0001| SENATE CORPORATIONS COMMITTEE SUBSTITUTE FOR | 0002| SENATE BILL 1249 | 0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; | 0013| AMENDING THE LEASED VEHICLE GROSS RECEIPTS TAX ACT TO EXEMPT | 0014| FROM THE LEASED VEHICLE SURCHARGE THE LEASING OF CERTAIN RENTAL | 0015| VEHICLES. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. Section 7-14A-2 NMSA 1978 (being Laws 1991, | 0019| Chapter 197, Section 6, as amended) is amended to read: | 0020| "7-14A-2. DEFINITIONS.--As used in the Leased Vehicle | 0021| Gross Receipts Tax Act: | 0022| A. "department" means the taxation and revenue | 0023| department, the secretary of taxation and revenue or any | 0024| employee of the department exercising authority lawfully | 0025| delegated to that employee by the secretary; | 0001| B. "engaging in business" means carrying on or | 0002| causing to be carried on the leasing of vehicles with the | 0003| purpose of direct or indirect benefit; | 0004| C. "gross receipts" means the total amount of money | 0005| or the value of other consideration received from leasing | 0006| vehicles used in New Mexico, but excludes cash discounts | 0007| allowed and taken, leased vehicle gross receipts tax payable on | 0008| transactions for the reporting period, gross receipts tax | 0009| payable pursuant to the Gross Receipts and Compensating Tax Act | 0010| on transactions for the reporting period and taxes imposed | 0011| pursuant to the provisions of any local option gross receipts | 0012| tax, as that term is defined in the Tax Administration Act, | 0013| that is payable on transactions for the reporting period and | 0014| any type of time-price differential. Also excluded from "gross | 0015| receipts" are any gross receipts or sales taxes imposed by an | 0016| Indian nation, tribe or pueblo, provided that the tax is | 0017| approved, if approval is required by federal law or regulation, | 0018| by the secretary of the interior of the United States, and | 0019| provided further that the gross receipts or sales tax imposed | 0020| by the Indian nation, tribe or pueblo provides a reciprocal | 0021| exclusion for gross receipts, sales or gross receipts-based | 0022| excise taxes imposed by the state or its political | 0023| subdivisions. In an exchange in which the money or other | 0024| consideration received does not represent the value of the | 0025| lease of the vehicle, "gross receipts" means the reasonable | 0001| value of the lease of the vehicle. When the leasing of | 0002| vehicles is made under a leasing contract, the seller or lessor | 0003| may elect to treat all receipts under those contracts as gross | 0004| receipts as and when the payments are actually received. "Gross | 0005| receipts" also includes amounts paid by members of any cooperative | 0006| association or similar organization for the lease of vehicles by | 0007| that organization; | 0008| D. "hardship rental" means the lease of a vehicle by | 0009| the owner of a damaged or stolen vehicle to replace temporarily | 0010| that damaged or stolen vehicle; | 0011| [D.] E. "leasing" means any arrangement whereby, for a | 0012| consideration, a vehicle without a driver furnished by the lessor | 0013| or owner is employed for or by any person other than the owner of | 0014| the vehicle for a period of not more than six months; | 0015| [E.] F. "person" means any individual, estate, trust, | 0016| receiver, cooperative association, club, corporation, company, | 0017| firm, partnership, joint venture, syndicate or other entity; and | 0018| [F.] G. "vehicle" means a passenger automobile | 0019| designed to accommodate six or fewer adult human beings that is | 0020| part of a fleet of five or more passenger automobiles owned by the | 0021| same person." | 0022| Section 2. Section 7-14A-3.1 NMSA 1978 (being Laws 1993, | 0023| Chapter 359, Section 1) is amended to read: | 0024| "7-14A-3.1. IMPOSITION AND RATE--LEASED VEHICLE SURCHARGE.- | 0025| - | 0001| A. Except as provided in Subsection B of this section, | 0002| there is imposed a surcharge on the leasing of a vehicle to | 0003| another person by a person engaging in business in New Mexico if | 0004| the lease is subject to the leased vehicle gross receipts tax. | 0005| The amount of this surcharge is two dollars ($2.00) for each day | 0006| each vehicle is leased by the person. The surcharge may be | 0007| referred to as the "leased vehicle surcharge". | 0008| B. No surcharge shall be imposed on the lease of a | 0009| vehicle if the person leasing the vehicle can present evidence | 0010| satisfactory to the person leasing the vehicle that it is a | 0011| hardship rental. Satisfactory evidence shall be determined by | 0012| department regulation and may include the insurance claim number | 0013| or other insurance information, an accident report or other report | 0014| or document from a law enforcement agency or a work order or other | 0015| document from a car repair shop." | 0016| Section 3. EFFECTIVE DATE.--The effective date of the | 0017| provisions of this act is July 1, 1997. | 0018|  |