0001|                        SENATE BILL 410
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                         ROMAN M. MAES
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0006|     
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0007|     
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0008|     
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0009|     
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0010|     
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0011|                             AN ACT
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0012|     RELATING TO TAXATION; PROVIDING DEDUCTIONS FROM GROSS RECEIPTS
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0013|     FOR CONSTRUCTION SERVICES AND MATERIALS, MANUFACTURING EQUIPMENT
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0014|     AND INSTALLATION SERVICES.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|       Section 1.  A new section of the Gross Receipts and
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0018|     Compensating Tax Act is enacted to read:
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0019|       "[<u>NEW MATERIAL</u>]  DEDUCTION--GROSS RECEIPTS TAX--MANUFACTURING OPERATIONS--CONSTRUCTION AND INSTALLATION
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0020|     SERVICES--NEW EQUIPMENT SALES--DEFINITIONS.--
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0021|            A.  Receipts from the sale of construction services
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0022|     may be deducted from gross receipts if:
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0023|                 (1)  the service provided is to construct or
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0024|     expand facilities for a manufacturing operation; and
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0025|                 (2)  the construction service is sold to a 
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0001|     person who delivers a nontaxable transaction certificate to the
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0002|     person performing the construction service.
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0003|            B.  Receipts from the sale of construction materials
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0004|     purchased for use to expand an existing or construct a new
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0005|     manufacturing operation located in New Mexico may be deducted
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0006|     from gross receipts if the materials are purchased for a person
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0007|     who delivers a nontaxable transaction certificate to the person
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0008|     selling the materials.
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0009|            C.  Receipts from the sale of equipment purchased for
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0010|     use in a new or expanded manufacturing operation located in New
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0011|     Mexico may be deducted from gross receipts if the equipment is
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0012|     purchased for a person who delivers a nontaxable transaction
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0013|     certificate to the person selling the equipment.
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0014|            D.  Receipts from the sale of installation services
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0015|     necessary to install equipment in a new or expanded
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0016|     manufacturing operation located in New Mexico may be deducted
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0017|     from gross receipts if the installation service is sold to a
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0018|     person who delivers a nontaxable transaction certificate to the
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0019|     person performing the installation services.
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0020|            E.  As used in this section:
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0021|                 (1)  "construction service" means a service
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0022|     necessary to construct or expand a manufacturing operation;
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0023|                 (2)  "installation service" means a service
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0024|     required to install and make operational equipment necessary to
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0025|     conduct a manufacturing operation; and
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0001|                 (3)  "manufacturing operation" means a plant,
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0002|     including a genetic testing and production facility, employing
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0003|     personnel to perform production or assembly tasks to produce
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0004|     goods.
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0005|            F.  Election by a taxpayer to deliver the nontaxable
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0006|     transaction certificate necessary to support a deduction from
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0007|     gross receipts pursuant to the provisions of this section shall
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0008|     preclude availability to that taxpayer of the investment tax
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0009|     credit that would be available on the same equipment pursuant to
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0010|     the provisions of Chapter 7, Article 9A NMSA 1978."
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0011|       Section 2.  EFFECTIVE DATE.--The effective date of the
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0012|     provisions of this act is July 1, 1996.
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0013|                              
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0014|     
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0015|     
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0016|           
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0017|   
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0018|                    FORTY-SECOND LEGISLATURE
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0019|                      SECOND SESSION, 1996
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0020|   
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0021|   
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0022|                                              FEBRUARY 4, 1996
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0023|   
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0024|   Mr. President:
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0025|   
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0001|     Your COMMITTEES' COMMITTEE, to whom has been referred
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0002|   
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0003|                           SENATE BILL 410
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0004|   
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0005|   has had it under consideration and finds same to be GERMANE, PURSUANT
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0006|   TO CONSTITUTIONAL PROVISIONS, and thence referred to the WAYS AND
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0007|   MEANS COMMITTEE.
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0008|   
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0009|                              Respectfully submitted,
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0010|   
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0011|   
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0012|   
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0013|   
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0014|                              __________________________________
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0015|                              SENATOR MANNY M. ARAGON, Chairman 
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0016|   
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0017|   
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0018|   
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0019|   Adopted_______________________ Not Adopted_______________________
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0020|             (Chief Clerk)                        (Chief Clerk)
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0021|   
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0022|   
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0023|                     Date ________________________
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0024|   
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0025|   
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0001|   
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0002|     S0410CC1  
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0003|   
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0004|                      FORTY-SECOND LEGISLATURE             SB 410/a
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0005|                        SECOND SESSION, 1996
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0006|   
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0007|                                                   February 7, 1996
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0008|   
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0009|   Mr. President:
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0010|   
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0011|     Your WAYS AND MEANS COMMITTEE, to whom has been referred
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0012|   
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0013|                           SENATE BILL 410
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0014|   
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0015|   has had it under consideration and reports same with recommendation that
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0016|   it DO PASS, amended as follows:
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0017|   
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0018|     1.  On page 1, line 13, before the period insert "; DECLARING AN
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0019|   EMERGENCY".
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0020|   
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0021|     2.  On page 3, line 1, strike the comma, and on line 2, strike
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0022|   "including a genetic testing and production facility,".
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0023|   
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0024|     3.  On page 3, strike lines 11 and 12, and insert in lieu thereof
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0025|   the following section:
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0001|   
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0002|     "Section 2.  EMERGENCY.--It is necessary for the public peace,
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0003|   health and safety that this act take effect immediately.".,
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0004|   
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0005|   and thence referred to the FINANCE COMMITTEE. 
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0006|         
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0007|                  Respectfully submitted,
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0008|   
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0009|   
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0010|   
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0011|                  __________________________________
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0012|                  TITO D. CHAVEZ, Chairman 
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0013|   
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0014|   
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0015|   
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0016|   Adopted_______________________ Not Adopted_______________________
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0017|             (Chief Clerk)                          (Chief Clerk)
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0018|   
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0019|   
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0020|                     Date ________________________
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0021|   
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0022|     
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0023|   The roll call vote was <u> 5 </u> For <u> 0 </u> Against
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0024|   Yes:  5
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0025|   No:     0
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0001|   Excused:   Campos, Jennings, Riley
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0002|   Absent: None
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0003|   
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0004|   
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0005|   
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0006|   
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0007|   
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0008|     S0410WM1                                               .111901.1
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0009|   
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0010|                      FORTY-SECOND LEGISLATURE
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0011|                        SECOND SESSION, 1996
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0012|   
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0013|   
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0014|                                                   February 9, 1996
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0015|   
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0016|   Mr. President:
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0017|   
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0018|     Your FINANCE COMMITTEE, to whom has been referred
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0019|   
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0020|                     SENATE BILL 410, as amended
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0021|   
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0022|   has had it under consideration and reports same with recommendation that
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0023|   it DO PASS.
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0024|   
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0025|                              Respectfully submitted,
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0001|   
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0002|   
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0003|   
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0004|                              __________________________________
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0005|                              Ben D. Altamirano, Chairman 
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0006|   
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0007|   
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0008|   
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0009|   Adopted_______________________ Not Adopted_______________________
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0010|             (Chief Clerk)                          (Chief Clerk)
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0011|   
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0012|   
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0013|   
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0014|                     Date ________________________
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0015|   
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0016|   
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0017|   The roll call vote was <u> 8 </u> For <u> 0 </u> Against
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0018|   Yes:  8
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0019|   No:        0
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0020|   Excused:   Donisthorpe, Duran, Ingle, Kidd, Kysar
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0021|   Absent:    None
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0022|   
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0023|   
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0024|   S0410FC1
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0025|   
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