0001|                            HOUSE BILL 489
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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|                         JAMES ROGER MADALENA
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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; CLARIFYING THE DEDUCTION FOR SERVICES
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0012|     PERFORMED ON AN INDIAN RESERVATION; AMENDING SECTIONS OF THE
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0013|     GROSS RECEIPTS AND COMPENSATING TAX ACT.
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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 7-9-48 NMSA 1978 (being Laws 1969,
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0017|     Chapter 144, Section 38, as amended) is amended to read:
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0018|          "7-9-48.  DEDUCTION--GROSS RECEIPTS TAX--GOVERNMENTAL
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0019|     GROSS RECEIPTS--SALE OF A SERVICE FOR RESALE.--Receipts from
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0020|     selling a service for resale may be deducted from gross
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0021|     receipts or from governmental gross receipts if the sale is
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0022|     made to a person who delivers a nontaxable transaction
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0023|     certificate to the seller.  The buyer delivering the
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0024|     nontaxable transaction certificate must separately state the
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0025|     value of the service purchased in his charge for the service
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<center>- 1 -</center>

0001|     on its subsequent sale, and the subsequent sale must be in the
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0002|     ordinary course of business and subject to the gross receipts
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0003|     tax or governmental gross receipts tax.  <u>Receipts from
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<u></u>0004| <u>    selling a service performed on the land of an Indian nation,
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<u></u>0005| <u>    tribe or pueblo for sale to a person who is reselling the
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<u></u>0006| <u>    service to an Indian nation, tribe or pueblo or member of an
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<u></u>0007| <u>    Indian nation, tribe or pueblo may be deducted from gross
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<u></u>0008| <u>    receipts.</u>"
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0009|          Section 2.  Section 7-9-52 NMSA 1978 (being Laws 1969,
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0010|     Chapter 144, Section 42) is amended to read:
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0011|          "7-9-52.  DEDUCTION--GROSS RECEIPTS TAX--SALE OF
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0012|     CONSTRUCTION SERVICES TO PERSONS ENGAGED IN THE CONSTRUCTION
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0013|     BUSINESS.--
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0014|               A.  Receipts from selling a construction service
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0015|     may be deducted from gross receipts if the sale is made to a
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0016|     person engaged in the construction business who delivers a
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0017|     nontaxable transaction certificate to the person performing
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0018|     the construction service.
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0019|               B.  The buyer delivering the nontaxable transaction
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0020|     certificate must have the construction services performed
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0021|     upon:
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0022|                    (1)  a construction project which is subject
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0023|     to the gross receipts tax upon its completion or upon the
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0024|     completion of the overall construction project of which it is
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0025|     a part; <s>[or]</s>
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<center>- 2 -</center>

0001|                    (2)  a construction project which is subject
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0002|     to the gross receipts tax upon the sale in the ordinary course
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0003|     of business of the real property upon which it was
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0004|     constructed; <u>or
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<u></u>0005| <u>                   (3)  a construction project on the land of an
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<u></u>0006| <u>    Indian nation, tribe or pueblo that is being sold to an Indian
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<u></u>0007| <u>    nation, tribe or pueblo or a member of an Indian nation, tribe
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<u></u>0008| <u>    or pueblo</u>."
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0009|                              
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