HOUSE BILL 1149

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

James R.J. Strickler

AN ACT

RELATING TO TAXATION; ELIMINATING THE GOVERNMENTAL GROSS RECEIPTS ON DOMESTIC WATER SUPPLIED BY A GOVERNMENTAL UTILITY; CREATING A DEDUCTION FOR RECEIPTS FROM THE SALE OF ELECTRICITY, NATURAL GAS, WATER AND SEWER SERVICES FROM THE GROSS RECEIPTS OF A PUBLIC UTILITY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 7-9-3.2 NMSA 1978 (being Laws 1991, Chapter 8, Section 1, as amended) is amended to read:

     "7-9-3.2. ADDITIONAL DEFINITION.--

          A. As used in the Gross Receipts and Compensating Tax Act, "governmental gross receipts" means receipts of the state or an agency, institution, instrumentality or political subdivision from:

                (1) the sale of tangible personal property other than water from facilities open to the general public;

                (2) the performance of or admissions to recreational, athletic or entertainment services or events in facilities open to the general public;

                (3) refuse collection or refuse disposal or both;

                (4) sewage services;

                [(5) the sale of water by a utility owned or operated by a county, municipality or other political subdivision of the state;] and

                [(6)] (5) the renting of parking, docking or tie-down spaces or the granting of permission to park vehicles, tie down aircraft or dock boats.

     "Governmental gross receipts" includes receipts from the sale of tangible personal property handled on consignment when sold from facilities open to the general public but excludes cash discounts taken and allowed, governmental gross receipts tax payable on transactions reportable for the period and any type of time-price differential.

          B. As used in this section, "facilities open to the general public" does not include point of sale registers or electronic devices at a bookstore owned or operated by a public post-secondary educational institution when the registers or devices are utilized in the sale of textbooks or other materials required for courses at the institution to a student enrolled at the institution who displays a valid student identification card."

     Section 2. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS TAX--ELECTRICITY, NATURAL GAS AND WATER SALES BY A PUBLIC UTILITY.--

          A. Receipts from the sale of electricity, natural gas or water by a public utility may be deducted from gross receipts.

          B. As used in this section, "public utility" means a person, not engaged solely in interstate business, that owns, operates, leases or controls:

                (1) a plant, property or facility for the generation, transmission or distribution, sale or furnishing to or for the public of electricity for light, heat, power or other uses;

                (2) a plant, property or facility for the manufacture, storage, distribution or furnishing to or for the public of natural or manufactured gas or mix or liquefied petroleum gas for light, heat, power or other uses; "public utility" includes for purposes of this paragraph a plant, property or facility used for or in connection with the business of the manufacture, storage, distribution, sale or furnishing of liquefied petroleum gas in enclosed containers holding at least twenty pounds or at least four gallons of liquefied petroleum gas or in a tank truck for distribution to the public for use for heat, power or other purposes; or

                (3) a plant, property or facility for the supplying, storage, distribution or furnishing to or for the public of water for manufacturing, municipal, domestic or other uses; provided, however, nothing contained in this paragraph shall be construed to apply to irrigation systems, the chief or principal business of which is to supply water for the purpose of irrigation."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

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