0001| HOUSE BILL 57 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| PAULINE K. GUBBELS | 0006| | 0007| | 0008| | 0009| FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE | 0010| | 0011| AN ACT | 0012| RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION | 0013| FOR RECEIPTS OF CERTAIN NONPROFIT ORGANIZATIONS; PROVIDING FOR | 0014| REPORTING AND PAYMENT OF TAXES; AMENDING AND ENACTING SECTIONS | 0015| OF THE NMSA 1978. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. Section 7-1-15 NMSA 1978 (being Laws 1969, | 0019| Chapter 31, Section 1, as amended) is amended to read: | 0020| "7-1-15. SECRETARY MAY SET TAX REPORTING AND PAYMENT | 0021| INTERVALS.--The secretary may, pursuant to regulation, allow | 0022| taxpayers with an anticipated tax liability of less than two | 0023| hundred dollars ($200) a month or taxpayers who claim gross | 0024| receipts deductions pursuant to Section 7-9-85 or 7-9-85.1 NMSA | 0025| 1978 to report and pay taxes at intervals [which] that the | 0001| secretary may specify. However, unless specifically permitted | 0002| by law, an interval shall not exceed six months. The secretary | 0003| may permit annual reporting and payment of taxes by taxpayers | 0004| who claim gross receipts deductions pursuant to Section 7-9-85 | 0005| or 7-9-85.1 NMSA 1978." | 0006| Section 2. Section 7-9-39 NMSA 1978 (being Laws 1969, | 0007| Chapter 144, Section 32, as amended) is amended to read: | 0008| "7-9-39. EXEMPTION--GROSS RECEIPTS TAX--FEES FROM SOCIAL | 0009| ORGANIZATIONS.-- | 0010| A. Exempted from the gross receipts tax are the | 0011| receipts from dues and registration fees of nonprofit social, | 0012| fraternal, political, trade, labor or professional organizations | 0013| and business leagues if the receipts are not eligible for | 0014| deduction from gross receipts pursuant to Section 7-9-85.1 NMSA | 0015| 1978. | 0016| B. For the purposes of this section: | 0017| (1) "dues" means amounts that a member of an | 0018| organization pays at recurring intervals to retain membership in | 0019| an organization where such amounts are used for the general | 0020| maintenance and upkeep of the organization; and | 0021| (2) "registration fees" means amounts paid by | 0022| persons to attend a specific event sponsored by an organization | 0023| to defray the cost of the event." | 0024| Section 3. Section 7-9-85 NMSA 1978 (being Laws 1994, | 0025| Chapter 43, Section 1) is amended to read: | 0001| "7-9-85. DEDUCTION--GROSS RECEIPTS TAX--CERTAIN | 0002| ORGANIZATION FUNDRAISERS.--Receipts from not more than two | 0003| fundraising events annually conducted by an organization that is | 0004| exempt from the federal income tax as an organization described | 0005| in Section 501(c), other than an organization described in | 0006| Section 501(c)(3), of the United States Internal Revenue Code of | 0007| 1986, as amended, may be deducted from gross receipts if the | 0008| receipts of the organization are not eligible for deduction from | 0009| gross receipts pursuant to Section 7-9-85.1 NMSA 1978." | 0010| Section 4. A new section of the Gross Receipts and | 0011| Compensating Tax Act, Section 7-9-85.1 NMSA 1978, is enacted to | 0012| read: | 0013| "7-9-85.1. [NEW MATERIAL] DEDUCTION--GROSS RECEIPTS | 0014| TAX--RECEIPTS OF CERTAIN NONPROFIT ORGANIZATIONS.-- | 0015| A. Receipts of an organization may be deducted from | 0016| gross receipts if the organization: | 0017| (1) is exempt from the federal income tax as an | 0018| organization described in Section 501(c), other than: | 0019| (a) an organization described in Section | 0020| 501(c)(3) of the United States Internal Revenue Code of 1986, as | 0021| amended; or | 0022| (b) an organization that carries on | 0023| chamber of commerce, visitor bureau and convention bureau | 0024| functions and is described in Section 501(c)(6) of the United | 0025| States Internal Revenue Code of 1986, as amended; | 0001| (2) has gross receipts for the qualification | 0002| year of less than eighty thousand dollars ($80,000); and | 0003| (3) incurred less than ten percent of its | 0004| receipts in the qualification year for wages and salaries of | 0005| organization personnel. | 0006| B. In any period for which the receipts of an | 0007| organization may be deducted pursuant to this section, the | 0008| organization may not claim nor may the department allow a | 0009| deduction of the organization's receipts during the period under | 0010| Section 7-9-85 NMSA 1978. | 0011| C. For the purposes of this section, the term | 0012| "qualification year" means the organization's taxable year for | 0013| federal income tax purposes ending within six months of the | 0014| beginning of either the calendar or state fiscal year during | 0015| which calendar or fiscal year the organization claims or intends | 0016| to claim the deduction provided by this section." | 0017| Section 5. EFFECTIVE DATE.--The effective date of the | 0018| provisions of this act is July 1, 1996. | 0019| - 4 - | 0020| | 0021| | 0022| | 0023| | 0024| State of New Mexico | 0025| House of Representatives | 0001| | 0002| FORTY-SECOND LEGISLATURE | 0003| SECOND SESSION, 1996 | 0004| | 0005| | 0006| February 7, 1996 | 0007| | 0008| | 0009| Mr. Speaker: | 0010| | 0011| Your TAXATION AND REVENUE COMMITTEE, to whom has | 0012| been referred | 0013| | 0014| HOUSE BILL 57 | 0015| | 0016| has had it under consideration and reports same with | 0017| recommendation that it DO PASS, amended as follows: | 0018| | 0019| 1. On page 3, line 14, after "Receipts" insert "of not more | 0020| than eighty thousand dollars ($80,000)". | 0021| | 0022| 2. On page 3, line 17, after "(c)" strike the remainder of | 0023| the line and strike all of lines 18 through 24 and insert in lieu | 0024| thereof "(4) or 501(c)(10) of the United States Internal Revenue | 0025| Code of 1986, as amended;"., | 0001| | 0002| and thence referred to the APPROPRIATIONS AND FINANCE | 0003| COMMITTEE. | 0004| | 0005| Respectfully submitted, | 0006| | 0007| | 0008| | 0009| | 0010| Jerry W. Sandel, Chairman | 0011| | 0012| | 0013| Adopted Not Adopted | 0014| | 0015| (Chief Clerk) (Chief Clerk) | 0016| | 0017| Date | 0018| | 0019| The roll call vote was 9 For 0 Against | 0020| Yes: 9 | 0021| Excused: Gallegos, Gonzales, Hawkins, Lujan | 0022| Absent: None | 0023| | 0024| | 0025| .111880.2 | 0001| H0057TR1 State of New Mexico | 0002| House of Representatives | 0003| | 0004| FORTY-SECOND LEGISLATURE | 0005| SECOND SESSION, 1996 | 0006| | 0007| | 0008| February 10, 1996 | 0009| | 0010| | 0011| Mr. Speaker: | 0012| | 0013| Your APPROPRIATIONS AND FINANCE COMMITTEE, to | 0014| whom has been referred | 0015| | 0016| HOUSE BILL 57, as amended | 0017| | 0018| has had it under consideration and reports same with | 0019| recommendation that it DO PASS, amended as follows: | 0020| | 0021| 1. On page 4, between lines 4 and 5, insert the following: | 0022| | 0023| "B. Receipts from gambling, except paper bingo and | 0024| raffles, are not deductible even if total receipts are less than | 0025| eighty thousand dollars ($80,000).". | 0001| | 0002| 2. Reletter the succeeding subsections accordingly. | 0003| | 0004| Respectfully submitted, | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| Max Coll, Chairman | 0011| | 0012| | 0013| Adopted Not Adopted | 0014| | 0015| (Chief Clerk) (Chief Clerk) | 0016| | 0017| Date | 0018| | 0019| The roll call vote was 8 For 4 Against | 0020| Yes: 8 | 0021| No: Gentry, Martinez, Reyes, Watchman | 0022| Excused: Bird, Casey, Light, Picraux, Saavedra, Wallace | 0023| Absent: None | 0024| | 0025| | 0001| | 0002| H0057AF1 | 0003| | 0004| FORTY-SECOND LEGISLATURE | 0005| SECOND SESSION, 1996 | 0006| | 0007| | 0008| February 14, 1996 | 0009| | 0010| Mr. President: | 0011| | 0012| Your WAYS AND MEANS COMMITTEE, to whom has been | 0013| referred | 0014| | 0015| HOUSE BILL 57, as amended | 0016| | 0017| has had it under consideration and reports same with | 0018| recommendation that it DO PASS, and thence referred to the | 0019| FINANCE COMMITTEE. | 0020| | 0021| Respectfully submitted, | 0022| | 0023| | 0024| | 0025| __________________________________ | 0001| TITO D. CHAVEZ, Chairman | 0002| | 0003| | 0004| | 0005| Adopted_______________________ Not Adopted_______________________ | 0006| (Chief Clerk) (Chief Clerk) | 0007| | 0008| | 0009| Date ________________________ | 0010| | 0011| | 0012| The roll call vote was 5 For 0 Against | 0013| Yes: 5 | 0014| No: 0 | 0015| Excused: Campos, Riley, Wiener | 0016| Absent: None | 0017| | 0018| | 0019| H0057WM1 | 0020| | 0021| | 0022| | 0023| FORTY-SECOND LEGISLATURE | 0024| SECOND SESSION, 1996 | 0025| | 0001| | 0002| February 14, 1996 | 0003| | 0004| Mr. President: | 0005| | 0006| Your FINANCE COMMITTEE, to whom has been referred | 0007| | 0008| HOUSE BILL 57, as amended | 0009| | 0010| has had it under consideration and reports same with | 0011| recommendation that it DO PASS. | 0012| | 0013| Respectfully submitted, | 0014| | 0015| | 0016| | 0017| __________________________________ | 0018| Ben D. Altamirano, Chairman | 0019| | 0020| | 0021| | 0022| Adopted_______________________ Not Adopted_______________________ | 0023| (Chief Clerk) (Chief Clerk) | 0024| | 0025| | 0001| | 0002| Date ________________________ | 0003| | 0004| | 0005| The roll call vote was 8 For 0 Against | 0006| Yes: 8 | 0007| No: 0 | 0008| Excused: Donisthorpe, Duran, Ingle, Kidd, Kysar | 0009| Absent: None | 0010| | 0011| | 0012| H0057FC1 | 0013| |