0001|                            SENATE BILL 41
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                          ROMAN M. MAES III
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0005|     
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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|                                AN ACT
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0011|     RELATING TO TAXATION; PROVIDING DEDUCTIONS FROM GROSS RECEIPTS
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0012|     FOR SALES OF CONSTRUCTION MATERIALS, CONSTRUCTION SERVICES,
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0013|     EQUIPMENT AND INSTALLATION SERVICES FOR USE IN NEW OR EXPANDED
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0014|     MANUFACTURING OPERATIONS.
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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.  A new section of the Gross Receipts and
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0018|     Compensating Tax Act is enacted to read:
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0019|           "[<u>NEW MATERIAL</u>]  DEDUCTION--GROSS RECEIPTS TAX--SALE OF
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0020|     CERTAIN SERVICES, MATERIALS AND EQUIPMENT FOR MANUFACTURING
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0021|     OPERATIONS--DEFINITIONS.--
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0022|               A.  Receipts from the sale of construction services
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0023|     to expand existing or construct new facilities for a
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0024|     manufacturing operation located in New Mexico may be deducted
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0025|     from gross receipts if the construction service is sold to a
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0001|     person who delivers a nontaxable transaction certificate to the
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0002|     person performing the construction service.
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0003|               B.  Receipts from the sale of construction materials
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0004|     purchased for use to expand existing or construct new
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0005|     facilities for a manufacturing operation located in New Mexico
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0006|     may be deducted from gross receipts if the materials are sold
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0007|     to a person who delivers a nontaxable transaction certificate
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0008|     to the person selling the materials.
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0009|               C.  Receipts from the sale of equipment purchased
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0010|     for use in a new or expanded manufacturing operation located in 
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0011|     New Mexico may be deducted from gross receipts if the equipment
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0012|     is sold to a person who delivers a nontaxable transaction
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0013|     certificate to the person selling the equipment.
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0014|               D.  Receipts from the sale of installation services
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0015|     necessary to install equipment in a new or expanded
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0016|     manufacturing operation located in New Mexico may be deducted
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0017|     from gross receipts if the installation service is sold to a
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0018|     person who delivers a nontaxable transaction certificate to the
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0019|     person performing the installation service.
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0020|               E.  As used in this section:
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0021|                    (1)  "construction service" means a service
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0022|     necessary to construct or expand a manufacturing operation;
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0023|                    (2)  "equipment" means equipment necessary to
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0024|     conduct a new or expanded manufacturing operation;
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0025|                    (3)  "installation service" means a service
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0001|     required to install and make operational equipment necessary to
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0002|     conduct a manufacturing operation; and
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0003|                    (4)  "manufacturing operation" means a plant
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0004|     employing personnel to perform production or assembly tasks to
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0005|     produce goods.
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0006|               F.  Election by a taxpayer to deliver the nontaxable
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0007|     transaction certificate necessary to support a deduction from
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0008|     gross receipts pursuant to the provisions of this section shall
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0009|     preclude availability to that taxpayer of the investment credit
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0010|     that would be available on the same equipment pursuant to the
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0011|     provisions of the Investment Credit Act."
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0012|          Section 2.  EFFECTIVE DATE.--The effective date of the
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0013|     provisions of this act is July 1, 1997.
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0014|                                - 3-   
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0015|   
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0016|                      FORTY-THIRD LEGISLATURE
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0017|                        FIRST SESSION, 1997              SB 41/a
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0018|   
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0019|   
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0020|                                                January 30, 1997
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0021|   
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0022|   Mr. President:
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0023|   
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0024|       Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
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0025|   whom has been referred
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0001|   
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0002|                           SENATE BILL 41
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0003|   
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0004|   has had it under consideration and reports same with
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0005|   recommendation that it DO PASS, amended as follows:
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0006|   
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0007|       1.  On page 3, line 5, after "goods" insert "or enhance the
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0008|   value of products".,
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0009|   
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0010|   and thence referred to the WAYS & MEANS COMMITTEE. 
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0011|                
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0012|                                Respectfully submitted,
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0013|   
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0014|   
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0015|   
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0016|                                
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0017|   __________________________________
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0018|                                Roman M. Maes, III, Chairman 
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0019|   
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0020|   
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0021|   
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0022|   Adopted_______________________   Not
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0023|   Adopted_______________________
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0024|             (Chief Clerk)                          (Chief Clerk)
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0025|   
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0001|   
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0002|                     Date ________________________
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0003|   
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0004|   
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0005|   The roll call vote was <u> 8 </u> For <u> 0 </u> Against
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0006|           Yes:    8
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0007|           No:     None
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0008|                Excused:     Robinson, Wilson
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0009|           Absent: None
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0010|   
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0011|   
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0012|   
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0013|   S0041CT1                                            .115433.2  
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0014|   
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0015|                      FORTY-THIRD LEGISLATURE
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0016|                        FIRST SESSION, 1997              SB 41/a
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0017|   
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0018|   
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0019|                                               February 12, 1997
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0020|   
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0021|   Mr. President:
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0022|   
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0023|       Your WAYS AND MEANS COMMITTEE, to whom has been
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0024|   referred
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0025|   
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0001|                     SENATE BILL 41, as amended
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0002|   
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0003|   has had it under consideration and reports same with
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0004|   recommendation that it DO PASS, amended as follows:
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0005|   
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0006|       1.  Strike Senate Corporations and Transportation Committee
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0007|   Amendment 1.
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0008|   
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0009|       2.  On page 3, line 5, before the period insert ", including
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0010|   meat packing plants, agricultural produce processing plants,
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0011|   chemical processing plants, oil refineries and natural gas
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0012|   processing plants, but excluding power plants and restaurants and
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0013|   similar establishments whose primary business is selling food at
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0014|   retail".
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0015|   
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0016|       3.  On page 3, between lines 11 and 12, insert the following
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0017|   new section:
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0018|   
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0019|       "Section 2.  DELAYED REPEAL.--Section 1 of this act is
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0020|   repealed effective July 1, 2002.".
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0021|   
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0022|       4.  Renumber the succeeding section accordingly.,
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0023|   
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0024|   and further recommends that it now be referred to the FINANCE
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0025|   COMMITTEE. 
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0001|                
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0002|                                Respectfully submitted,
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0003|   
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0004|   
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0005|   
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0006|                                
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0007|   __________________________________
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0008|                                Carlos R. Cisneros, Chairman 
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0009|   
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0010|   
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0011|   
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0012|   
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0013|   
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0014|   
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0015|   
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0016|   
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0017|   
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0018|   Adopted_______________________   Not
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0019|   Adopted_______________________
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0020|             (Chief Clerk)                          (Chief Clerk)
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0021|   
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0022|   
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0023|                     Date ________________________
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0024|   
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0025|   
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0001|   The roll call vote was <u> 6 </u> For <u> 0 </u> Against
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0002|           Yes:    6
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0003|           No:     0
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0004|                Excused:     Duran, McSorley, Nava
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0005|           Absent: None
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0006|   
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0007|   
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0008|   
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0009|   S0041SW1                                            .115727.1  
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0010|   
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0011|                      FORTY-THIRD LEGISLATURE
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0012|                        FIRST SESSION, 1997
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0013|   
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0014|   
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0015|                                               February 27, 1997
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0016|   
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0017|   Mr. President:
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0018|   
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0019|       Your FINANCE COMMITTEE, to whom has been referred
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0020|   
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0021|                     SENATE BILL 41, as amended
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0022|   
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0023|   has had it under consideration and reports same with
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0024|   recommendation that it DO PASS.
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0025|   
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0001|                                Respectfully submitted,
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0002|   
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0003|   
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0004|   
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0005|                                
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0006|   __________________________________
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0007|                                Ben D. Altamirano, Chairman 
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0008|   
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0009|   
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0010|   
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0011|   Adopted_______________________   Not
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0012|   Adopted_______________________
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0013|             (Chief Clerk)                          (Chief Clerk)
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0014|   
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0015|   
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0016|   
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0017|                     Date ________________________
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0018|   
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0019|   
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0020|   The roll call vote was <u> 8 </u> For <u> 0 </u> Against
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0021|           Yes:    8
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0022|           No:     None
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0023|                Excused:     Aragon, Ingle, Smith
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0024|           Absent: None
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0025|   
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0001|   
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0002|   S0041FC1
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0003|                        FORTY-THIRD LEGISLATURE
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0004|                        FIRST SESSION, 1997
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0005|   
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0006|   
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0007|   
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0008|                                         October 23, 1997
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0009|   
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0010|   
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0011|   SENATE FLOOR AMENDMENT number <u>      </u> to SENATE BILL 41, as
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0012|   amended
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0013|   
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0014|   AMENDMENT sponsored by SENATOR ARAGON
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0015|   
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0016|       1.  On page 1, line 24, after the word "New Mexico" insert
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0017|   "counties, with over ten percent (10%) unemployment,".
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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|                                    <u>                              
</u>    |
<u></u>0023| <u>  </u>
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0024|                                    Senator Manny M. Aragon
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0025|   
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0001|   
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0002|   
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0003|   Adopted <u>                       </u>       Not Adopted <u>               
</u>    |
<u></u>0004| <u>         </u>
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0005|            (Chief Clerk)                       (Chief Clerk)
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0006|   
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0007|   
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0008|                                Date <u>                           
</u>    |
<u></u>0009| <u>  </u>
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0010|   
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0011|   
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0012|   
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0013|   S0041FS1
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