0001| HOUSE BILL 699
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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| PATSY G. TRUJILLO
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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| AN ACT
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0011| RELATING TO TAXATION; INCREASING THE RATE OF THE CIGARETTE TAX;
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0012| REDUCING THE RATES OF THE GROSS RECEIPTS TAX AND THE
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0013| COMPENSATING TAX; ADJUSTING DISTRIBUTIONS; AMENDING SECTIONS OF
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0014| THE NMSA 1978.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. Section 7-1-6.11 NMSA 1978 (being Laws 1983,
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0018| Chapter 211, Section 16, as amended) is amended to read:
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0019| "7-1-6.11. DISTRIBUTIONS OF CIGARETTE TAXES.--
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0020| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0021| 1978 shall be made to the county and municipality recreational
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0022| fund in an amount equal to [four and three-quarters] one and
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0023| eighty-five-hundredths percent of the net receipts, exclusive
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0024| of penalties and interest, attributable to the cigarette tax.
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0025| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0001| 1978 shall be made to the county and municipal cigarette tax
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0002| fund in an amount equal to [nine and one-half] three and
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0003| seven- tenths percent of the net receipts, exclusive of
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0004| penalties and interest, attributable to the cigarette tax.
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0005| C. A distribution pursuant to Section 7-1-6.1 NMSA
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0006| 1978 shall be made to the cancer center at the university of
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0007| New Mexico school of medicine in an amount equal to [four and
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three-quarters] one and eighty-five-hundredths percent of
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0009| the net receipts, exclusive of penalties and interest,
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0010| attributable to the cigarette tax.
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0011| D. A distribution pursuant to Section 7-1-6.1 NMSA
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0012| 1978 shall be made to the New Mexico finance authority in an
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0013| amount equal to [seven and one-eighth] two and seventy-
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0014| seven- hundredths percent of the net receipts, exclusive of
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0015| penalties and interest, attributable to the cigarette tax."
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0016| Section 2. Section 7-9-4 NMSA 1978 (being Laws 1966,
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0017| Chapter 47, Section 4, as amended) is amended to read:
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0018| "7-9-4. IMPOSITION AND RATE OF TAX--DENOMINATION AS
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0019| "GROSS RECEIPTS TAX".--
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0020| A. For the privilege of engaging in business, an
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0021| excise tax equal to [five] four and seven-eighths percent
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0022| of gross receipts is imposed on any person engaging in business
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0023| in New Mexico.
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0024| B. The tax imposed by this section shall be
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0025| referred to as the "gross receipts tax"."
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0001| Section 3. Section 7-9-7 NMSA 1978 (being Laws 1966,
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0002| Chapter 47, Section 7, as amended) is amended to read:
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0003| "7-9-7. IMPOSITION AND RATE OF TAX--DENOMINATION AS
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0004| "COMPENSATING TAX".--
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0005| A. For the privilege of using tangible property in
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0006| New Mexico, there is imposed on the person using the property
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0007| an excise tax equal to [five] four and seven-eighths
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0008| percent of the value of tangible property that was:
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0009| (1) manufactured by the person using the
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0010| property in the state;
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0011| (2) acquired outside this state as the result
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0012| of a transaction that would have been subject to the gross
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0013| receipts tax had it occurred within this state; or
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0014| (3) acquired as the result of a transaction
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0015| [which] that was not initially subject to the compensating
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0016| tax imposed by Paragraph (2) of this subsection or the gross
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0017| receipts tax but which transaction, because of the buyer's
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0018| subsequent use of the property, should have been subject to the
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0019| compensating tax imposed by Paragraph (2) of this subsection or
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0020| the gross receipts tax.
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0021| B. For the purpose of Subsection A of this section,
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0022| value of tangible property shall be the adjusted basis of the
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0023| property for federal income tax purposes determined as of the
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0024| time of acquisition or introduction into this state or of
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0025| conversion to use, whichever is later. If no adjusted basis
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0001| for federal income tax purposes is established for the
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0002| property, a reasonable value of the property shall be used.
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0003| C. For the privilege of using services rendered in
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0004| New Mexico, there is imposed on the person using such services
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0005| an excise tax equal to five percent of the value of the
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0006| services at the time they were rendered. The services, to be
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0007| taxable under this subsection, must have been rendered as the
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0008| result of a transaction [which] that was not initially
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0009| subject to the gross receipts tax but which transaction,
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0010| because of the buyer's subsequent use of the services, should
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0011| have been subject to the gross receipts tax.
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0012| D. The tax imposed by this section shall be
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0013| referred to as the "compensating tax"."
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0014| Section 4. Section 7-12-3 NMSA 1978 (being Laws 1971,
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0015| Chapter 77, Section 3, as amended) is amended to read:
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0016| "7-12-3. EXCISE TAX ON CIGARETTES--RATES.--
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0017| A. For the privilege of selling, giving or
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0018| consuming cigarettes in New Mexico, there is levied an excise
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0019| tax at the rate of [one and five hundredths cents ($.0105)]
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0020| three and five- hundredths cents ($.0305) for each cigarette
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0021| sold, given or consumed in this state.
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0022| B. The tax imposed by this section shall be
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0023| referred to as the "cigarette tax"."
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0024| Section 5. EFFECTIVE DATE.--
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0025| A. The effective date of the provisions of Section
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0001| 1 of this act is August 1, 1997.
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0002| B. The effective date of the provisions of Sections
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0003| 2 through 4 of this act is July 1, 1997.
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0004|
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