0001| SENATE BILL 374
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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| MANNY M. ARAGON
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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; REMOVING HOSPITALS FROM CERTAIN GROSS
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0013| RECEIPTS AND COMPENSATING TAX EXEMPTIONS AND DEDUCTIONS;
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0014| AMENDING AND REPEALING SECTIONS 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. Section 7-9-15 NMSA 1978 (being Laws 1970,
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0018| Chapter 12, Section 1, as amended) is amended to read:
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0019| "7-9-15. EXEMPTION--COMPENSATING TAX--CERTAIN
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0020| ORGANIZATIONS.--Exempted from the compensating tax is the use of
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0021| property by organizations that demonstrate to the department
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0022| that they have been granted exemption from the federal income
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0023| tax by the United States commissioner of internal revenue as
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0024| organizations described in Section 501(c)(3) of the United
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0025| States Internal Revenue Code of [1954] 1986, as amended [or
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renumbered], other than organizations that are hospitals
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0002| licensed by the department of health, in the conduct of
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0003| functions described in Section 501(c)(3). The use of property
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0004| as an ingredient or component part of a construction project is
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0005| not a use in the conduct of functions described in Section
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0006| 501(c)(3). This section does not apply to the use of property
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0007| in an unrelated trade or business as defined in Section 513 of
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0008| the United States Internal Revenue Code of [1954] 1986, as
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0009| amended [or renumbered]."
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0010| Section 2. Section 7-9-29 NMSA 1978 (being Laws 1970,
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0011| Chapter 12, Section 3, as amended) is amended to read:
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0012| "7-9-29. EXEMPTION--GROSS RECEIPTS TAX--CERTAIN
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0013| ORGANIZATIONS.--
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0014| A. Exempted from the gross receipts tax are the
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0015| receipts of organizations that demonstrate to the department
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0016| that they have been granted exemption from the federal income
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0017| tax by the United States commissioner of internal revenue as
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0018| organizations described in Section 501(c)(3) of the United
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0019| States Internal Revenue Code of [1954] 1986, as amended [or
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renumbered], other than organizations that are hospitals
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0021| licensed by the department of health.
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0022| B. Exempted from the gross receipts tax are the
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0023| receipts from carrying on chamber of commerce, visitor bureau
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0024| and convention bureau functions of organizations that
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0025| demonstrate to the department that they have been granted
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0001| exemption from the federal income tax by the United States
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0002| commissioner of internal revenue as organizations described in
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0003| Section 501(c)(6) of the United States Internal Revenue Code of
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0004| [1954] 1986, as amended [or renumbered].
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0005| C. This section does not apply to receipts derived
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0006| from an unrelated trade or business as defined in Section 513 of
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0007| the United States Internal Revenue Code of [1954] 1986, as
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0008| amended [or renumbered]."
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0009| Section 3. Section 7-9-60 NMSA 1978 (being Laws 1970,
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0010| Chapter 12, Section 4, as amended) is amended to read:
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0011| "7-9-60. DEDUCTION--GROSS RECEIPTS TAX--GOVERNMENTAL GROSS
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0012| RECEIPTS TAX--SALES TO CERTAIN ORGANIZATIONS.--
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0013| A. Except as provided otherwise in Subsection B of
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0014| this section, receipts from selling tangible personal property
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0015| to organizations that have been granted exemption from the
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0016| federal income tax by the United States commissioner of internal
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0017| revenue as organizations described in Section 501(c)(3) of the
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0018| United States Internal Revenue Code of 1986, as amended [or
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renumbered], other than organizations that are hospitals
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0020| licensed by the department of health, may be deducted from
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0021| gross receipts or from governmental gross receipts if the sale
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0022| is made to an organization that delivers a nontaxable
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0023| transaction certificate to the seller. The buyer delivering the
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0024| nontaxable transaction certificate shall employ the tangible
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0025| personal property in the conduct of functions described in
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0001| Section 501(c)(3) and shall not employ the tangible personal
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0002| property in the conduct of an unrelated trade or business as
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0003| defined in Section 513 of the United States Internal Revenue
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0004| Code of 1986, as amended [or renumbered].
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0005| B. The deduction provided by this section does not
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0006| apply to receipts from selling tangible personal property that
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0007| will become an ingredient or component part of a construction
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0008| project or from selling metalliferous mineral ore."
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0009| Section 4. REPEAL.--Section 7-9-73.1 NMSA 1978 (being Laws
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0010| 1991, Chapter 8, Section 3, as amended) is repealed.
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0011| Section 5. 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| FORTY-SECOND LEGISLATURE
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0016| SECOND SESSION, 1996
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0017|
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0018|
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0019| JANUARY 29, 1996
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0020|
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0021| Mr. President:
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0022|
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0023| Your COMMITTEES' COMMITTEE, to whom has been referred
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0024|
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0025| SENATE BILL 374
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0001|
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0002| has had it under consideration and finds same to be GERMANE, PURSUANT
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0003| TO CONSTITUIONAL PROVISIONS, and thence referred to the WAYS AND
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0004| MEANS COMMITTEE.
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0005|
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0006| Respectfully submitted,
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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| __________________________________
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0012| SENATOR MANNY M. ARAGON, 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|
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0024| S0374CC1
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