State of New Mexico
                      House of Representatives
  
                      FORTY-THIRD LEGISLATURE
                        FIRST SESSION, 1997
  
  
                                                   March 12, 1997
  
  
  Mr. Speaker:
  
       Your TAXATION AND REVENUE COMMITTEE, to whom has
  been referred
  
                       HOUSE BILL 1082
                               
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  On page 1, line 11, after "RECEIPTS" insert "AND FROM
  INTERSTATE TELECOMMUNICATIONS GROSS RECEIPTS".
  
       2.  On page 1, line 18, after "Receipts" strike the remainder
  of the line, strike all of lines 19 through 21 and insert in lieu
  thereof:  
  
  "during the period July 1, 1997 through June 30, 1999 from providing
  leased telephone lines, telecommunications services, internet access
  services or computer programming that will be used by other persons
  in providing internet access and related services to the final user
  may be deducted from gross receipts if the sale is made to a person
  who is subject to the interstate telecommunications gross receipts
  tax or to the gross receipts tax."
  
       Section 2.  Section 7-9C-7 NMSA 1978 (being Laws 1992, Chapter
  50, Section 7 and also Laws 1992, Chapter 67, Section 7) is amended
  to read:
  
       "7-9C-7.  DEDUCTION--SALE OF A SERVICE FOR RESALE.--
  
            A.  Receipts from providing an interstate
  telecommunications service in this state that will be used by other
  persons in providing telephone or telegraph services to the final
  user may be deducted from interstate telecommunications gross
  receipts if the sale is made to a person who is subject to the
  interstate telecommunications gross receipts tax or to the gross
  receipts tax or the compensating tax.
  
            
  
  
  
       B.  Receipts during the period July 1, 1997, through June 30,
  1999 from providing leased telephone lines, telecommunications
  services, internet access services or computer programming that will
  be used by other persons in providing internet access and related
  services to the final user may be deducted from interstate
  telecommunications gross receipts if the sale is made to a person
  who is subject to the interstate telecommunications gross receipts
  tax, to the gross receipts tax or to the compensating tax."
  
       Section 3.  EFFECTIVE DATE.--The effective date of the
  provisions of this act is July 1, 1997.".
  
                                Respectfully submitted,
  
  
  
                                                                                               
                                                              Jerry W. Sandel, Chairman
  
  
  Adopted                       Not Adopted                       
            (Chief Clerk)                       (Chief Clerk)
  
                         Date             
  
  The roll call vote was 10  For 0  Against
  Yes:      10
            Excused:  Gubbels, Lovejoy, Parsons
            Absent:   None
  
  
  .117812.2
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