0001|                           SENATE BILL 291
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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|                           PATRICK H. LYONS
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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; PROVIDING A DEDUCTION FROM GROSS
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0012|     RECEIPTS FOR SALE OF ADVANCED PRODUCT DEVELOPMENT SERVICES.
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0013|     
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0014|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015|          Section 1.  A new section of the Gross Receipts and
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0016|     Compensating Tax Act is enacted to read:
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0017|          "[|NEW MATERIAL|] DEDUCTION--GROSS RECEIPTS TAX--SALE OF
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0018|     ADVANCED PRODUCT DEVELOPMENT SERVICES.--
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0019|               A.  Receipts from selling advanced product
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0020|     development services may be deducted from gross receipts.
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0021|               B.  As used in this section, "advanced product
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0022|     development services" means services necessary to develop a
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0023|     new product that is intended to be manufactured but has not
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0024|     yet been offered for sale, lease or other transfer, and
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0025|     includes the design and development of prototypes."
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0001|          Section 2.  EFFECTIVE DATE.--The effective date of the
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0002|     provisions of this act is July 1, 1998.
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0003|                              
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