46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO TAXATION; PERMITTING A GROSS RECEIPTS TAX DEDUCTION FOR CERTAIN SALES TO MANUFACTURERS WITHOUT DELIVERY OF A NONTAXABLE TRANSACTION CERTIFICATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-9-46 NMSA 1978 (being Laws 1969, Chapter 144, Section 36, as amended) is amended to read:

"7-9-46. DEDUCTION--GROSS RECEIPTS TAX--GOVERNMENTAL GROSS RECEIPTS--SALES TO MANUFACTURERS.--

A. Receipts from selling tangible personal property may be deducted from gross receipts or from governmental gross receipts if the sale is made to a person engaged in the business of manufacturing who [delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate] is a registered taxpayer. The buyer must incorporate the tangible personal property as an ingredient or component part of the product that he is in the business of manufacturing.

B. As used in this section, "registered taxpayer" means a person engaging in business in New Mexico who is registered with the department for the purpose of reporting and paying gross receipts, compensating and withholding tax."

Section 2. APPLICABILITY.--The provisions of this act apply to transactions occurring on or after July 1, 2003.