0001|         HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR
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0002|                            HOUSE BILL 20
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0003|     43rd legislature - STATE OF NEW MEXICO - first special session, 1998
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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|     
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0009|                                   
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0010|     
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0011|                                AN ACT
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0012|     EXPANDING THE GROSS RECEIPTS TAX DEDUCTION FOR SALES TO
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0013|     CERTAIN ORGANIZATIONS OR FACILITIES OF CERTAIN AEROSPACE
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0014|     SERVICES RELATED TO THE SPACEPORT; DECLARING AN EMERGENCY.
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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.  Section 7-9-54.1 NMSA 1978 (being Laws 1992,
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0018|     Chapter 40, Section 1, as amended) is amended to read:
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0019|          "7-9-54.1.  DEDUCTION--GROSS RECEIPTS FROM SALE OF
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0020|     AEROSPACE SERVICES TO CERTAIN ORGANIZATIONS.--
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0021|               A.  As used in this section:
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0022|                    (1)  "aerospace services" means research and
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0023|     development services sold to or <u>sold</u> for resale to an
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0024|     organization for resale by the organization to the United
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0025|     States <s>[air force]</s> <u>department of defense</u>; and
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<center>- 1 -</center>0001|                    (2)  "organization" means an organization
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0002|     described in Subsection A of Section 7-9-29 NMSA 1978 other
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0003|     than a prime contractor operating facilities in New Mexico
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0004|     designated as a national laboratory by act of congress.
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0005|               B.  Receipts from performing or selling, on or
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0006|     after October 1, 1995, an aerospace service for resale may be
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0007|     deducted from gross receipts if the sale is made to a buyer
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0008|     who delivers a nontaxable transaction certificate.  The buyer
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0009|     delivering the nontaxable transaction certificate shall
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0010|     separately state the value of the aerospace service purchased
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0011|     in the buyer's charge for the aerospace service on its
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0012|     subsequent sale to an organization or, if the buyer is an
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0013|     organization, on the organization's subsequent sale to the
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0014|     United States, and the subsequent sale shall be in the
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0015|     ordinary course of business of selling aerospace services to
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0016|     an organization or to the United States.
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0017|               <u>C.  Receipts from performing research and
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<u></u>0018| <u>    development services for or selling research and development
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<u></u>0019| <u>    services to or for resale to a major range and test facility
</u>    |
<u></u>0020| <u>    base designated by an act of congress may be deducted from
</u>    |
<u></u>0021| <u>    gross receipts.</u>
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0022|               <s>[C.]</s> <u>D.</u>  A percentage of the receipts from
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0023|     selling aerospace services to or for resale to an organization
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0024|     may be deducted from gross receipts in accordance with the
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0025|     following table:
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<center>- 2 -</center>0001|                                                      Deductible
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0002|          Receipts During the Period                    Percentage
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0003|          October 1, 1995 through September 30, 1996         10%  
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0004|          October 1, 1996 through September 30, 1997         25%  
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0005|          October 1, 1997 through September 30, 1999         50%  
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0006|          October 1, 1999 and thereafter                    100%."
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0007|          Section 2.  EFFECTIVE DATE.--The effective date of the
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0008|     provisions of this act is July 1, 1998; provided that if this
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0009|     bill is enacted into law without an emergency clause, the
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0010|     effective date is January 1, 1999.
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0011|          Section 3.  EMERGENCY.--It is necessary for the public
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0012|     peace, health and safety that this act take effect immediately.
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0013|                               
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