HB 79 — THANKSGIVING SATURDAY GROSS RECEIPTS

HOUSEAN BILLACT 79RELATING 53RDTO LEGISLATURETAXATION; - STATEOFNEWMEXICO- SECOND SESSION , 2018 INTRODUCED BY Doreen Y.

Gallegos and Steven P.

Neville 6 8 10 AN ACT RELATING TO TAXATION;

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

A new section of the Gross Receipts and e t 17 Compensating Tax Act is enacted to read:

w"DEDUCTION--GROSS l n d 18 "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS TAX--RETAIL = = 19 SALES BY CERTAIN BUSINESSES.-- a l i a e r 20 A.

ReceiptsPrior to July 1, 2020, receipts from the sale at retail of tangiblethe afollowing ttypes mof mtangible 21 personal property may be deducted if:if the sales price of the property is less than five hundred dollars ($500) and:

d r e 22 (1) the sale occurs during the period c e s k 23 beginning at 12:01 a.m.

on the first Saturday after e a n b 24 Thanksgiving day and ending at midnight on the same Saturday;

u [ and .209188.1 (2) the sale is madefor: by a seller that employed no more than twenty-five employees in New Mexico in the previous fiscal year.

(a) an article of clothing or footwear designed to be worn on or about the human body;

(b) accessories, including jewelry, handbags, book bags, backpacks, luggage, wallets, watches and similar items worn or carried on or about the human body, without regard to whether worn on the body in a manner HB 79 characteristic of clothing;

Page 1 (c) sporting goods and camping equipment;

(d) tools used for home improvement, gardening and automotive maintenance and repair;

(e) books, journals, paper, writing instruments, art supplies, greeting cards and postcards;

(f) works of art, including any painting, drawing, print, photograph, sculpture, pottery or ceramics, carving, textile, basketry, artifact, natural specimen, rare book, authors' papers, objects of historical or technical interest or other article of intrinsic cultural value;

(g) floral arrangements and indoor plants;

(h) cosmetics and personal grooming items;

(i) musical instruments;

(j) cookware and small home appliances for residential use;

(k) bedding, towels and bath accessories;

(l) furniture;

(m) a toy or game that is a physical item, product or object clearly intended and designed to be used by children or families in play;

HB 79 Page 2 (n) a video game or video game console and any associated accessories for the video game console;

or (o) home electronics such as computers, phones, tablets, stereo equipment and related electronics accessories;

and (3) the sale is made by a seller that carries on a trade or business in New Mexico, maintains its primary place of business in New Mexico, as determined by the department, and employed no more than ten employees at any one time during the previous fiscal year.

TheReceipts purposefor ofsales themade deductionby provideda bybusiness thisthat sectionoperates isunder toa increasefranchise salesagreement atmay smallnot localbe businesses.deducted pursuant to this section.

AThe taxpayerpurpose allowedof athe deduction pursuantprovided toby this section shallis reportto theincrease amountsales ofat thesmall deductionlocal separatelybusinesses. in a manner required by the department.

A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.

E.

The department shall compile and present the annual reportsreport to the revenue stabilization and tax policy committee and the HB 79 Page 3 legislative finance committee with an analysis of the e e 17 effectiveness and cost of the deduction and whether the e e n d 18 deduction is performing the purpose for which it was created." = = l ] 19 SECTION 2.

EFFECTIVE DATE.--The effective date of the a l r i 20 provisions of this act is July 1, 2018.

tHB e79 aPage t4 -9 225 - m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .209188.1