HOUSE BILL 222
56th legislature - STATE OF NEW MEXICO - first session, 2023
Christine Trujillo and Joshua N. Hernandez and
Meredith A. Dixon and Linda Serrato and Eliseo Lee Alcon
RELATING TO TAXATION; CREATING A GROSS RECEIPTS TAX DEDUCTION AND GOVERNMENTAL GROSS RECEIPTS TAX DEDUCTION FOR THE SALE OF DIAPERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-9-120 NMSA 1978 (being Laws 2022, Chapter 47, Section 15) is amended to read:
"7-9-120. DEDUCTION--GROSS RECEIPTS AND GOVERNMENTAL GROSS RECEIPTS--FEMININE HYGIENE PRODUCTS--DIAPERS.--
A. Receipts from the sale of feminine hygiene products may be deducted from gross receipts and governmental gross receipts.
B. Receipts from the sale of diapers may be deducted from gross receipts and governmental gross receipts.
[B.] C. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.
[C.] D. The department shall compile an annual report on the [deduction] deductions provided by this section that shall include the number of taxpayers that claimed [the] each deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the [deduction] deductions. The department shall present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the [deduction] deductions.
[D.] E. As used in this section:
(1) "diaper" means a basic garment for infants or incontinent adults consisting of a folded cloth or other absorbent material drawn up between the legs and fastened about the waist; and
(2) "feminine hygiene products" means tampons, menstrual pads and sanitary napkins, pantiliners, menstrual sponges and menstrual cups."
SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2023.
- 2 -