0001| SENATE BILL 86
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| ROMAN M. MAES III
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0005|
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0006|
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0007|
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0008| FOR THE ECONOMIC DEVELOPMENT, SCIENCE AND TECHNOLOGY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO TAXATION; PROVIDING DEDUCTIONS FROM GROSS RECEIPTS
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0012| FOR SALES OF CONSTRUCTION MATERIALS, CONSTRUCTION SERVICES,
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0013| EQUIPMENT AND INSTALLATION SERVICES FOR USE IN NEW OR EXPANDED
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0014| MANUFACTURING OPERATIONS.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. A new section of the Gross Receipts and
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0018| Compensating Tax Act is enacted to read:
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0019| "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS TAX--SALE
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0020| OF CERTAIN SERVICES, MATERIALS AND EQUIPMENT FOR MANUFACTURING
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0021| OPERATIONS--DEFINITIONS.--
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0022| A. Receipts from the sale of construction services
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0023| to expand existing or construct new facilities for a
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0024| manufacturing operation located in New Mexico may be deducted
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0025| from gross receipts if the construction service is sold to a
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0001| person who delivers a nontaxable transaction certificate to
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0002| the person performing the construction service.
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0003| B. Receipts from the sale of construction
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0004| materials purchased for use to expand existing or construct
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0005| new facilities for a manufacturing operation located in New
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0006| Mexico may be deducted from gross receipts if the materials
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0007| are sold to a person who delivers a nontaxable transaction
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0008| certificate to the person selling the materials.
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0009| C. Receipts from the sale of equipment purchased
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0010| for use in a new or expanded manufacturing operation located
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0011| in New Mexico may be deducted from gross receipts if the
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0012| equipment is sold to a person who delivers a nontaxable
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0013| transaction certificate to the person selling the equipment.
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0014| D. Receipts from the sale of installation services
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0015| necessary to install equipment in a new or expanded
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0016| manufacturing operation located in New Mexico may be deducted
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0017| from gross receipts if the installation service is sold to a
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0018| person who delivers a nontaxable transaction certificate to
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0019| the person performing the installation service.
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0020| E. As used in this section:
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0021| (1) "construction service" means a service
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0022| necessary to construct or expand a manufacturing operation;
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0023| (2) "equipment" means equipment necessary to
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0024| conduct a new or expanded manufacturing operation;
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0025| (3) "installation service" means a service
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0001| required to install and make operational equipment necessary
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0002| to conduct a manufacturing operation; and
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0003| (4) "manufacturing operation" means a plant
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0004| employing personnel to perform production or assembly tasks to
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0005| produce goods;
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0006| F. Election by a taxpayer to deliver the
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0007| nontaxable transaction certificate necessary to support a
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0008| deduction from gross receipts pursuant to the provisions of
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0009| this section shall preclude availability to that taxpayer of
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0010| the investment credit that would be available on the same
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0011| equipment pursuant to the provisions of the Investment Credit
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0012| Act."
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0013| Section 2. EFFECTIVE DATE.--The effective date of the
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0014| provisions of this act is July 1, 1998.
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0015|
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