Title: Tax Law Amendments
NOTE: THIS BILL WAS SIGNED AFTER A LINE ITEM VETO(S).
Title: Tax Law Amendments
Vote to pass a bill that amends the state tax code, including, but not limited to, increasing the gross receipts tax and compensating tax, reducing state distribution to municipalities to offset revenue loss for gross receipts tax deductions for the sale of food at retail food stores, and expanding income tax liability and income tax deductions.
-Increases the tax on gross receipts of individuals engaging in business in New Mexico from 5 to 5.125 percent (Sec. 9). -Repeals the gross receipts tax deduction for the receipts of the sale of food at retail food stores, and establishes a retail food tax credit equaled to 5.125 percent of gross receipts that may be claimed by a retail food store (Secs. 11 & 13). -Repeals the scheduled distribution of revenue to municipalities for revenue loss as a result of the gross receipts tax deduction for the receipts of the sale of food at retail food stores ("hold harmless distribution"), and establishes a new schedule of distribution equal to 1.225 percent of food sales for which the retail food tax credit is claimed for fiscal year 2010-2011 and 1.05 percent for fiscal year 2011-2012 and each fiscal year thereafter (Sec. 5). -Increases the compensating tax from 5 to 5.125 percent, which is imposed on tangible property that was (Sec. 10):
Title: Tax Law Amendments
Vote to pass a bill that amends the state tax code, including, but not limited to, increasing the gross receipts tax and compensating tax, reducing state distribution to municipalities to offset revenue loss for gross receipts tax deductions for the sale of food at retail food stores, and expanding income tax liability and income tax deductions.
-Increases the tax on gross receipts of individuals engaging in business in New Mexico from 5 to 5.125 percent (Sec. 9). -Repeals the gross receipts tax deduction for the receipts of the sale of food at retail food stores, and establishes a retail food tax credit equaled to 5.125 percent of gross receipts that may be claimed by a retail food store (Secs. 11 & 13). -Repeals the scheduled distribution of revenue to municipalities for revenue loss as a result of the gross receipts tax deduction for the receipts of the sale of food at retail food stores ("hold harmless distribution"), and establishes a new schedule of distribution equal to 1.225 percent of food sales for which the retail food tax credit is claimed for fiscal year 2010-2011 and 1.05 percent for fiscal year 2011-2012 and each fiscal year thereafter (Sec. 5). -Increases the compensating tax from 5 to 5.125 percent, which is imposed on tangible property that was (Sec. 10):
Title: Tax Law Amendments
NOTE: THIS IS A SUBSTITUTE BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. THE DEGREE TO WHICH THE SUBSTITUTE BILL TEXT DIFFERS FROM THE PREVIOUS VERSION OF THE TEXT CAN VARY GREATLY.