0001| HOUSE BILL 1194
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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| LISA L. LUTZ
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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; AMENDING THE LEASED VEHICLE GROSS
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0012| RECEIPTS TAX ACT TO EXEMPT FROM THE LEASED VEHICLE SURCHARGE
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0013| THE LEASING OF CERTAIN RENTAL VEHICLES.
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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 7-14A-2 NMSA 1978 (being Laws 1991,
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0017| Chapter 197, Section 6, as amended) is amended to read:
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0018| "7-14A-2. DEFINITIONS.--As used in the Leased Vehicle
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0019| Gross Receipts Tax Act:
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0020| A. "department" means the taxation and revenue
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0021| department, the secretary of taxation and revenue or any
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0022| employee of the department exercising authority lawfully
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0023| delegated to that employee by the secretary;
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0024| B. "engaging in business" means carrying on or
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0025| causing to be carried on the leasing of vehicles with the
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0001| purpose of direct or indirect benefit;
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0002| C. "gross receipts" means the total amount of money
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0003| or the value of other consideration received from leasing
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0004| vehicles used in New Mexico, but excludes cash discounts
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0005| allowed and taken, leased vehicle gross receipts tax payable on
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0006| transactions for the reporting period, gross receipts tax
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0007| payable pursuant to the Gross Receipts and Compensating Tax Act
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0008| on transactions for the reporting period and taxes imposed
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0009| pursuant to the provisions of any local option gross receipts
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0010| tax, as that term is defined in the Tax Administration Act,
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0011| that is payable on transactions for the reporting period and
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0012| any type of time-price differential. Also excluded from "gross
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0013| receipts" are any gross receipts or sales taxes imposed by an
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0014| Indian nation, tribe or pueblo, provided that the tax is
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0015| approved, if approval is required by federal law or regulation,
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0016| by the secretary of the interior of the United States, and
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0017| provided further that the gross receipts or sales tax imposed
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0018| by the Indian nation, tribe or pueblo provides a reciprocal
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0019| exclusion for gross receipts, sales or gross receipts-based
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0020| excise taxes imposed by the state or its political
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0021| subdivisions. In an exchange in which the money or other
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0022| consideration received does not represent the value of the
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0023| lease of the vehicle, "gross receipts" means the reasonable
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0024| value of the lease of the vehicle. When the leasing of
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0025| vehicles is made under a leasing contract, the seller or lessor
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0001| may elect to treat all receipts under those contracts as gross
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0002| receipts as and when the payments are actually received.
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0003| "Gross receipts" also includes amounts paid by members of any
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0004| cooperative association or similar organization for the lease
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0005| of vehicles by that organization;
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0006| D. "hardship rental" means the lease of a vehicle
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0007| by the owner of a damaged or stolen vehicle to replace
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0008| temporarily that damaged or stolen vehicle;
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0009| [D.] E. "leasing" means any arrangement
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0010| whereby, for a consideration, a vehicle without a driver
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0011| furnished by the lessor or owner is employed for or by any
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0012| person other than the owner of the vehicle for a period of not
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0013| more than six months;
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0014| [E.] F. "person" means any individual, estate,
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0015| trust, receiver, cooperative association, club, corporation,
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0016| company, firm, partnership, joint venture, syndicate or other
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0017| entity; and
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0018| [F.] G. "vehicle" means a passenger automobile
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0019| designed to accommodate six or fewer adult human beings that is
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0020| part of a fleet of five or more passenger automobiles owned by
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0021| the same person."
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0022| Section 2. Section 7-14A-3.1 NMSA 1978 (being Laws 1993,
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0023| Chapter 359, Section 1) is amended to read:
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0024| "7-14A-3.1. IMPOSITION AND RATE--LEASED VEHICLE
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0025| SURCHARGE.--
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0001| A. Except as provided in Subsection B of this
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0002| section, there is imposed a surcharge on the leasing of a
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0003| vehicle to another person by a person engaging in business in
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0004| New Mexico if the lease is subject to the leased vehicle gross
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0005| receipts tax. The amount of this surcharge is two dollars
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0006| ($2.00) for each day each vehicle is leased by the person. The
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0007| surcharge may be referred to as the "leased vehicle surcharge".
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0008| B. No surcharge shall be imposed on the lease of a
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0009| vehicle if the person leasing the vehicle can present evidence
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0010| satisfactory to the person leasing the vehicle that it is a
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0011| hardship rental. Satisfactory evidence shall include
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0012| certification or other evidence from an insurer, car repair
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0013| shop or law enforcement agency of the damage or theft."
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0014| Section 3. EFFECTIVE DATE.--The effective date of the
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0015| provisions of this act is July 1, 1997.
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0016|
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