State of New Mexico
                      House of Representatives
  
                      FORTY-THIRD LEGISLATURE
                        FIRST SESSION, 1997
  
  
                                                   March 14, 1997
  
  
  Mr. Speaker:
  
       Your TAXATION AND REVENUE COMMITTEE, to whom has
  been referred
  
          SENATE WAYS AND MEANS COMMITTEE SUBSTITUTE
               FOR SENATE BILL 1211, as amended
                               
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  Strike Senate Finance Committee Amendment 3.
  
       2.  Strike Item 2 of Senate Floor Amendment 1.
  
       3.  On page 1, line 22, after "credit" insert "as provided in
  Subsection D of this section".
  
       4.  On page 2, line 6, strike "business" and insert in lieu
  thereof "the new business's".
  
       5.  On page 2, line 11, before "that" insert "in New Mexico".

  
       6.  On page 2, line 16, after "an" insert "individual".
  
       7.  On page 2, line 16, strike "and".
  
       8.  On page 2, strike lines 17 and 18 in their entirety and
  insert the following:
  
                 "(3)  "new business" means a manufacturer or
  processor  that occupies a new business facility or a grower that
  commences operation in New Mexico on or after July 1, 1997; and
  
                 (4)  "new business facility" means a facility on
  Indian land that satisfies the following requirements:
  
                      (a)  the facility is employed by the taxpayer
  in the operation of a revenue-producing enterprise.  The facility
  shall not be considered a "new business facility" in the hands of
  the taxpayer if the taxpayer's only activity with respect to the
  facility is to lease it to another person; 
  
                      (b)  the facility is acquired by or leased to
  the taxpayer on or after January 1, 1997.  The facility shall be
  deemed to have been acquired by or leased to the taxpayer on or
  after the specified date if the transfer of title to the taxpayer,
  the transfer of possession pursuant to a binding contract to
  transfer title to the taxpayer or the commencement of the term of
  the lease to the taxpayer occurs on or after that date or if the
  facility is constructed, erected or installed by or on behalf of the
  taxpayer, the construction, erection or installation is completed on
  or after that date;
  
                      (c)  the facility is a newly acquired facility
  in which the taxpayer is not continuing the operation of the same or
  a substantially identical revenue-producing enterprise that
  previously was in operation on the Indian land of the Indian nation,
  tribe or pueblo where the facility is now located; a facility is a
  "newly acquired facility" if the facility was acquired or leased by
  the taxpayer from another person even if the facility was employed
  in a revenue-producing enterprise on the Indian land of the same
  Indian nation, tribe or pueblo immediately prior to the transfer of
  the title to the facility to the taxpayer or immediately prior to
  the commencement of the term of the lease of the facility to the
  taxpayer by another person provided that the revenue-producing
  enterprise of the previous occupant was not the same or
  substantially identical to the taxpayer's revenue-producing
  enterprise; and
  
                      (d)  the facility is not a replacement
  business facility for a business facility that existed on the Indian
  land of  the Indian nation, tribe or pueblo where the business is
  now located.".
  
  
       9.  On page 2, line 25, after "period" insert "from the new
  business's activity conducted on Indian land".
  
       10.  On page 3, strike lines 9 through 15 in their entirety
  and insert in lieu thereof:
  
            "G.  For a taxpayer qualifying for the credit provided by
  this section that conducts business in New Mexico both on and off
  Indian land, the taxpayer's corporate income tax liability derived
  from the new business activity conducted on Indian land shall be
  equal to the sum of the products of one-half of the taxpayer's New
  Mexico corporate income tax liability before application of the
  credit provided by this section multiplied by the payroll factor and
  one-half of the taxpayer's New Mexico corporate income tax liability
  before application of the credit provided by this section multiplied
  by the property factor.  The factors shall be determined as
  follows:".
  
       
       11.  On page 3, line 18, after "his" insert "new".
  
       12.  On page 3, line 24, after "used" insert "in the new
  business".
  
                                Respectfully submitted,
  
  
  
                                                                                               
                                                              Jerry W. Sandel, Chairman
  
  
  Adopted                       Not Adopted                       
            (Chief Clerk)                       (Chief Clerk)
  
                         Date             
  
  The roll call vote was 11  For 0  Against
  Yes:      11
            Excused:  Sandoval, Stell
            Absent:   None
  
  
                                                         .118911.3
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