0001| SENATE BILL 1211 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| JOHN PINTO | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO TAXATION; PROVIDING A CREDIT AGAINST CORPORATE | 0012| INCOME TAX; ENACTING A SECTION OF THE NMSA 1978. | 0013| | 0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0015| Section 1. INTERGOVERNMENTAL BUSINESS TAX CREDIT.-- | 0016| A. With respect to the net income of a taxpayer | 0017| engaged in the transaction of business occurring after July 1, | 0018| 1997 from a new business on tribal land, the person who is | 0019| liable for the payment of the corporate income tax may claim a | 0020| credit against the corporate income tax if a tax or taxes are | 0021| imposed by an Indian nation, tribe or pueblo. | 0022| B. The credit provided by this section may be | 0023| referred to as the "intergovernmental business tax credit". | 0024| C. As used in this section: | 0025| (1) "new business" means a business that | 0001| commences operation on or after July 1, 1997; | 0002| (2) "person" means an individual, estate, | 0003| trust, receiver, business trust, corporation, cooperative, | 0004| joint venture, association, limited liability company or other | 0005| group or combination acting as a unit; and | 0006| (3) "tribal land" means all land that on March | 0007| 1, 1997 was: | 0008| (a) within the exterior boundaries of an | 0009| Indian reservation or pueblo grant; or | 0010| (b) lands held in trust by the United | 0011| States for an Indian nation, tribe or pueblo. | 0012| D. The intergovernmental business tax credit shall | 0013| be determined separately for each reporting period and shall be | 0014| equal to fifty percent of the lesser of: | 0015| (1) the aggregate amount of tax imposed by an | 0016| Indian nation, tribe or pueblo in effect on March 1, 1997; or | 0017| (2) the amount of corporate income tax due for | 0018| the reporting period. | 0019| E. The taxation and revenue department shall | 0020| administer and interpret the provisions of this section in | 0021| accordance with the provisions of the Tax Administration Act. | 0022| F. The burden of showing entitlement to a credit | 0023| authorized by this section is on the taxpayer claiming it, and | 0024| the taxpayer shall furnish to the appropriate tax collecting | 0025| agency, in the manner determined by the taxation and revenue | 0001| department, proof of payment of tax on which the credit is | 0002| based to an Indian nation, tribe or pueblo. | 0003| Section 2. EFFECTIVE DATE.--The effective date of the | 0004| provisions of this act is July 1, 1997. | 0005| - 3 - | 0006| | 0007| FORTY-THIRD LEGISLATURE | 0008| FIRST SESSION, 1997 | 0009| | 0010| | 0011| February 26, 1997 | 0012| | 0013| Mr. President: | 0014| | 0015| Your WAYS AND MEANS COMMITTEE, to whom has been | 0016| referred | 0017| | 0018| SENATE BILL 1211 | 0019| | 0020| has had it under consideration and reports same with | 0021| recommendation that it DO NOT PASS, but that | 0022| | 0023| SENATE WAYS AND MEANS COMMITTEE SUBSTITUTE FOR | 0024| SENATE BILL 1211 | 0025| | 0001| DO PASS, and thence referred to the FINANCE COMMITTEE. | 0002| | 0003| Respectfully submitted, | 0004| | 0005| | 0006| | 0007| __________________________________ | 0008| Carlos R. Cisneros, Chairman | 0009| | 0010| | 0011| Adopted_______________________ Not Adopted_______________________ | 0012| (Chief Clerk) (Chief Clerk) | 0013| | 0014| | 0015| Date ________________________ | 0016| | 0017| | 0018| The roll call vote was 5 For 0 Against | 0019| Yes: 5 | 0020| No: 0 | 0021| Excused: Duran, Kidd, Leavell, Wilson | 0022| Absent: None | 0023| | 0024| | 0025| S1211WM1 | 0001| SENATE WAYS AND MEANS COMMITTEE SUBSTITUTE FOR | 0002| SENATE BILL 1211 | 0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO TAXATION; PROVIDING A CREDIT AGAINST CORPORATE | 0013| INCOME TAX; ENACTING A SECTION OF THE NMSA 1978. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. A new section of the Corporate Income and | 0017| Franchise Tax Act is enacted to read: | 0018| "[NEW MATERIAL] INTERGOVERNMENTAL BUSINESS TAX CREDIT.-- | 0019| A. With respect to the net income of a taxpayer | 0020| engaged in the transaction of business occurring after July 1, | 0021| 1997 from a new business on tribal land, the person who is | 0022| liable for the payment of the corporate income tax may claim a | 0023| credit against the corporate income tax for the aggregate | 0024| amount of tax paid to an Indian nation, tribe or pueblo located | 0025| in whole or in part within New Mexico. | 0001| B. The credit provided by this section may be | 0002| referred to as the "intergovernmental business tax credit". | 0003| C. As used in this section: | 0004| (1) "aggregate amount of tax" means the total of | 0005| all taxes imposed by an Indian nation, tribe or pueblo located | 0006| in whole or in part in New Mexico on income derived from | 0007| business activity on Indian land, except a tax shall not be | 0008| included in that total if the tax is eligible for a credit | 0009| pursuant to the provisions of Section 7-29C-1 NMSA 1978 or any | 0010| other intergovernmental tax credit that provides a similar tax | 0011| credit; | 0012| (2) "Indian land" means all land that on March | 0013| 1, 1997 was: | 0014| (a) within the exterior boundaries of an | 0015| Indian reservation or pueblo grant; or | 0016| (b) lands held in trust by the United States | 0017| for an Indian nation, tribe or pueblo; and | 0018| (3) "new business" means a business that | 0019| commences operation on or after July 1, 1997. | 0020| D. The intergovernmental business tax credit shall be | 0021| determined separately for each reporting period and shall be | 0022| equal to fifty percent of the lesser of: | 0023| (1) the aggregate amount of tax paid by a | 0024| taxpayer; or | 0025| (2) the amount of the taxpayer's corporate | 0001| income tax due for the reporting period. | 0002| E. The department shall administer and interpret the | 0003| provisions of this section in accordance with the provisions of | 0004| the Tax Administration Act. | 0005| F. The burden of showing entitlement to a credit | 0006| authorized by this section is on the taxpayer claiming it, and the | 0007| taxpayer shall furnish to the appropriate tax collecting agency, | 0008| in the manner determined by the department, proof of payment of | 0009| the aggregate amount of tax on which the credit is based. | 0010| G. A taxpayer that conducts business both on and off | 0011| Indian land in New Mexico shall have a corporate income tax | 0012| liability from his income on Indian land equal to the sum of the | 0013| products of one-half of the taxpayer's New Mexico income | 0014| multiplied by the payroll factor and one-half of the taxpayer's | 0015| New Mexico income multiplied by the property factor. The factors | 0016| shall be determined as follows: | 0017| (1) the payroll factor is a fraction, the numerator | 0018| of which is the amount of compensation paid to employees employed | 0019| during the tax period by the taxpayer in his business on Indian | 0020| land, and the denominator of which is the total amount of | 0021| compensation paid to employees employed during the tax period by | 0022| the taxpayer in all of New Mexico, including Indian land; and | 0023| (2) the property factor is a fraction, the | 0024| numerator of which is the average value of the taxpayer's real and | 0025| tangible personal property owned or rented and used on Indian land | 0001| in New Mexico during the tax period and the denominator of which | 0002| is the average value of all the taxpayer's real and tangible | 0003| property owned or rented and used in New Mexico, including on | 0004| Indian land, during the tax period." | 0005| Section 2. APPLICABILITY.--The provisions of this act apply | 0006| to taxable years beginning on or after January 1, 1997. | 0007| Section 3. EFFECTIVE DATE.--The effective date of the | 0008| provisions of this act is July 1, 1997. | 0009|  | 0010| | 0011| | 0012| FORTY-THIRD LEGISLATURE SB 1211/a | 0013| FIRST SESSION, 1997 | 0014| | 0015| | 0016| February 28, 1997 | 0017| | 0018| Mr. President: | 0019| | 0020| Your FINANCE COMMITTEE, to whom has been referred | 0021| | 0022| SENATE WAYS AND MEANS COMMITTEE SUBSTITUTE FOR | 0023| SENATE BILL 1211 | 0024| | 0025| has had it under consideration and reports same with recommendation | 0001| that it DO PASS, amended as follows: | 0002| | 0003| 1. On page 1, line 22, after "tax" strike the remainder of the | 0004| line and on line 23, strike "imposed for similar purposes by" and | 0005| insert in lieu thereof "for the aggregate amount of tax paid to". | 0006| | 0007| 2. On page 1, line 24, after "pueblo" insert "located in whole | 0008| or in part within New Mexico". | 0009| | 0010| 3. On page 2, line 25, after "period" insert "from business | 0011| conducted on Indian land". | 0012| | 0013| 4. On page 3, line 16, strike "personnel" and insert in lieu | 0014| thereof "payroll". | 0015| | 0016| 5. On page 3, line 17, after the first occurrence of "the" | 0017| strike "number of" and insert in lieu thereof "amount of | 0018| compensation paid to". | 0019| | 0020| | 0021| | 0022| Respectfully submitted, | 0023| | 0024| | 0025| | 0001| __________________________________ | 0002| Ben D. Altamirano, Chairman | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| | 0012| | 0013| | 0014| Adopted_______________________ Not Adopted_______________________ | 0015| (Chief Clerk) (Chief Clerk) | 0016| | 0017| | 0018| Date ________________________ | 0019| | 0020| | 0021| The roll call vote was 6 For 0 Against | 0022| Yes: 6 | 0023| No: None | 0024| Excused: Aragon, Carraro, Eisenstadt, McKibben, Smith | 0025| Absent: None | 0001| | 0002| | 0003| S1211/FC1 .117805.1 | 0004| | 0005| FORTY-THIRD LEGISLATURE | 0006| FIRST SESSION | 0007| | 0008| | 0009| March 1, 1997 | 0010| | 0011| | 0012| SENATE FLOOR AMENDMENT number _______ to SENATE WAYS AND MEANS | 0013| SUBSTITUTE FOR SENATE BILL 1211 | 0014| | 0015| Amendment sponsored by Senator John Pinto | 0016| | 0017| | 0018| 1. On page 1, line 20, strike "tribal" and insert "Indian". | 0019| | 0020| 2. On page 3, line 13, strike "personnel" and insert | 0021| "payroll". | 0022| | 0023| 3. On page 3, line 19, after "total" strike "number of" and | 0024| insert "amount of compensation paid to". | 0025| | 0001| | 0002| | 0003| | 0004| __________________________ | 0005| John Pinto | 0006| | 0007| | 0008| | 0009| Adopted ___________________ Not Adopted _______________________ | 0010| (Chief Clerk) (Chief Clerk) | 0011| | 0012| | 0013| Date _________________ | 0014| State of New Mexico | 0015| House of Representatives | 0016| | 0017| FORTY-THIRD LEGISLATURE | 0018| FIRST SESSION, 1997 | 0019| | 0020| | 0021| March 14, 1997 | 0022| | 0023| | 0024| Mr. Speaker: | 0025| | 0001| Your TAXATION AND REVENUE COMMITTEE, to whom has | 0002| been referred | 0003| | 0004| SENATE WAYS AND MEANS COMMITTEE SUBSTITUTE | 0005| FOR SENATE BILL 1211, as amended | 0006| | 0007| has had it under consideration and reports same with | 0008| recommendation that it DO PASS, amended as follows: | 0009| | 0010| 1. Strike Senate Finance Committee Amendment 3. | 0011| | 0012| 2. Strike Item 2 of Senate Floor Amendment 1. | 0013| | 0014| 3. On page 1, line 22, after "credit" insert "as provided in | 0015| Subsection D of this section". | 0016| | 0017| 4. On page 2, line 6, strike "business" and insert in lieu | 0018| thereof "the new business's". | 0019| | 0020| 5. On page 2, line 11, before "that" insert "in New Mexico". | 0021| | 0022| 6. On page 2, line 16, after "an" insert "individual". | 0023| | 0024| 7. On page 2, line 16, strike "and". | 0025| | 0001| 8. On page 2, strike lines 17 and 18 in their entirety and | 0002| insert the following: | 0003| | 0004| "(3) "new business" means a manufacturer or processor | 0005| that occupies a new business facility or a grower that commences | 0006| operation in New Mexico on or after July 1, 1997; and | 0007| | 0008| (4) "new business facility" means a facility on | 0009| Indian land that satisfies the following requirements: | 0010| | 0011| (a) the facility is employed by the taxpayer in | 0012| the operation of a revenue-producing enterprise. The facility shall | 0013| not be considered a "new business facility" in the hands of the | 0014| taxpayer if the taxpayer's only activity with respect to the | 0015| facility is to lease it to another person; | 0016| | 0017| (b) the facility is acquired by or leased to the | 0018| taxpayer on or after January 1, 1997. The facility shall be deemed | 0019| to have been acquired by or leased to the taxpayer on or after the | 0020| specified date if the transfer of title to the taxpayer, the | 0021| transfer of possession pursuant to a binding contract to transfer | 0022| title to the taxpayer or the commencement of the term of the lease | 0023| to the taxpayer occurs on or after that date or if the facility is | 0024| constructed, erected or installed by or on behalf of the taxpayer, | 0025| the construction, erection or installation is completed on or after | 0001| that date; | 0002| | 0003| (c) the facility is a newly acquired facility in | 0004| which the taxpayer is not continuing the operation of the same or a | 0005| substantially identical revenue-producing enterprise that previously | 0006| was in operation on the Indian land of the Indian nation, tribe or | 0007| pueblo where the facility is now located; a facility is a "newly | 0008| acquired facility" if the facility was acquired or leased by the | 0009| taxpayer from another person even if the facility was employed in a | 0010| revenue-producing enterprise on the Indian land of the same Indian | 0011| nation, tribe or pueblo immediately prior to the transfer of the | 0012| title to the facility to the taxpayer or immediately prior to the | 0013| commencement of the term of the lease of the facility to the | 0014| taxpayer by another person provided that the revenue-producing | 0015| enterprise of the previous occupant was not the same or | 0016| substantially identical to the taxpayer's revenue-producing | 0017| enterprise; and | 0018| | 0019| (d) the facility is not a replacement business | 0020| facility for a business facility that existed on the Indian land of | 0021| the Indian nation, tribe or pueblo where the business is now | 0022| located.". | 0023| | 0024| | 0025| 9. On page 2, line 25, after "period" insert "from the new | 0001| business's activity conducted on Indian land". | 0002| | 0003| 10. On page 3, strike lines 9 through 15 in their entirety and | 0004| insert in lieu thereof: | 0005| | 0006| "G. For a taxpayer qualifying for the credit provided by | 0007| this section that conducts business in New Mexico both on and off | 0008| Indian land, the taxpayer's corporate income tax liability derived | 0009| from the new business activity conducted on Indian land shall be | 0010| equal to the sum of the products of one-half of the taxpayer's New | 0011| Mexico corporate income tax liability before application of the | 0012| credit provided by this section multiplied by the payroll factor and | 0013| one-half of the taxpayer's New Mexico corporate income tax liability | 0014| before application of the credit provided by this section multiplied | 0015| by the property factor. The factors shall be determined as | 0016| follows:". | 0017| | 0018| | 0019| 11. On page 3, line 18, after "his" insert "new". | 0020| | 0021| 12. On page 3, line 24, after "used" insert "in the new | 0022| business". | 0023| | 0024| Respectfully submitted, | 0025| | 0001| | 0002| | 0003| | 0004| Jerry W. Sandel, Chairman | 0005| | 0006| | 0007| Adopted Not Adopted | 0008| (Chief Clerk) | 0009| (Chief Clerk) | 0010| | 0011| Date | 0012| | 0013| The roll call vote was 11 For 0 Against | 0014| Yes: 11 | 0015| Excused: Sandoval, Stell | 0016| Absent: None | 0017| | 0018| | 0019| | 0020| .118911.3 | 0021| G:\BILLTEXT\BILLW_97\S1211 |