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Bill > HB278


NM HB278

NM HB278
Manufacturing Services Gross Receipts


summary

Introduced
02/11/2021
In Committee
03/19/2021
Crossed Over
03/03/2021
Passed
03/19/2021
Dead
Signed/Enacted/Adopted
03/20/2021

Introduced Session

2021 Regular Session

Bill Summary

AN ACT RELATING TO TAXATION; ADDING MANUFACTURING SERVICE PROVIDERS TO A GROSS RECEIPTS TAX DEDUCTION FOR MANUFACTURERS; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR CERTAIN BUSINESS SERVICES.

AI Summary

This bill makes several changes to the Gross Receipts and Compensating Tax Act in New Mexico. First, it adds "manufacturing service providers" to the existing gross receipts tax deduction for manufacturers, allowing them to deduct receipts from selling certain manufacturing consumables and qualified equipment. Second, it establishes a new gross receipts tax deduction for certain business services, including accounting, engineering, financial management, information technology, human resources, legal, and temporary services, when sold to sole proprietorships, limited liability companies, partnerships, or corporations. The bill aims to encourage manufacturing businesses to locate in New Mexico and reduce the tax burden on the tangible personal property consumed in the manufacturing process.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Signed by Governor - Chapter 66 - Apr. 5 (on 03/20/2021)

bill text


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