0001| State of New Mexico | 0002| House of Representatives | 0003| | 0004| FORTY-THIRD LEGISLATURE | 0005| FIRST SESSION, 1997 | 0006| | 0007| | 0008| March 14, 1997 | 0009| | 0010| | 0011| Mr. Speaker: | 0012| | 0013| Your TAXATION AND REVENUE COMMITTEE, to whom has | 0014| been referred | 0015| | 0016| HOUSE BILL 1247 | 0017| | 0018| has had it under consideration and reports same with | 0019| recommendation that it DO NOT PASS, but that | 0020| | 0021| HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE | 0022| FOR HOUSE BILL 1247 | 0023| | 0024| DO PASS, amended as follows: | 0025| | 0001| 1. On page 1, line 20, strike "tribal" and insert in | 0002| lieu thereof "Indian". | 0003| | 0004| 2. On page 1, line 22, after "credit" insert "as provided in | 0005| Subsection D of this section". | 0006| | 0007| 3. On page 2, line 6, strike "business" and insert in lieu | 0008| thereof "the new business's". | 0009| | 0010| 4. On page 2, line 11, before "that" insert "in New Mexico". | 0011| | 0012| 5. On page 2, line 16, after "an" insert "individual". | 0013| | 0014| 6. On page 2, line 16, strike "and". | 0015| | 0016| 7. On page 2, strike lines 17 and 18 in their entirety and | 0017| insert the following: | 0018| | 0019| "(3) "new business" means a manufacturer or | 0020| processor that occupies a new business facility or a grower that | 0021| commences operation in New Mexico on or after July 1, 1997; and | 0022| | 0023| (4) "new business facility" means a facility on | 0024| Indian land that satisfies the following requirements: | 0025| | 0001| (a) the facility is employed by the taxpayer | 0002| in the operation of a revenue-producing enterprise. The facility | 0003| shall not be considered a "new business facility" in the hands of | 0004| the taxpayer if the taxpayer's only activity with respect to the | 0005| facility is to lease it to another person; | 0006| | 0007| | 0008| (b) the facility is acquired by or leased to | 0009| the taxpayer on or after January 1, 1997. The facility shall be | 0010| deemed to have been acquired by or leased to the taxpayer on or | 0011| after the specified date if the transfer of title to the taxpayer, | 0012| the transfer of possession pursuant to a binding contract to | 0013| transfer title to the taxpayer or the commencement of the term of | 0014| the lease to the taxpayer occurs on or after that date or if the | 0015| facility is constructed, erected or installed by or on behalf of the | 0016| taxpayer, the construction, erection or installation is completed on | 0017| or after that date; | 0018| | 0019| (c) the facility is a newly acquired facility | 0020| in which the taxpayer is not continuing the operation of the same or | 0021| a substantially identical revenue-producing enterprise that | 0022| previously was in operation on the Indian land of the Indian nation, | 0023| tribe or pueblo where the facility is now located; a facility is a | 0024| "newly acquired facility" if the facility was acquired or leased by | 0025| the taxpayer from another person even if the facility was employed | 0001| in a revenue-producing enterprise on the Indian land of the same | 0002| Indian nation, tribe or pueblo immediately prior to the transfer of | 0003| the title to the facility to the taxpayer or immediately prior to | 0004| the commencement of the term of the lease of the facility to the | 0005| taxpayer by another person provided that the revenue-producing | 0006| enterprise of the previous occupant was not the same or | 0007| substantially identical to the taxpayer's revenue-producing | 0008| enterprise; and | 0009| | 0010| | 0011| (d) the facility is not a replacement | 0012| business facility for a business facility that existed on the Indian | 0013| land of the Indian nation, tribe or pueblo where the business is now | 0014| located.". | 0015| | 0016| 8. On page 2, line 25, strike "business" and insert in lieu | 0017| thereof "the new business's activity". | 0018| | 0019| 9. On page 3, strike lines 10 through 16 in their entirety | 0020| and insert in lieu thereof: | 0021| | 0022| "G. For a taxpayer qualifying for the credit provided by | 0023| this section that conducts business in New Mexico both on and off | 0024| Indian land, the taxpayer's corporate income tax liability derived | 0025| from the new business activity conducted on Indian land shall be | 0001| equal to the sum of the products of one-half of the taxpayer's New | 0002| Mexico corporate income tax liability before application of the | 0003| credit provided by this section multiplied by the payroll factor and | 0004| one-half of the taxpayer's New Mexico corporate income tax liability | 0005| before application of the credit provided by this section multiplied | 0006| by the property factor. The factors shall be determined as | 0007| follows:". | 0008| | 0009| 10. On page 3, line 19, after "his" insert "new". | 0010| | 0011| 11. On page 3, line 25, after "used" insert "in the new | 0012| business"., | 0013| | 0014| and thence referred to the APPROPRIATIONS AND FINANCE | 0015| COMMITTEE. | 0016| | 0017| Respectfully submitted, | 0018| | 0019| | 0020| | 0021| | 0022| Jerry W. Sandel, Chairman | 0023| | 0024| | 0025| Adopted Not Adopted | 0001| (Chief Clerk) (Chief Clerk) | 0002| | 0003| Date | 0004| | 0005| The roll call vote was 11 For 0 Against | 0006| Yes: 11 | 0007| Excused: Sandoval, Stell | 0008| Absent: None | 0009| | 0010| | 0011| .118921.3 | 0012| G:\BILLTEXT\AMEND_97\H1247TR1 |