SENATE BILL 485

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

William F. Burt

AN ACT

RELATING TO TAXATION; PROVIDING FOR A DEDUCTION FROM GROSS RECEIPTS OF CERTAIN INFRASTRUCTURE CONSTRUCTION SERVICES PERFORMED ON MILITARY BASES.

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 OF CONSTRUCTION SERVICES--MILITARY BASES.--

          A. From July 1, 2017 through June 30, 2022, receipts from the sale of services for construction of infrastructure on a military base to support a training mission involving F-16 tactical fighter jets in this state may be deducted from gross receipts.

          B. The purpose of the deduction provided by this section is to:

                (1) make the state more competitive in the decision by the United States air force of whether to continue a training mission involving F-16 tactical fighter jets in New Mexico; and

                (2) improve economic development in the state by generating more revenue from out-of-state sources.

          C. A taxpayer allowed a deduction in accordance with this section shall report the amount of the deduction separately in a manner required by the department.

          D. Beginning in 2018, the department shall compile an annual report on the deduction provided by this section that includes the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the deduction. The department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the deduction and whether the deduction is performing the purpose for which it was created."

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