New Mexico 2023 Regular Session

New Mexico House Bill HB354

Introduced
2/8/23  

Caption

Dyed Diesel Fuel Gross Receipts

Impact

The enactment of HB354 will amend Section 7-9-26 of the New Mexico Statutes, thereby facilitating clearer pathways for agricultural businesses to utilize dyed diesel fuel without the additional burden of taxation. This exemption could potentially lower operational costs for farmers, encouraging them to invest more in their agricultural practices and harvests. Furthermore, by supporting the agricultural sector, state lawmakers aim to contribute to economic growth within rural communities, where farming serves as a primary source of livelihood.

Summary

House Bill 354 proposes an exemption from the gross receipts tax and compensating tax for dyed diesel fuel utilized specifically for agricultural purposes. This legislative move aims to alleviate some financial burdens faced by farmers and agricultural businesses, who rely heavily on diesel fuel for their operations. By exempting these fuel types from taxation, the bill seeks to promote agricultural productivity and sustainability within New Mexico, which is a vital sector for the state's economy.

Contention

While HB354 presents significant benefits for the agricultural community, there may be opposition from other sectors concerned about the implications of tax exemptions. Critics could argue that such exemptions could lead to erosion of the state's tax base, affecting funding for public services. There is also a potential concern about ensuring that the exemption is not exploited by other industries claiming agricultural use. This could result in calls for clearer regulations or oversight to guarantee that the benefits of the tax exemption are appropriately directed towards intended agricultural operations.

Companion Bills

No companion bills found.

Previously Filed As

NM SB360

Dyed Diesel Fuel Gross Receipts

NM HB323

Change Name Of Gross Receipts Tax

NM HB219

Reduce Gross Receipts Tax Rate

NM HB367

Gross Receipts Rates & Professional Svcs.

NM HB117

National Lab Contractor Gross Receipts

NM HB504

National Research Facility Gross Receipts

NM SB118

Dyed Agricultural Diesel Fuel Tax Credit

NM HB67

Energy Facilities Bonds And Gross Receipts

NM SB5

Reducing Rates Of Gross Receipts Tax

NM SB383

Flood Recovery Bonds & Gross Receipts

Similar Bills

No similar bills found.