0001|                            HOUSE BILL 27
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          WILLIAM E. PORTER
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0005|     
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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|                                AN ACT
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0011|     RELATING TO TAXATION; EXPANDING THE GROSS RECEIPTS TAX
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0012|     DEDUCTION FOR SALE OF AEROSPACE SERVICES TO CERTAIN
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0013|     ORGANIZATIONS.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  Section 7-9-54.1 NMSA 1978 (being Laws 1992,
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0017|     Chapter 40, Section 1, as amended) is amended to read:
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0018|          "7-9-54.1.  DEDUCTION--GROSS RECEIPTS FROM SALE OF
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0019|     AEROSPACE SERVICES TO CERTAIN ORGANIZATIONS.--
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0020|               A.  As used in this section:
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0021|                    (1)  "aerospace services" means research and
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0022|     development services <u>and operational test and evaluation
</u>    |
<u></u>0023| <u>    services</u> sold to or for resale to an organization for resale
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0024|     by the organization to the United States <s>[air force]</s>
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0025|     <u>department of defense</u>; and
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<center>- 1 -</center>

0001|                    (2)  "organization" means <u>a major range and
</u>    |
<u></u>0002| <u>    test facility base designated by an act of congress or</u> an
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0003|     organization described in Subsection A of Section 7-9-29 NMSA
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0004|     1978 other than a prime contractor operating facilities in New
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0005|     Mexico designated as a national laboratory by act of congress.
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0006|               B.  Receipts from performing or selling, on or
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0007|     after October 1, 1995, an aerospace service for resale may be
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0008|     deducted from gross receipts if the sale is made to a buyer
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0009|     who delivers a nontaxable transaction certificate.  The buyer
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0010|     delivering the nontaxable transaction certificate shall
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0011|     separately state the value of the aerospace service purchased
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0012|     in the buyer's charge for the aerospace service on its
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0013|     subsequent sale to an organization or, if the buyer is an
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0014|     organization, on the organization's subsequent sale to the
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0015|     United States, and the subsequent sale shall be in the
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0016|     ordinary course of business of selling aerospace services to
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0017|     an organization or to the United States.
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0018|               C.  A percentage of the receipts from selling
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0019|     aerospace services to or for resale to an organization may be
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0020|     deducted from gross receipts in accordance with the following
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0021|     table:
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0022|                                                      Deductible
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0023|          Receipts During the Period                  Percentage
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0024|          October 1, 1995 through September 30, 1996       10%  
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0025|          October 1, 1996 through September 30, 1997       25%  
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<center>- 2 -</center>

0001|          October 1, 1997 through September 30, 1999       50%  
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0002|          October 1, 1999 and thereafter                  100%."
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0003|          Section 2.  EFFECTIVE DATE.--The effective date of the
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0004|     provisions of this act is July 1, 1998.
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0005|                              
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