0001|                        SENATE BILL 501
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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|                 FOR THE HEALTH CARE TASK FORCE
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0010|     
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0011|                             AN ACT
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0012|     RELATING TO TAXATION; AMENDING A SECTION OF THE GROSS RECEIPTS
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0013|     AND COMPENSATING TAX ACT RELATED TO 501(c)(3) HOSPITALS LICENSED
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0014|     BY THE DEPARTMENT OF HEALTH; REPEALING A SECTION OF THE NMSA
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0015|     1978.
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0016|     
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0017|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018|       Section 1.  Section 7-9-29 NMSA 1978 (being Laws 1970,
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0019|     Chapter 12, Section 3, as amended) is amended to read:
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0020|       "7-9-29.  EXEMPTION--GROSS RECEIPTS TAX--CERTAIN
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0021|     ORGANIZATIONS.--
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0022|            A.  Exempted from the gross receipts tax are the
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0023|     receipts of organizations that demonstrate to the department
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0024|     that they have been granted exemption from the federal income
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0025|     tax by the United States commissioner of internal revenue as
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0001|     organizations described in Section 501(c)(3) of the United
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0002|     States Internal Revenue Code of 1954, as amended or renumbered,
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0003|     <u>other than receipts of hospitals licensed by the department of
</u>    |
<u></u>0004| <u>    health that demonstrate to the department that they have been
</u>    |
<u></u>0005| <u>    granted exemption from the federal income tax by the United
</u>    |
<u></u>0006| <u>    States commissioner of internal revenue as organizations
</u>    |
<u></u>0007| <u>    described in Section 501(c)(3) of the United States Internal
</u>    |
<u></u>0008| <u>    Revenue Code of 1954, as amended or renumbered</u>.
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0009|            B.  Exempted from the gross receipts tax are the
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0010|     receipts from carrying on chamber of commerce, visitor bureau
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0011|     and convention bureau functions of organizations that
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0012|     demonstrate to the department that they have been granted
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0013|     exemption from the federal income tax by the United States
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0014|     commissioner of internal revenue as organizations described in
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0015|     Section 501(c)(6) of the United States Internal Revenue Code of
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0016|     1954, as amended or renumbered.
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0017|            C.  This section does not apply to receipts derived
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0018|     from an unrelated trade or business as defined in Section 513 of
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0019|     the United States Internal Revenue Code of 1954, as amended or
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0020|     renumbered."
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0021|       Section 2.  REPEAL.--Section 7-9-73.1 NMSA 1978 (being laws
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0022|     1995, Chapter 50, Section 5) is repealed.   
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0023|                                - 2 -                
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0024|   
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0025|                    FORTY-SECOND LEGISLATURE
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0001|                      SECOND SESSION, 1996
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0002|   
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0003|   
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0004|                                              JANUARY 30, 1996
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0005|   
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0006|   Mr. President:
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0007|   
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0008|     Your COMMITTEES' COMMITTEE, to whom has been referred
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0009|   
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0010|                           SENATE BILL 501
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0011|   
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0012|   has had it under consideration and finds same to be GERMANE, PURSUANT
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0013|   TO CONSTITUTIONAL PROVISIONS, and thence referred to the WAYS AND
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0014|   MEANS COMMITTEE.
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0015|   
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0016|                              Respectfully submitted,
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0017|   
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0018|   
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0019|   
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0020|   
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0021|                              __________________________________
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0022|                              SENATOR MANNY M. ARAGON, Chairman 
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0023|   
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0024|   
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0025|   
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0001|   Adopted_______________________ Not Adopted_______________________
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0002|             (Chief Clerk)                        (Chief Clerk)
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0003|   
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0004|   
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0005|                     Date ________________________
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0006|   
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0007|   
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0008|   
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0009|   S0501CC1
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