SENATE BILL 118
56th legislature - STATE OF NEW MEXICO - second session, 2024
Gregory A. Baca and Joshua A. Sanchez
RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR DYED DIESEL USED FOR AGRICULTURAL PURPOSES.
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--DYED DIESEL USED FOR AGRICULTURAL PURPOSES.--
A. Prior to July 1, 2029, receipts from the sale and use of special fuel dyed in accordance with federal regulations and used for agricultural purposes may be deducted from gross receipts.
B. 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. The department shall compile an annual report on the deduction provided by this section that shall include 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 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."
SECTION 2. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2024.
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