008| FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO TAXATION; EXTENDING THE EXEMPTION FROM THE COAL
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0012| SURTAX IMPOSED ON COAL SOLD PURSUANT TO CERTAIN SALES
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0013| CONTRACTS.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 7-26-6.2 NMSA 1978 (being Laws 1990,
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0017| Chapter 83, Section 1 and also Laws 1990, Chapter 84, Section
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0018| 1, as amended) is amended to read:
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0019| "7-26-6.2. COAL SURTAX EXEMPTION--QUALIFICATION
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0020| REQUIREMENTS.--
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0021| A. The following coal is exempt, until July 1,
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0022| 2009, from the surtax imposed on coal under the provisions of
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0023| Section 7-26-6 NMSA 1978:
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0024| (1) coal sold and delivered pursuant to coal
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0025| sales contracts that are entered into on or after July 1, 1990,
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0001| under which deliveries start after July 1, 1990 and before June
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0002| 30, [1997] 1999, if the sales contracts are not the result
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0003| of:
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0004| (a) a producer and purchaser mutually
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0005| rescinding an existing contract and negotiating a revised
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0006| contract under substantially similar terms and conditions;
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0007| (b) a purchaser establishing an
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0008| affiliated company to purchase coal on behalf of the purchaser;
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0009| or
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0010| (c) a purchaser independently abrogating
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0011| a contract that was in effect on July 1, 1990 with a producer
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0012| for the purpose of securing the benefits of the exemption
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0013| granted by this section; and
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0014| (2) coal sold and delivered pursuant to a
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0015| contract in effect on July 1, 1990 that exceeds the average
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0016| calendar year deliveries under the contract during production
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0017| years 1987, 1988 and 1989 or the highest contract minimum
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0018| during 1987, 1988 and 1989, whichever is greater.
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0019| B. If a contract existing on July 1, 1990 is
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0020| renegotiated between a producer and a purchaser prior to June
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0021| 30, [1997] 1999 and after May 20, 1992 and if that
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0022| renegotiated contract requires the purchaser to take annual
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0023| coal deliveries in excess of the greater of the average
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0024| calendar year deliveries under the contract during production
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0025| years 1987, 1988 and 1989 or the highest contract minimum
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0001| during 1987, 1988 and 1989, the surtax imposed by Subsection B
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0002| of Section 7-26-6 NMSA 1978 shall not apply to such excess
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0003| deliveries for the remaining term of the renegotiated contract
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0004| or until July 1, 2009, whichever occurs first.
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0005| C. For coal exempt under the provisions of
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0006| Paragraph (2) of Subsection A of this section, if the contract
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0007| involved was for a lesser term during the production years
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0008| specified, then actual deliveries shall be annualized to
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0009| establish average calendar year deliveries, and in the event
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0010| that coal sold and delivered in any calendar year after June
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0011| 30, [1997] 1999 falls below the average calendar year
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0012| deliveries during 1987, 1988 and 1989, the exemption shall no
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0013| longer apply unless the deliveries are reduced due to causes
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0014| beyond the reasonable control of either party to the contract.
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0015| D. The taxpayer, prior to taking the exemption
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0016| provided by this section, shall register any contract for the
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0017| sale of coal that qualifies for the exemption from the surtax
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0018| under the provisions of this section with the department on
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0019| forms provided by the secretary. If upon examination of the
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0020| contract or upon audit or inspection of transactions occurring
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0021| under the contract the secretary or the secretary's delegate
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0022| determines that any person who is a party to the contract has
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0023| taken any action to circumvent the intent and purpose of this
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0024| section, the exemption shall be disallowed."
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0025|
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0001| State of New Mexico
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0002| House of Representatives
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0003|
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0004| FORTY-THIRD LEGISLATURE
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0005| FIRST SESSION, 1997
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0006|
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0007|
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0008| March 3, 1997
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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 TAXATION AND REVENUE COMMITTEE, to whom has
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0014| been referred
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0015|
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0016| HOUSE BILL 33
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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.
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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|
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0002| Jerry W. Sandel, Chairman
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0003|
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0004|
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0005| Adopted Not Adopted
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0006|
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0007| (Chief Clerk) (Chief Clerk)
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0008|
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0009| Date
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0010|
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0011| The roll call vote was 10 For 0 Against
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0012| Yes: 10
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0013| Excused: Gonzales, Lujan, Porter
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0014| Absent: None
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0015|
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0016|
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0017| G:\BILLTEXT\BILLW_97\H0033
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0018|
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0019| FORTY-THIRD LEGISLATURE
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0020| FIRST SESSION, 1997
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0021|
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0022|
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0023| March 12, 1997
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0024|
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0025| Mr. President:
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0001|
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0002| Your WAYS & MEANS COMMITTEE, to whom has been referred
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0003|
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0004| HOUSE BILL 33
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0005|
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0006| has had it under consideration and reports same with
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0007| recommendation that it DO PASS, and thence referred to the
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0008| FINANCE COMMITTEE.
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0009|
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0010| Respectfully submitted,
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0011|
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0012|
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0013|
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0014|
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0015| __________________________________
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0016| Carlos R. Cisneros, Chairman
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0017|
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0018|
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0019|
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0020| Adopted_______________________ Not
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0021| Adopted_______________________
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0022| (Chief Clerk) (Chief Clerk)
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0023|
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0024|
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0025| Date ________________________
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0001|
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0002|
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0003| The roll call vote was 6 For 0 Against
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0004| Yes: 6
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0005| No: 0
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0006| Excused: Kidd, Leavell, McSorley
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0007| Absent: None
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0008|
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0009|
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0010| H0033WM1
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0011|
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0012|
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0013|
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0014| FORTY-THIRD LEGISLATURE
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0015| FIRST SESSION, 1997
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0016|
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0017|
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0018| March 15, 1997
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0019|
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0020| Mr. President:
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0021|
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0022| Your FINANCE COMMITTEE, to whom has been referred
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0023|
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0024| HOUSE BILL 33
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0025|
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0001| has had it under consideration and reports same with
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0002| recommendation that it DO PASS.
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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| Ben D. Altamirano, Chairman
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0011|
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0012|
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0013|
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0014| Adopted_______________________ Not
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0015| Adopted_______________________
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0016| (Chief Clerk) (Chief Clerk)
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0017|
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0018|
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0019|
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0020| Date ________________________
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0021|
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0022|
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0023| The roll call vote was 6 For 0 Against
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0024| Yes: 6
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0025| No: None
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0001| Excused: Carraro, Ingle, Lyons, McKibben, Romero
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0002| Absent: None
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0003|
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0004|
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0005| H0033FC1
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