0001| HOUSE BILL 1194 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| LISA L. LUTZ | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO TAXATION; AMENDING THE LEASED VEHICLE GROSS | 0012| RECEIPTS TAX ACT TO EXEMPT FROM THE LEASED VEHICLE SURCHARGE | 0013| THE LEASING OF CERTAIN RENTAL VEHICLES. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 7-14A-2 NMSA 1978 (being Laws 1991, | 0017| Chapter 197, Section 6, as amended) is amended to read: | 0018| "7-14A-2. DEFINITIONS.--As used in the Leased Vehicle | 0019| Gross Receipts Tax Act: | 0020| A. "department" means the taxation and revenue | 0021| department, the secretary of taxation and revenue or any | 0022| employee of the department exercising authority lawfully | 0023| delegated to that employee by the secretary; | 0024| B. "engaging in business" means carrying on or | 0025| causing to be carried on the leasing of vehicles with the | 0001| purpose of direct or indirect benefit; | 0002| C. "gross receipts" means the total amount of money | 0003| or the value of other consideration received from leasing | 0004| vehicles used in New Mexico, but excludes cash discounts | 0005| allowed and taken, leased vehicle gross receipts tax payable on | 0006| transactions for the reporting period, gross receipts tax | 0007| payable pursuant to the Gross Receipts and Compensating Tax Act | 0008| on transactions for the reporting period and taxes imposed | 0009| pursuant to the provisions of any local option gross receipts | 0010| tax, as that term is defined in the Tax Administration Act, | 0011| that is payable on transactions for the reporting period and | 0012| any type of time-price differential. Also excluded from "gross | 0013| receipts" are any gross receipts or sales taxes imposed by an | 0014| Indian nation, tribe or pueblo, provided that the tax is | 0015| approved, if approval is required by federal law or regulation, | 0016| by the secretary of the interior of the United States, and | 0017| provided further that the gross receipts or sales tax imposed | 0018| by the Indian nation, tribe or pueblo provides a reciprocal | 0019| exclusion for gross receipts, sales or gross receipts-based | 0020| excise taxes imposed by the state or its political | 0021| subdivisions. In an exchange in which the money or other | 0022| consideration received does not represent the value of the | 0023| lease of the vehicle, "gross receipts" means the reasonable | 0024| value of the lease of the vehicle. When the leasing of | 0025| vehicles is made under a leasing contract, the seller or lessor | 0001| may elect to treat all receipts under those contracts as gross | 0002| receipts as and when the payments are actually received. | 0003| "Gross receipts" also includes amounts paid by members of any | 0004| cooperative association or similar organization for the lease | 0005| of vehicles by that organization; | 0006| D. "hardship rental" means the lease of a vehicle | 0007| by the owner of a damaged or stolen vehicle to replace | 0008| temporarily that damaged or stolen vehicle; | 0009| [D.] E. "leasing" means any arrangement | 0010| whereby, for a consideration, a vehicle without a driver | 0011| furnished by the lessor or owner is employed for or by any | 0012| person other than the owner of the vehicle for a period of not | 0013| more than six months; | 0014| [E.] F. "person" means any individual, estate, | 0015| trust, receiver, cooperative association, club, corporation, | 0016| company, firm, partnership, joint venture, syndicate or other | 0017| entity; and | 0018| [F.] G. "vehicle" means a passenger automobile | 0019| designed to accommodate six or fewer adult human beings that is | 0020| part of a fleet of five or more passenger automobiles owned by | 0021| the same person." | 0022| Section 2. Section 7-14A-3.1 NMSA 1978 (being Laws 1993, | 0023| Chapter 359, Section 1) is amended to read: | 0024| "7-14A-3.1. IMPOSITION AND RATE--LEASED VEHICLE | 0025| SURCHARGE.-- | 0001| A. Except as provided in Subsection B of this | 0002| section, there is imposed a surcharge on the leasing of a | 0003| vehicle to another person by a person engaging in business in | 0004| New Mexico if the lease is subject to the leased vehicle gross | 0005| receipts tax. The amount of this surcharge is two dollars | 0006| ($2.00) for each day each vehicle is leased by the person. The | 0007| surcharge may be referred to as the "leased vehicle surcharge". | 0008| B. No surcharge shall be imposed on the lease of a | 0009| vehicle if the person leasing the vehicle can present evidence | 0010| satisfactory to the person leasing the vehicle that it is a | 0011| hardship rental. Satisfactory evidence shall include | 0012| certification or other evidence from an insurer, car repair | 0013| shop or law enforcement agency of the damage or theft." | 0014| Section 3. EFFECTIVE DATE.--The effective date of the | 0015| provisions of this act is July 1, 1997. | 0016|  |