0001| HOUSE BILL 1201
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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| LUCIANO "LUCKY" VARELA
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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 GROSS RECEIPTS AND
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0012| COMPENSATING TAX ACT TO ALLOW SELLERS A SIXTY-DAY GRACE PERIOD
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0013| TO OBTAIN REQUIRED NONTAXABLE TRANSACTION CERTIFICATES.
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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 7-9-43 NMSA 1978 (being Laws 1966,
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0017| Chapter 47, Section 13, as amended by Laws 1994, Chapter 94,
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0018| Section 1 and also by Laws 1994, Chapter 98, Section 1) is
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0019| amended to read:
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0020| "7-9-43. NONTAXABLE TRANSACTION CERTIFICATES AND OTHER
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0021| EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS--RENEWAL.--
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0022| A. The provisions of this subsection apply to
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0023| transactions occurring on or after July 1, 1992. All
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0024| nontaxable transaction certificates of the appropriate series
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0025| executed by buyers or lessees [shall] should be in the
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0001| possession of the seller or lessor for nontaxable transactions
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0002| at the time the return is due for receipts from the
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0003| transactions. If the seller or lessor [does not demonstrate
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possession of required nontaxable transaction certificates to
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the department at the commencement of an audit or demonstrate]
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0006| is not in possession of the required nontaxable transaction
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0007| certificates within sixty days from the date that the notice
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0008| requiring possession of these nontaxable transaction
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0009| certificates is given the seller or lessor by the department
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0010| [that the seller or lessor was in possession of such
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certificates at the time receipts from the transactions were
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required to be reported], deductions claimed by the seller or
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0013| lessor that require delivery of these nontaxable transaction
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0014| certificates shall be disallowed. The nontaxable transaction
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0015| certificates shall contain the information and be in a form
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0016| prescribed by the department. Only buyers or lessees who have
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0017| a registration number or have applied for a registration number
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0018| and have not been refused one under Subsection C of Section
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0019| 7-1-12 NMSA 1978 shall execute nontaxable transaction
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0020| certificates. If the seller or lessor has been given an
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0021| identification number for tax purposes by the department, the
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0022| seller or lessor shall disclose that identification number to
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0023| the buyer or lessee prior to or upon acceptance of a nontaxable
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0024| transaction certificate. When the seller or lessor accepts a
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0025| nontaxable transaction certificate within the required time and
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0001| in good faith that the buyer or lessee will employ the property
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0002| or service transferred in a nontaxable manner, the properly
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0003| executed nontaxable transaction certificate shall be conclusive
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0004| evidence, and the only material evidence, that the proceeds
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0005| from the transaction are deductible from the seller's or
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0006| lessor's gross receipts.
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0007| B. The provisions of this subsection apply only to
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0008| transactions occurring on or after July 1, 1992. Properly
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0009| executed documents required to support the deductions provided
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0010| in Sections 7-9-57, 7-9-58 and 7-9-74 NMSA 1978 [shall]
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0011| should be in the possession of the seller at the time the
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0012| return is due for receipts from the transactions. If the
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0013| seller [does not demonstrate possession of required documents
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to the department at the commencement of an audit or
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demonstrate] is not in possession of these documents within
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0016| sixty days from the date that the notice requiring possession
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0017| of these documents is given to the seller by the department
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0018| [that the seller was in possession of such documents at the
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time receipts from the transactions were required to be
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reported], deductions claimed by the seller or lessor that
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0021| require delivery of these documents shall be disallowed. These
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0022| documents shall contain the information and be in a form
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0023| prescribed by the department. When the seller accepts these
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0024| documents within the required time and in good faith that the
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0025| buyer will employ the property or service transferred in a
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0001| nontaxable manner, the properly executed documents shall be
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0002| conclusive evidence, and the only material evidence, that the
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0003| proceeds from the transaction are deductible from the seller's
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0004| gross receipts.
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0005| C. Notice, as used in this section, is sufficient
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0006| if the notice is mailed or served as provided in Subsection A
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0007| of Section 7-1-9 NMSA 1978. Notice by the department under
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0008| this section shall not be given prior to the commencement of an
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0009| audit of the seller required to be in possession of the
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0010| documents.
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0011| D. On January 1, 1992, every nontaxable transaction
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0012| certificate, except for nontaxable transaction certificates of
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0013| the series applicable to the ten-year period beginning January
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0014| 1, 1992 and issued by the department prior to that date, is
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0015| void with respect to transactions after December 31, 1991. The
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0016| department shall issue separate series of nontaxable
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0017| transaction certificates for the ten-year period beginning
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0018| January 1, 1992 and for each ten-year period beginning on
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0019| January 1 of every tenth year succeeding calendar year 1992. A
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0020| series of nontaxable transaction certificates issued by the
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0021| department for any ten-year period may be executed by buyers or
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0022| lessees for transactions occurring within that ten-year period
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0023| but are not valid for transactions occurring before or after
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0024| that ten-year period [except that certificates issued by the
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department with respect to the ten-year period beginning
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January 1, 1992 are also valid for transactions prior to
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January 1, 1992]. For administrative convenience, the
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0003| department may accept and approve qualifying applications for
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0004| the privilege of executing nontaxable transaction certificates
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0005| and pre-issue certificates of any series within the six-month
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0006| period immediately preceding the beginning of the ten-year
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0007| period to which the series of nontaxable transaction
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0008| certificates applies.
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0009| E. To exercise the privilege of executing
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0010| appropriate nontaxable transaction certificates [that may be
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effective on or after January 1, 1992], a buyer or lessee
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0012| shall apply to the department for permission to execute
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0013| nontaxable transaction certificates. [On and after July 1,
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1993,] If a person is shown on the department's records to be
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0015| a delinquent taxpayer, the department may refuse to approve the
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0016| application of the person until the person is no longer shown
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0017| to be a delinquent taxpayer, and the taxpayer may protest that
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0018| refusal pursuant to Section 7-1-24 NMSA 1978. Upon the
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0019| department's approval of the application, the buyer or lessee
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0020| may request appropriate nontaxable transaction certificates for
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0021| execution by the buyer or lessee; provided that [on and after
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July 1, 1993,] if a person is shown on the department's
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0023| records to be a delinquent taxpayer, the department may refuse
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0024| to issue nontaxable transaction certificates to the person
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0025| until the person is no longer shown to be a delinquent
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0001| taxpayer, and the taxpayer may protest that refusal pursuant to
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0002| Section 7-1-24 NMSA 1978. The department may require any buyer
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0003| or lessee requesting and receiving nontaxable transaction
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0004| certificates for execution by that buyer or lessee to report to
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0005| the department annually the names, addresses and identification
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0006| numbers assigned by the department of the sellers and lessors
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0007| to whom they have delivered nontaxable transaction
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0008| certificates. The department may require any seller or lessor
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0009| engaged in business in New Mexico to report to the department
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0010| annually the names, addresses and federal employer
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0011| identification numbers or state identification numbers for tax
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0012| purposes issued by the department of the buyers or lessees from
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0013| whom the seller or lessor has accepted nontaxable transaction
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0014| certificates."
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0015| Section 2. TEMPORARY PROVISION.--For transactions
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0016| occurring between July 1, 1992 and the effective date of this
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0017| act, a seller or lessor who within sixty days after the
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0018| effective date of this act obtains a required nontaxable
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0019| transaction certificate for a nontaxable transaction shall be
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0020| deemed to have complied with the requirements of Subsection A
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0021| of Section 7-9-43 NMSA 1978 with regard to possession of the
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0022| required nontaxable transaction certificate for that
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0023| transaction. This provision shall apply despite the seller or
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0024| lessor having previously been denied a deduction for that
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0025| transaction because of failure to timely possess the required
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0001| nontaxable transaction certificate.
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0002| Section 3. EFFECTIVE DATE.--The effective date of the
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0003| provisions of this act is July 1, 1997.
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0004| State of New Mexico
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0005| House of Representatives
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0006|
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0007| FORTY-THIRD LEGISLATURE
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0008| FIRST SESSION, 1997
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0009|
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0010|
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0011| March 12, 1997
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0012|
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0013|
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0014| Mr. Speaker:
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0015|
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0016| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0017| been referred
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0018|
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0019| HOUSE BILL 1201
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0020|
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0021| has had it under consideration and reports same with
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0022| recommendation that it DO PASS, amended as follows:
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0023|
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0024| 1. On page 1, lines 22 and 23, after "A." strike the first
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0025| sentence in its entirety.
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0001|
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0002| 2. On page 3, lines 6 and 7, after "B." strike the first
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0003| sentence in its entirety.
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0004|
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0005| 3. On page 4, line 20, strike "before or".
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0006|
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0007| 4. On page 6, lines 10 through 21, strike Section 2 in its
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0008| entirety.
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0009|
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0010| 5. Renumber the succeeding section accordingly.,
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0011|
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0012| and thence referred to the APPROPRIATIONS AND FINANCE
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0013| COMMITTEE.
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0014|
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0015| Respectfully submitted,
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0016|
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0017|
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0018|
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0019|
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0020|
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0021| Jerry W. Sandel, Chairman
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0022|
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0023|
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0024| Adopted Not Adopted
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0025|
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0001| (Chief Clerk) (Chief Clerk)
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0002|
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0003| Date
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0004|
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0005| The roll call vote was 10 For 0 Against
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0006| Yes: 10
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0007| Excused: Gubbels, Lovejoy, Parsons
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0008| Absent: None
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0009|
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0010|
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0011| .118804.1
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0012| G:\BILLTEXT\BILLW_97\H1201 State of New Mexico
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0013| House of Representatives
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0014|
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0015| FORTY-THIRD LEGISLATURE
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0016| FIRST SESSION, 1997
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0017|
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0018|
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0019| March 14, 1997
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0020|
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0021|
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0022| Mr. Speaker:
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0023|
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0024| Your APPROPRIATIONS AND FINANCE COMMITTEE, to
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0025| whom has been referred
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0001|
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0002| HOUSE BILL 1201, as amended
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0003|
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0004| has had it under consideration and reports same with
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0005| recommendation that it DO PASS.
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0006|
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0007| Respectfully submitted,
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0008|
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0009|
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0010|
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0011|
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0012|
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0013| Max Coll, Chairman
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0014|
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0015|
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0016| Adopted Not Adopted
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0017|
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0018| (Chief Clerk) (Chief Clerk)
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0019|
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0020| Date
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0021|
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0022| The roll call vote was 16 For 0 Against
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0023| Yes: 16
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0024| Excused: Taylor, J.P.
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0025| Absent: None
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0001|
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0002|
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0003| G:\BILLTEXT\BILLW_97\H1201
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0004|
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0005| FORTY-THIRD LEGISLATURE
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0006| FIRST SESSION, 1997
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0007|
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0008|
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0009| March 19, 1997
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0010|
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0011| Mr. President:
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0012|
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0013| Your WAYS AND MEANS COMMITTEE, to whom has been
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0014| referred
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0015|
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0016| HOUSE BILL 1201, 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, and thence referred to the
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0020| FINANCE COMMITTEE.
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0021|
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0022| Respectfully submitted,
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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| __________________________________
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0003| Carlos R. Cisneros, Chairman
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0004|
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0005|
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0006|
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0007| Adopted_______________________ Not
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0008| Adopted_______________________
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0009| (Chief Clerk) (Chief Clerk)
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0010|
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0011|
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0012| Date ________________________
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0013|
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0014|
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0015| The roll call vote was 7 For 0 Against
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0016| Yes: 7
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0017| No: 0
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0018| Excused: Duran, McSorley
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0019| Absent: None
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0020|
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0021|
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0022| H1201WM1
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0023|
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0024|
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0025|
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0001| FORTY-THIRD LEGISLATURE
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0002| FIRST SESSION, 1997
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0003|
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0004|
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0005| March 20, 1997
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0006|
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0007| Mr. President:
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0008|
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0009| Your FINANCE COMMITTEE, to whom has been referred
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0010|
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0011| HOUSE BILL 1201, as amended
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0012|
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0013| has had it under consideration and reports same with
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0014| recommendation that it DO PASS.
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0015|
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0016| Respectfully submitted,
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0017|
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0018|
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0019|
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0020|
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0021| __________________________________
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0022| Ben D. Altamirano, Chairman
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0023|
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0024|
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0025|
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0001| Adopted_______________________ Not
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0002| Adopted_______________________
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0003| (Chief Clerk) (Chief Clerk)
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0004|
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0005|
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0006|
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0007| Date ________________________
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0008|
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0009|
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0010| The roll call vote was 6 For 0 Against
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0011| Yes: 6
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0012| No: None
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0013| Excused: Aragon, Campos, Eisenstadt, Ingle, Smith
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0014| Absent: None
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0015|
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0016|
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0017| H1201FC1
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