New Mexico HB 579: TAX REFORM

Bill Text

HB0579 

HOUSE BILL 579

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Jason C. Harper and Carlos R. Cisneros

AN ACT

RELATING TO TAXATION; CREATING A DEPENDENT DEDUCTION PURSUANT 
TO THE INCOME TAX ACT; AMENDING THE UNIFORM DIVISION OF INCOME 
FOR TAX PURPOSES ACT TO DETERMINE IN-STATE SALES OF INTANGIBLES 
AND SERVICES BASED ON MARKET SOURCING RATHER THAN COST OF 
PERFORMANCE; PROVIDING FOR TAXATION OF CERTAIN INTERNET SELLERS 
AND MARKETPLACE PROVIDERS PURSUANT TO THE GROSS RECEIPTS AND 
COMPENSATING TAX ACT; ADDING AND AMENDING DEFINITIONS PURSUANT 
TO THAT ACT; AMENDING SOURCING RULES FROM THE PLACE OF BUSINESS 
OF THE SELLER TO DESTINATION-BASED SOURCING; INCREASING THE 
COMPENSATING TAX ON SERVICES; PROHIBITING CLASS ACTION SUITS 
AGAINST A MARKETPLACE PROVIDER FOR TAX OVERPAYMENTS; AMENDING A 
GROSS RECEIPTS TAX EXEMPTION FOR NONPROFITS AND A DEDUCTION FOR 
MANUFACTURERS; CREATING A DEDUCTION FOR MARKETPLACE SELLERS; 
AMENDING APPORTIONMENT OF BUSINESS INCOME PROVISIONS; IMPOSING 
A MUNICIPAL COMPENSATING TAX AND A COUNTY COMPENSATING TAX; 
AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; 
MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

 SECTION 1. Section 7-1-2 NMSA 1978 (being Laws 1965, 
Chapter 248, Section 2, as amended) is amended to read:

 "7-1-2. APPLICABILITY.--The Tax Administration Act 
applies to and governs:

 A. the administration and enforcement of the 
following taxes or tax acts as they now exist or may hereafter 
be amended:

 (1) Income Tax Act;

 (2) Withholding Tax Act;

 (3) [Venture Capital Investment] Oil and Gas 
Proceeds and Pass-Through Entity Withholding Tax Act;

 (4) Gross Receipts and Compensating Tax Act, 
Interstate Telecommunications Gross Receipts Tax Act and [any 
state gross receipts tax] Leased Vehicle Gross Receipts Tax 
Act;

 (5) Liquor Excise Tax Act;

 (6) Local Liquor Excise Tax Act;

 (7) any municipal local option gross receipts 
tax or municipal compensating tax;

 (8) any county local option gross receipts tax 
or county compensating tax;

 (9) Special Fuels Supplier Tax Act;

 (10) Gasoline Tax Act;

 (11) petroleum products loading fee, which fee 
shall be considered a tax for the purpose of the Tax 
Administration Act;

 (12) Alternative Fuel Tax Act;

 (13) Cigarette Tax Act;

 (14) Estate Tax Act;

 (15) Railroad Car Company Tax Act;

 (16) Investment Credit Act, rural job tax 
credit, Laboratory Partnership with Small Business Tax Credit 
Act, Technology Jobs and Research and Development Tax Credit 
Act, Film Production Tax Credit Act, Affordable Housing Tax 
Credit Act and high-wage jobs tax credit;

 (17) Corporate Income and Franchise Tax Act;

 (18) Uniform Division of Income for Tax 
Purposes Act;

 (19) Multistate Tax Compact; 

 (20) Tobacco Products Tax Act; and

 (21) the telecommunications relay service 
surcharge imposed by Section 63-9F-11 NMSA 1978, which 
surcharge shall be considered a tax for the purposes of the Tax 
Administration Act;

 B. the administration and enforcement of the 
following taxes, surtaxes, advanced payments or tax acts as 
they now exist or may hereafter be amended:

 (1) Resources Excise Tax Act;

 (2) Severance Tax Act;

 (3) any severance surtax;

 (4) Oil and Gas Severance Tax Act;

 (5) Oil and Gas Conservation Tax Act;

 (6) Oil and Gas Emergency School Tax Act;

 (7) Oil and Gas Ad Valorem Production Tax Act;

 (8) Natural Gas Processors Tax Act;

 (9) Oil and Gas Production Equipment Ad 
Valorem Tax Act;

 (10) Copper Production Ad Valorem Tax Act; 

 (11) any advance payment required to be made 
by any act specified in this subsection, which advance payment 
shall be considered a tax for the purposes of the Tax 
Administration Act;

 (12) Enhanced Oil Recovery Act;

 (13) Natural Gas and Crude Oil Production 
Incentive Act; and

 (14) intergovernmental production tax credit 
and intergovernmental production equipment tax credit;

 C. the administration and enforcement of the 
following taxes, surcharges, fees or acts as they now exist or 
may hereafter be amended:

 (1) Weight Distance Tax Act;

 (2) the workers' compensation fee authorized 
by Section 52-5-19 NMSA 1978, which fee shall be considered a 
tax for purposes of the Tax Administration Act;

 (3) Uniform Unclaimed Property Act (1995);

 (4) 911 emergency surcharge and the network 
and database surcharge, which surcharges shall be considered 
taxes for purposes of the Tax Administration Act;

 (5) the solid waste assessment fee authorized 
by the Solid Waste Act, which fee shall be considered a tax for 
purposes of the Tax Administration Act; 

 (6) the water conservation fee imposed by 
Section 74-1-13 NMSA 1978, which fee shall be considered a tax 
for the purposes of the Tax Administration Act; and

 (7) the gaming tax imposed pursuant to the 
Gaming Control Act; and

 D. the administration and enforcement of all other 
laws, with respect to which the depar