SENATE BILL 212
57th legislature - STATE OF NEW MEXICO - second session, 2026
INTRODUCED BY
Carrie Hamblen
AN ACT
RELATING TO TAXATION; CREATING GROSS RECEIPTS TAX EXEMPTIONS FOR THE SALE OF QUALIFIED SKI AREA EQUIPMENT AND FOR THE IMPROVEMENT OR CONSTRUCTION OF A BUILDING ON A SKI AREA; AMENDING CERTAIN DEDUCTIONS FOR PERSONS ENGAGED IN THE CONSTRUCTION BUSINESS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] EXEMPTION--GROSS RECEIPTS TAX FOR SALE OF QUALIFIED SKI AREA EQUIPMENT--IMPROVEMENT OR CONSTRUCTION OF A BUILDING ON A SKI AREA.--
A. Exempted from the state gross receipts tax, but not any local option gross receipts tax, are receipts of a person engaged in the construction business for the sale of qualified ski area equipment to a ski area operator; provided that the qualified ski area equipment shall be used exclusively in the ski area operator's ski area.
B. Exempted from the state gross receipts tax, but not any local option gross receipts tax, are receipts of a person engaged in the construction business for the sale of a construction project that is the improvement or construction of a building located on a ski area operated by a ski area operator.
C. A taxpayer allowed an exemption pursuant to this section shall report the amount of the exemption to the department in a manner required by the department.
D. The exemptions provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the exemption.
E. As used in this section:
(1) "qualified ski area equipment" means heavy equipment used on a ski area, such as a ski run or trail groomer, bulldozer, front-end loader, skid steer generally used to prepare or improve a ski run or trail or snowmaking system;
(2) "ski area" means the property owned, permitted, leased or under the control of a ski area operator and administered as a single enterprise within the state; and
(3) "ski area operator" means any person, partnership, corporation or other commercial entity and its agents, officers, employees or representatives that has operational responsibility for a ski area or ski lift."
SECTION 2. Section 7-9-5 NMSA 1978 (being Laws 1966, Chapter 47, Section 5, as amended) is amended to read:
"7-9-5. PRESUMPTION OF TAXABILITY.--
A. To prevent evasion of the gross receipts tax and to aid in its administration, it is presumed that all receipts of a person engaging in business are subject to the gross receipts tax. Except as provided in Section 1 of this 2026 act, a person engaged solely in transactions specifically exempt under the provisions of the Gross Receipts and Compensating Tax Act shall not be required to register or file a return under that act.
B. If receipts from nontaxable charges for mobile telecommunications services are aggregated with and not separately stated from taxable charges for mobile telecommunications services, the charges for nontaxable mobile telecommunications services shall be subject to gross receipts tax unless the home service provider can reasonably identify nontaxable charges in its books and records that are kept in the regular course of business. For the purposes of this subsection, "charges for mobile telecommunications services", "home service provider" and "mobile telecommunications services" have the meanings given in the federal Mobile Telecommunications Sourcing Act.
C. A marketplace provider engaging in business in this state is not liable for amounts of gross receipts tax collected incorrectly due to the marketplace provider reasonably relying on erroneous information provided by the seller."
SECTION 3. Section 7-9-51 NMSA 1978 (being Laws 1969, Chapter 144, Section 41, as amended) is amended to read:
"7-9-51. DEDUCTION--GROSS RECEIPTS TAX--SALE OF CONSTRUCTION MATERIAL TO PERSONS ENGAGED IN THE CONSTRUCTION BUSINESS.--
A. Receipts from selling construction material may be deducted from gross receipts if the sale is made to a person engaged in the construction business who delivers a nontaxable transaction certificate to the seller or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978.
B. The buyer must incorporate the construction material as:
(1) an ingredient or component part of a construction project that is subject to the gross receipts tax upon its completion or upon the completion of the overall construction project of which it is a part;
(2) an ingredient or component part of a construction project that is subject to the gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed; [or]
(3) an ingredient or component part of a construction project that is located on the tribal territory of an Indian nation, tribe or pueblo; or
(4) an ingredient or component part of a construction project that is sold to a ski area operator for which the exemption pursuant to Section 1 of this 2026 act may be claimed.
C. As used in this section:
(1) "ski area" means the property owned, permitted, leased or under the control of a ski area operator and administered as a single enterprise within the state; and
(2) "ski area operator" means any person, partnership, corporation or other commercial entity and its agents, officers, employees or representatives that has operational responsibility for a ski area or ski lift."
SECTION 4. Section 7-9-52 NMSA 1978 (being Laws 1969, Chapter 144, Section 42, as amended) is amended to read:
"7-9-52. DEDUCTION--GROSS RECEIPTS TAX--SALE OF CONSTRUCTION SERVICES AND CONSTRUCTION-RELATED SERVICES TO PERSONS ENGAGED IN THE CONSTRUCTION BUSINESS.--
A. Receipts from selling a construction service or a construction-related service may be deducted from gross receipts if the sale is made to a person engaged in the construction business who delivers a nontaxable transaction certificate to the person performing the construction service or a construction-related service or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978.
B. The buyer shall have the construction services or construction-related services directly contracted for or billed to:
(1) a construction project that is subject to the gross receipts tax upon its completion or upon the completion of the overall construction project of which it is a part;
(2) a construction project that is subject to the gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed; [or]
(3) a construction project that is located on the tribal territory of an Indian nation, tribe or pueblo; or
(4) a construction project that is sold to a ski area operator for which the exemption pursuant to Section 1 of this 2026 act may be claimed.
C. As used in this section:
(1) "ski area" means the property owned, permitted, leased or under the control of a ski area operator and administered as a single enterprise within the state; and
(2) "ski area operator" means any person, partnership, corporation or other commercial entity and its agents, officers, employees or representatives that has operational responsibility for a ski area or ski lift."
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2026.
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