0001|                         HOUSE BILL 721
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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|                      LEO C. WATCHMAN, JR.
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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 A CREDIT AGAINST THE SEVERANCE
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0013|     TAX ON COAL AND CERTAIN OTHER TAXES WITH RESPECT TO COAL
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0014|     PRODUCTION; ENACTING A NEW SECTION OF THE NMSA 1978.
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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.  [<u>NEW MATERIAL</u>]  INTERGOVERNMENTAL COAL TAX
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0018|     CREDIT.--
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0019|            A.  With respect to products severed on or after July
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0020|     1, 1996 from a new mine on Indian tribal land, the person who is
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0021|     liable for the payment of the severance tax on coal, the surtax
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0022|     on coal, the oil and gas conservation tax, the coal resource
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0023|     excise tax and the gross receipts tax may claim a credit against
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0024|     the sum of the severance tax on coal, the surtax on coal, the
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0025|     oil and gas conservation tax, the coal resource excise tax and
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0001|     the gross receipts tax due for the production month if a
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0002|     severance, ad valorem, possessory interest, excise or similar
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0003|     tax has been imposed on coal by an Indian nation, tribe or
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0004|     pueblo.  The credit provided by this subsection may be referred
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0005|     to as the "intergovernmental coal tax credit".
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0006|            B.  For the purposes of this section:
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0007|                 (1) "Indian tribal land" means land within the
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0008|     exterior boundaries of an Indian reservation or pueblo grant or
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0009|     lands held in trust by the United States for an Indian nation,
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0010|     tribe, pueblo or tribal member or lands held by an Indian
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0011|     nation, tribe, pueblo or tribal member subject to restrictions
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0012|     against alienation imposed by the United States.  For purposes
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0013|     of this subsection, "tribal member" means an individual whose
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0014|     name appears on the official roll of an Indian nation, tribe or
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0015|     pueblo;
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0016|                 (2) "new mine" means a mining operation that is
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0017|     permitted pursuant to the federal Surface Mining Control and
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0018|     Reclamation Act of 1977 and that commences production on or
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0019|     after July 1, 1996; 
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0020|                 (3) "person" means any individual, estate,
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0021|     trust, receiver, business trust, corporation, firm,
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0022|     copartnership, cooperative, joint venture, association, limited
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0023|     liability company or other group or combination acting as a
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0024|     unit; and
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0025|                 (4) "production month" means the month for which
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0001|     the severance tax on coal, the surtax on coal, the oil and gas
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0002|     conservation tax, the coal resource excise tax and the gross
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0003|     receipts tax are being reported and paid.
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0004|            C.  The intergovernmental coal tax credit shall be
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0005|     determined separately for each new mine and shall be equal to
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0006|     seventy-five percent of the lesser of:
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0007|                 (1) the aggregate amount of severance tax on
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0008|     coal, surtax, ad valorem tax, possessory interest tax, excise
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0009|     tax or similar tax imposed by the Indian nation, tribe or pueblo
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0010|     upon the coal severed from a new mine; and
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0011|                 (2)   the amount of severance tax on coal, the
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0012|     surtax on coal, the oil and gas conservation tax, the coal
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0013|     resource excise tax and the gross receipts tax due for the
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0014|     production month with respect to the coal severed from a new
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0015|     mine.
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0016|            D.  If, after March 1, 1996, an Indian nation, tribe
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0017|     or pueblo increases any severance, privilege, ad valorem or
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0018|     similar tax applicable to coal to which the tax credits provided
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0019|     by this section apply, the amount of the intergovernmental coal
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0020|     tax credit to which the increase applies shall be reduced by the
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0021|     difference between the aggregate amount of tax due to the Indian
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0022|     nation, tribe or pueblo and the aggregate amount of tax that
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0023|     would have been imposed by the terms of the tax or taxes in
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0024|     effect on March 1, 1996.
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0025|            E.  Notwithstanding any other provision of law to the
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0001|     contrary, the amount of credit taken and allowed shall be
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0002|     applied proportionately against the amount of the severance tax
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0003|     on coal, the surtax on coal, the oil and gas conservation tax,
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0004|     the coal resource excise tax and the gross receipts tax.
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0005|            F.  The taxation and revenue department shall
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0006|     administer and interpret the provisions of this section in
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0007|     accordance with the provisions of the Tax Administration Act.
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0008|            G.  The burden of showing entitlement to a credit
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0009|     authorized by this section is on the taxpayer claiming it, and
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0010|     the taxpayer shall furnish to the appropriate tax collecting
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0011|     agency, in the manner determined by the taxation and revenue
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0012|     department, proof of payment of any tribal tax on which the
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0013|     credit is based.
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0014|       Section 2.  EFFECTIVE DATE.--The effective date of the
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0015|     provisions of this act is July 1, 1996.
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0016|                              
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0017|                 
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0018|                  
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0019|                         HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR
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0020|                         HOUSE BILL 721
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0021|     42nd legislature - STATE OF NEW MEXICO - second session, 1996
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0022|                                
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0023|     
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0024|     
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0025|                                
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0001|     
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0002|     
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0003|     
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0004|                             AN ACT
    |
0005|     RELATING TO TAXATION; PROVIDING A CREDIT AGAINST THE SEVERANCE
    |
0006|     TAX ON COAL AND CERTAIN OTHER TAXES WITH RESPECT TO COAL
    |
0007|     PRODUCTION; ENACTING A NEW SECTION OF THE NMSA 1978.
    |
0008|     
    |
0009|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0010|       Section 1.  INTERGOVERNMENTAL COAL TAX CREDIT.--
    |
0011|            A.  With respect to products severed on or after July
    |
0012|     1, 1996 from a new mine on Indian tribal land, the person who is
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0013|     liable for the payment of the severance tax on coal, the surtax
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0014|     on coal, the oil and gas conservation tax and the coal resource
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0015|     excise tax may claim a credit against the sum of the severance
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0016|     tax on coal, the surtax on coal, the oil and gas conservation
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0017|     tax and the coal resource excise tax for the production month if
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0018|     a severance, ad valorem, possessory interest or similar tax is
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0019|     imposed on coal by an Indian nation, tribe or pueblo.  The
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0020|     credit provided by this subsection may be referred to as the
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0021|     "intergovernmental coal tax credit".
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0022|            B.  For the purposes of this section:
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0023|                 (1)  "Indian tribal land" means all land that on
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0024|     March 1, 1996 was:
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0025|                      (a)  within the exterior boundaries of an
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0001|     Indian reservation or pueblo grant, except land held in fee by a
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0002|     person who is not a tribal member; or
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0003|                      (b)  lands held in trust by the United
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0004|     States for an Indian nation, tribe or pueblo;
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0005|                 (2)  "new mine" means a mining operation that
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0006|     receives its initial permit pursuant to the federal Surface
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0007|     Mining Control and Reclamation Act of 1977 on or after July 1,
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0008|     1996 and that commences production on or after July 1, 1996; 
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0009|                 (3)  "person" means any individual, estate,
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0010|     trust, receiver, business trust, corporation, firm,
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0011|     copartnership, cooperative, joint venture, association, limited
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0012|     liability company or other group or combination acting as a
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0013|     unit;
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0014|                 (4)  "production month" means the month for
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0015|     which the severance tax on coal, the surtax on coal, the oil and
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0016|     gas conservation tax and the coal resource excise tax are being
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0017|     reported and paid; and
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0018|                 (5)  "tribal member" means an individual whose
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0019|     name properly appears on the official roll of an Indian nation,
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0020|     tribe or pueblo.
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0021|            C.  The intergovernmental coal tax credit shall be
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0022|     determined separately for each production month for each new mine
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0023|     and shall be equal to seventy-five percent of the lesser of:
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0024|                 (1)  the aggregate amount of severance tax on
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0025|     coal, surtax, ad valorem tax, possessory interest tax or similar
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0001|     tax in effect on March 1, 1996 imposed by the Indian nation, tribe
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0002|     or pueblo upon the coal severed from a new mine; or
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0003|                 (2)  the amount of severance tax on coal, the
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0004|     surtax on coal, the oil and gas conservation tax and the coal
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0005|     resource excise tax due for the production month with respect to
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0006|     the coal severed from a new mine.
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0007|            D.  If, after March 1, 1996, an Indian nation, tribe or
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0008|     pueblo increases any severance, privilege, ad valorem or similar
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0009|     tax applicable to coal to which the tax credits provided by this
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0010|     section apply, the amount of the intergovernmental coal tax credit
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0011|     for any production month to which the increase applies shall be
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0012|     reduced by the difference between the aggregate amount of tax due
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0013|     to the Indian nation, tribe or pueblo and the aggregate amount of
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0014|     tax that would have been imposed by the terms of the tax or taxes
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0015|     in effect on March 1, 1996.
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0016|            E.  Notwithstanding any other provision of law to the
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0017|     contrary, the amount of credit taken and allowed shall be applied
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0018|     proportionately against the amount of the severance tax on coal,
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0019|     the surtax on coal, the oil and gas conservation tax and the coal
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0020|     resource excise tax due with respect to the coal to which the tax
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0021|     credit applies.
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0022|            F.  The taxation and revenue department shall administer
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0023|     and interpret the provisions of this section in accordance with the
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0024|     provisions of the Tax Administration Act.
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0025|            G.  The burden of showing entitlement to a credit
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0001|     authorized by this section is on the taxpayer claiming it, and the
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0002|     taxpayer shall furnish to the appropriate tax collecting agency, in
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0003|     the manner determined by the taxation and revenue department, proof
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0004|     of payment of any tribal tax on which the credit is based.
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0005|       Section 2.  EFFECTIVE DATE.--The effective date of the
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0006|     provisions of this act is July 1, 1996.
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0007|                               
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0008|                               State of New Mexico
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0009|                     House of Representatives
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0010|   
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0011|                     FORTY-SECOND LEGISLATURE
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0012|                       SECOND SESSION, 1996
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0013|   
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0014|   
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0015|                                               February 14, 1996
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0016|   
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0017|   
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0018|   Mr. Speaker:
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0019|   
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0020|       Your TAXATION AND REVENUE COMMITTEE, to whom has
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0021|   been referred
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0022|   
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0023|                          HOUSE BILL 721
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0024|                                  
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0025|   has had it under consideration and reports same with
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0001|   recommendation that it DO NOT PASS, but that
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0002|   
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0003|       HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR
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0004|                          HOUSE BILL 721
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0005|                                  
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0006|   DO PASS, and thence referred to the APPROPRIATIONS AND
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0007|   FINANCE 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|                                <u>                                 
</u>    |
<u></u>0014| <u>  </u>                            Jerry W. Sandel, Chairman
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0015|   
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0016|   
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0017|   Adopted <u>                    </u>    Not Adopted <u>                      </u>
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0018|            (Chief Clerk)                       (Chief Clerk)
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0019|   
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0020|                       Date <u>            </u>
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0021|   
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0022|   The roll call vote was<u> 8 </u> For<u> 0 </u> Against
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0023|   Yes:          8
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0024|   Excused: None
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0025|   Absent:  Crook, Gonzales, Parsons, Ryan, Stell
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0001|   
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0002|   
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0003|   H0721TR1
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