FORTY-THIRD LEGISLATURE
                          SECOND SESSION
  
  
                                                   February 16, 1998
  
  
  HOUSE FLOOR AMENDMENT number 1 to HOUSE BILL 35
  
  Amendment sponsored by Representative Judy Vanderstar Russell
  
  
      1.  On pages 7 through 9, strike Section 4 in its entirety and
  insert in lieu thereof:
  
      "Section 4.  Section 7-9-57 NMSA 1978 (being Laws 1969, Chapter
  144, Section 47, as amended) is amended to read:
  
      "7-9-57.  DEDUCTION--GROSS RECEIPTS TAX--SALE OF CERTAIN SERVICES
  TO AN OUT-OF-STATE BUYER.--
  
          A.  Receipts from performing a service may be deducted from
  gross receipts if the sale of the service is made to a buyer who
  delivers to the seller either <s>[a]</s> <u>an appropriate</u> nontaxable
  transaction certificate or other evidence acceptable to the secretary
  <s>[that the transaction does not contravene the conditions set out in
  Subsection C of this section.
  
          B.  The buyer delivering the nontaxable transaction
  certificate or other evidence acceptable to the secretary shall not
  contravene the conditions set out in Subsection C of this section.
  
          C.  Receipts from performance of a service shall not be sub-
  
  ject to the deduction provided in this section if]</s> <u>unless</u> the buyer
  of the service or any of the buyer's employees or agents <s>[(1)]</s> makes
  initial use of the product of the service in New Mexico or <s>[(2)]</s> 
  takes delivery of the product of the service in New Mexico.
  
          <s>[D.]</s> <u>B.</u>  Receipts from performing a service <s>[which]</s>
  <u>that</u> initially qualified for the deduction provided in this section
  but <s>[which]</s> <u>that</u> no longer meets the criteria set forth in
  Subsection <s>[C]</s> <u>A</u> of this section shall be deductible for the
  period prior to the disqualification."".
  
  
  
  
  
  
  
  
                                        ___________________________
                                        Judy Vanderstar Russell
  
  
  
  Adopted ___________________   Not Adopted ___________________________
           (Chief Clerk)                       (Chief Clerk)
  
  
                  Date ________________