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SB 029: GROSS RECEIPTS DEDUCTIONS ITEMIZATION

An Act Relating To Taxation; Requiring Certain Gross Receipts And Compensating Tax Deductions And Exemptions To Be Separately Stated And Itemized; Requiring The Secretary Of Taxation And Revenue To Promulgate Rules For Separately Stating And Itemizing Gross Receipts And Compensating Tax Deductions And Exemptions; Providing A Sunset For Certain Sections Of The Gross Receipts And Compensating Tax Act; Making An Appropriation.

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MILD SB 029
GROSS RECEIPTS DEDUCTIONS ITEMIZATION

Legislative URL:
SB 029 on nmlegis.gov
Emergency Clause:
No
Germane:
Yes
Location:
SFC
Action:
SPREF [2] SCC/SCORC/SFC-SCC-germane-SCORC [7] DNP-CS/DP-SFC API.
Hearing:
Friday, February 14, 2014 - 1:30 p.m. or ½ hr. after session - Room 322
Issue(s):

Companion Bills

Bills:
ITEMIZE GROSS RECEIPT DEDUCTIONS & EXEMPTIONS

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
SCC Committee Report
SCORC Committee Report
SCORC Committee Substitute
Fiscal Impact Report
Summary

This measure adds sunset dates to a number of gross receipts tax (GRT) and compensating tax (CT) deductions, including the following:

  • The GRT deduction for the receipts from selling wind generation equipment or solar generation equipment to a government for the purpose of installing a wind or solar electric generation facility will sunset on July 1, 2025.
  • The CT deduction for the value of a biomass boiler, gasifier, furnace, turbine-generator, storage facility, feedstock processing or drying equipment, feedstock trailer or interconnection transformer will sunset on July 1, 2027.
  • The CT deduction for the value of materials used for processing into biopower, biofuels or biobased products will sunset on July 1, 2027.
  • The GRT and CT deductions for receipts from selling equipment to the New Mexico Renewable Energy Transmission Authority or an agent or lessee of the Authority (RETA) that is installed as part of an electric transmission facility or an interconnected storage facility acquired by RETA pursuant to the New Mexico Renewable Energy Transmission Authority Act (RETA Act) will sunset on July 1, 2017.
  • The GRT deduction for providing services to the RETA for the planning, installation, repair, maintenance or operation of an electric transmission facility or an interconnected storage facility acquired by the authority pursuant to the RETA Act will sunset on July 1, 2027.
  • The GRT deduction for the transmission of electricity where voltage source conversion technology is employed to provide such services and from ancillary services will sunset on July 1, 2027.
  • The GRT deduction for receipts from operating a market or exchange for the sale or trading of electricity, rights to electricity and derivative products and ancillary services will sunset on July 1, 2027.
  • The GRT deduction for receipts from the sale and installation of solar energy systems will sunset on July 1, 2027.
  • The advanced energy deduction from the GRT will sunset on July 1, 2027.

 

The bill might be considered positive with respect to the deductions that do not provide a public benefit because the deduction will not be available in perpetuity. Conversely, the bill might be considered negative for those that do not provide a public benefit for the same reason. From a practical perspective, the sunset dates set forth in the bill are still 10 or more years away and thus may not provide any immediate benefit or drawback. Additionally, that means there is ample time for the sunset dates to change or be eliminated.

 

Date of Summary:  1/24/2014

 

The SCORC Committee Substitute removes the sunset dates.

 

Date of Revision:  2/11/2104

Outcome:

SB 029 died in the Senate Finance Committee.

 

Updated 7/31/14