SENATE BILL 29

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

Timothy M. Keller and Roberto "Bobby" J. Gonzales

FOR THE SCIENCE, TECHNOLOGY AND TELECOMMUNICATIONS COMMITTEE AND THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE

AN ACT

RELATING TO TAXATION; PROVIDING FOR A DEDUCTION OF GROSS RECEIPTS OF SALES TO A PERSON ENGAGED IN TECHNOLOGY TRANSFER.

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] DEDUCTION--GROSS RECEIPTS TAX--SALES TO PERSONS ENGAGED IN TECHNOLOGY TRANSFERS.--

          A. Receipts from selling tangible personal property that is used in converting scientific and technological advances into marketable goods or services may be deducted from gross receipts if the sale is made to a person who is engaged in the business of transferring technology during the first three years of operations and who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must use the tangible personal property to begin operations to develop or create or in the development or creation of a product.

          B. The purpose of the deduction provided in this section is to encourage businesses in the technology commercialization industry to locate and expand in New Mexico.

          C. The department shall annually report to the revenue stabilization and tax policy committee the aggregate amount of deductions taken pursuant to this section, the number of taxpayers claiming the deduction and any other information that is necessary to determine that the deduction is performing the purpose for which it was enacted.

          D. A taxpayer deducting gross receipts pursuant to this section shall report the amount deducted separately for each deduction provided in this section and shall attribute the amount of the deduction to the appropriate authorization provided in this section in a manner required by the department that facilitates the evaluation by the legislature of the benefit to the state of these deductions."

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