New Mexico 2025 Regular Session

New Mexico House Bill HB325 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 325
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Gail Armstrong and Mark Duncan and Mark B. Murphy
48	48	and Rebecca Dow and Joshua N. Hernandez
49	49	AN ACT
50	50	RELATING TO TAXATION; CREATING GROSS RECEIPTS TAX DEDUCTIONS
51	51	FOR SELLING LABOR INCURRED DURING THE CONSTRUCTION OF NEW
52	52	RESIDENTIAL HOUSING AND FOR SALES OF RESIDENTIAL HOUSING;
53	53	CREATING A HOLD HARMLESS DISTRIBUTION TO MUNICIPALITIES AND
54	54	COUNTIES.
55	55	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
56	56	SECTION 1. A new section of the Tax Administration Act is
57	57	enacted to read:
58	58	"[NEW MATERIAL] DISTRIBUTION TO HOLD HARMLESS
59	59	MUNICIPALITIES AND COUNTIES FROM GROSS RECEIPTS TAX DEDUCTIONS
60	60	FOR SELLING LABOR INCURRED DURING THE CONSTRUCTION OF NEW
61	61	RESIDENTIAL HOUSING AND FOR SALES OF RESIDENTIAL HOUSING.--
62	62	A. A distribution pursuant to Section 7-1-6.1 NMSA
63	63	1978 shall be made to a municipality in an amount, subject to
64	64	.229733.3 underscored material = new
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91	91	any increase or decrease made pursuant to Section 7-1-6.15 NMSA
92	92	1978, equal to the total deductions claimed pursuant to
93	93	Sections 2 and 3 of this 2025 act for the month by taxpayers
94	94	from business locations in the municipality multiplied by the
95	95	sum of the combined rate of all municipal local option gross
96	96	receipts taxes in effect in the municipality for the month plus
97	97	one and two hundred twenty-five thousandths percent.
98	98	B. A distribution pursuant to Section 7-1-6.1 NMSA
99	99	1978 shall be made to a county in an amount, subject to any
100	100	increase or decrease made pursuant to Section 7-1-6.15 NMSA
101	101	1978, equal to the total deductions claimed pursuant to
102	102	Sections 2 and 3 of this 2025 act for the month by taxpayers
103	103	from business locations:
104	104	(1) within a municipality in the county
105	105	multiplied by the combined rate of all county local option
106	106	gross receipts taxes in effect for the month that are imposed
107	107	throughout the county; and
108	108	(2) in the county but not within a
109	109	municipality multiplied by the combined rate of all county
110	110	local option gross receipts taxes in effect for the month that
111	111	are imposed in the county area not within a municipality."
112	112	SECTION 2. A new section of the Gross Receipts and
113	113	Compensating Tax Act is enacted to read:
114	114	"[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--SELLING LABOR
115	115	INCURRED DURING THE CONSTRUCTION OF CERTAIN NEW RESIDENTIAL
116	116	.229733.3
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144	144	HOUSING.--
145	145	A. Except as provided in Subsection B of this
146	146	section, receipts from selling labor incurred during the
147	147	construction of new residential housing may be deducted from
148	148	gross receipts.
149	149	B. Receipts shall not be deducted pursuant to this
150	150	section if any receipt of the taxpayer is deducted pursuant to
151	151	Section 3 of this 2025 act during the twelve-month period
152	152	described in that section.
153	153	C. A taxpayer allowed a deduction pursuant to this
154	154	section shall report the amount of the deduction separately in
155	155	a manner required by the department.
156	156	D. A taxpayer shall not claim a deduction pursuant
157	157	to this section and a deduction pursuant to Section 3 of this
158	158	2025 act.
159	159	E. The deduction provided by this section shall be
160	160	included in the tax expenditure budget pursuant to Section
161	161	7-1-84 NMSA 1978, including the total annual aggregate cost of
162	162	the deduction.
163	163	F. As used in this section, "residential housing"
164	164	means residential property that is a single-family residence, a
165	165	town house, a condominium or an apartment building."
166	166	SECTION 3. A new section of the Gross Receipts and
167	167	Compensating Tax Act is enacted to read:
168	168	"[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--CERTAIN NEW
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197	197	RESIDENTIAL HOUSING.--
198	198	A. Except as provided in Subsection B of this
199	199	section, a taxpayer may deduct from gross receipts up to:
200	200	(1) one hundred twenty-five thousand dollars
201	201	($125,000) during any twelve-month period from the sale of new
202	202	residential housing; and
203	203	(2) seventy-five thousand dollars ($75,000)
204	204	during any twelve-month period from the sale of new residential
205	205	housing that is intended for lease.
206	206	B. Receipts shall not be deducted pursuant to this
207	207	section if:
208	208	(1) the receipt is for a sale related to
209	209	renovation or remodeling; or
210	210	(2) during the twelve-month period, any
211	211	receipt of the taxpayer is deducted pursuant to Section 2 of
212	212	this 2025 act.
213	213	C. A taxpayer allowed a deduction pursuant to this
214	214	section shall report the amount of the deduction separately in
215	215	a manner required by the department.
216	216	D. A taxpayer shall not claim a deduction pursuant
217	217	to this section and a deduction pursuant to Section 2 of this
218	218	2025 act.
219	219	E. The deductions provided by this section shall be
220	220	included in the tax expenditure budget pursuant to Section
221	221	7-1-84 NMSA 1978, including the total annual aggregate cost of
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250	250	the deductions.
251	251	F. As used in this section, "residential housing"
252	252	means residential property that is a single-family residence, a
253	253	town house, a condominium or an apartment building."
254	254	SECTION 4. EFFECTIVE DATE.--The effective date of the
255	255	provisions of this act is July 1, 2025.
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257	257	.229733.3