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652 TOWN OF TAGS ORDINANCES YEAR: NUMBER, r ORDINANCE NO. 652 �I AN ORDINANCE ENACTED PURSUANT TO SECTION 14-61.-3.1 NMSA 1953 IMPOSING A SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS TAX BE IT ORDAINED BY THE GOVERNING BODY OF THE TOWN OF TAOS: I� f Section 1. Short Title. This Ordinance may be cited as the "Town of Taos 1 Municipal Supplemental Gross Receipts Tax Ordinance." {� Section 2. DECLARATION OF INTENT AND PURPOSE. Pursuant to the Municipal Gross Receipts Tax Act (Section 14-61-1 to 14-61 -81 NASA 1953) which authorizes I� ff municipalities to enact a municipal gross receipts tax, it is hereby declared 'i the purpose and intent of the governing body of Town of Taos is to enact an ordinance imposing a gross receipts tax of an additional 1/21, in compliance ,i jwith the Municipal Gross Receipts Tax Act. It is .further declared the pur- pose and intent of this ordinance is to conform to the definitions and appli- cable gross receipts tax provisions of the New Mexico Gross Receipts and Com- pensating Tax Act and any interpretation of this ordinance should be in con- formity with the applicable sections of the Gross Receipts and Compensating ,+ Tax Act. Section 3. DEFINITIONS. As used in the Town of Taos Municipal Supple- mental Gross Receipts Tax Ordinance: a� A. "bureau" means the revenue division of the taxation and revenue department, the director of that division or any employee of the division i exercising authority lawfully delegated to him by the director �j B. "buying" or "selling" means any trensfer of property for considers- i !� tion or any performance of service for consideration; j 'j C . "construction" means building, altering, repairing or demolishing iii the ordinary course of business an i ii � y� f z ;! 1. road, highway, bridge, parking area or related project; 2. building, stadium or other structure; 3. airport, subway or similar facility; 4. park, trail, athletic field, golf course or similar facility; I 5. dam, reservoir, canal, ditch or similar facility; • 6. sewerage or water treatment facility, power generating plant, ramp station, natural gas compressing station or similar facility; I j� 7. sewerage, water, gas or other pipeline; 8, transmission line; 9. radio or other tower; 10. water, oil or other storage tank; l( 1� 11. shaft, tunnel or other mining appurtenance; or 12. similar work; (i 'bonstruction" also means: 13. leveling or clearing land; i 1 14, excavating earth; 15. drilling wells of any type, including seismograph shot holes j' or core drilling; or j 16. similar work; I D. "financial corporation" means any savings and loan association, or I any incorporated savings and loan company, trust company, mortgage banking comp - 1 !� ny� or other financial corporation; E. "engaging in business" means carrying on or causing to be carried i1 on any activity with the purpose of direct or indirect benefit; } ji F. "gross receipts" means the total amount of money or the value of ff I� l other consideration, received from selling property, from leasing property f i or from performing services, and includes any receipts from sales of tangible f' personal property handled on consignment but excludes cash discounts allowed j� and taken, New Mexico gross receipts tax payable on transactions for the re- } j porting period and taxes imposed pursuant to the provisions of the County E Sales Tax Act, County Gross Receipts Tax Act, or the Municipal Gross Re- I ceipts Tax Act which are payable on transactions for the reporting period i �( and any type of time-price differential. i� - 3 - ! I I l In an exchange in which the money or other consideration received does not represent the value of the property or service exchanged, "gross receipts" ji means the reasonable value of the property or service exchanged. liWhen the sale of property or service is made under any type of charge, Iconditional (,r time sales contract c_ the leasing of property is made under a a leasing contract, the seller or lessor may elect to treat all receipts, jexcluding any type of time-price differential, under such contracts as gross receipts as and when the payments are actually received. if the I� Seller or lessor transfers his interest, in any such contract to a third{i a (I he shell pay the gross receipts tax upon the full sale or leasing con- tract amount, excluding any type of time-price differential. I I� "Gross Receipts" for the purposes of the business of buying, selling � or promoting the purchase, sale or leasing, as factor, agent or broker, i on a �:ommission or fee basis, of any property, service, stock, bond I Ior security, includes only the total commissions or fees derived from the bus- iness; "Gross Receipts" also includes amounts paid by members of any cooperative �i �! association or similar organization for sales or leases of personal property ! +� or performance of services by such organization; I I Ij G. "manufacturing" means combining or processing compon3nts or mater- -� ials to increase their value for sale in the ordinary course of business � but does not include construction; 'I "j H. "person" means: i; 1. any individual, estate, trust, receiver, cooperative I club, corporatiut:, company, firm, partnership, ,joint venture, syndicate iy t �i or other entity, including any gas, water or electric utility owned or opera- !; ted by a county, municipality or other political subdivision of the sate; or i� 2. the United States or any agency or instrumentality thereof, i i s r I I the State of New Mexico or any political subdivision thereof; I. It means real property, tangible personal property, licen- ses, franchises, patents, trademarks and copyrights. Tangible personal pro- perty includes electricity; � ;{ J. "Leasing" means any arrangement whereby, for a consideration, pro- perty is employed for or by any person other than the owner of the property; K. "service" means all activities engaged in for other persons for a j� consideration, which activities involve predominantly the performance of a service as distinguished from selling property. In determining what is a ser- vice, the intended use, principal objective or ultimate objective of the con- {` tracting parties shall not be controlling. "Service" includes construction activities and all tangible personal I� property that will became an ingredient or component part of a construction I j project. However, sales of tangible personal property that will become an i 1 ingredient or component part of a construction project to persons engaged in the constriction business are sales of tangible personal property; I T,. "use" or "using" includes use, consumption or storage other than li storage for subsequent sale in the ordinary course of business or for use sole-f '1 ii ly outside this state; M. "municipality" means the Town of Taos; and j i N. "municipal gross receipts tax" means the municipal gross receipts tax imposed by the Town of Taos, ?:u„icipal Gross Receipts Tax Ordinance. i� Section 4. IMPOSITION OF TAX-RATS; - P!,&3UMPTION OF TAXAPTLITI. i Ij A. There is hereby imposed on any person engaging in business in the II 1 4 municina?.ity for the privilege of engaging in business in the municipality an i i it excise tax to be referred to as the "municipal gross receipts tax". The rate of the tax shall be equal to an additional one-half per-cent of the gross { receipts of the person engaging in business . t� I B. To prevent evaaion of the municipal gross receipts tax and to aid t in its administration, it is presumed that all receipts of a person engaging 4� 4 I4 I ' • in business within the municipality are subject to the municipal gross re- ceipts tax. Section 5. DEPOSIT OF PROCEEDS. All revenues distributed to the muni- cipality by the bureau pursuant to the provisions of the Municipal. Gross Re- ceipts Tax Act shall_ be de_dosited into the general fund of' the municipality, it unless otherwise specified in Section 14 of this ordinance. I ;i Section 6. SEPARATELY STATING THE MUNICIPAL GROSS RECEIPTS TAX. When i� the municipal gross receipts tax is stated separately on the books of the ;i seller or lessor, and if the total amount of tax that is stated separately on i� J transactions reportagle within one re- sting period is in excess of the a- I +� mount of municipal gross receipts tax otherwise payable on the transactions !I on which the tax was stated separately, th i excess amount of tax stated i; on the transactions within that reporting period shall be included in gross I, receipts. it !� Section 7. DATE PAYMENT DUE. The taxes imposed by this ordinance are to be paid on or before the twenty-fifth day of the month following the month i ii in which the taxable event occurs or as otherwise authorized by the bureau. Section 8. EXEMPTIONS. i A. No municipal gross receipts tax shall be imposed on the gross re- is ceipts arising from; 1. the transmission of messages by wire or other means from one ` point within the municipality to another point outside of the municipality; 2. transporting persons or property for hire by railrorid, motor ,I r vehicle, air transportation or any other means from one point within the municipality to another point outside the municipality; or j; 3. a business located outside the boundaries of a municipality �i on land owned by that municipality for which a gross receipts tax distribu- tion is made pursuant to Paragraph 3 of Sub-Section D of Section 72-13-24, + N.M.S.A. 1953. 5 - fi I� I ii i B. Exempted from the municipal gross receipts tax are those receipts exempted in paragraphs 1 through 23 of this subsection of section 8, of the I; Municipal Gross Receipts Tax Ordinance. I. Governmental agencies. Exempted from the municipal gross receipts I tax are the receipts of the United States or any agency or instrumentality it thereof or the State of New Mexico or any political subdivision thereof. i Receipts from the sale of gas, water or electricity by a utility owned ii j or operated by a zounty, municipality or other political subdivision of the state are not exempted from the municipal gross receipts tax. jj 2. Certain non-profit facilities. Exempted from the municipal gross i' receipts tax are the receipts of non-profit entities from the operation of j facilities designed and used for providing accommodations for retired elderly !i persons. I� 3. Wakes. Exempted from the municipal gross receipts tax are the ii receipts of employees from wales, salaries, commissions of from any other form if of remuneration for personal services. 14. Agricultural products. Exempted from the municipal gross receipts tax are the receipts of growers, producers, trappers or non-profit market- ing associations from selling livestock, live poultry, unprocessed agricul- tural. products, hides or pelts. Persons engaged in the business of buying and selling wool or mohair or of buying and selling livestock on their own i account are producers for the purposes of this section. I J Receipts from selling dairy products at retail are not exempted from the municipal gross receipts tax. I! 5. Livestock feeding. Exempted from the municipal gross receipts tax i t f i are the receipts of any person derived from feeding or pasturing livestock. I! Receipts derived from penning or handling livestock prior to sale are re- ceipts derived from feeding livestock for the purposes of this section. I I Receipts derived from training livestock are receipts derived from feed- it ing livestock for the purposes of this section. 6 I I i f I ii fi i i �) 6. Banks and financial corporations. Exempted from the municipal. gross �E receipts tax are the receipts of banks and financial corporations from selling i or leasing property or services in the course of their regular banking and financial corporation functions. i' !! 7. Vehicles . Exempted from the municipal gross receipts tax are the receipts from selling vehicles on which a tax is imposed by Section 64-11-15 i! NMSA 1953 and on vehicles subject to registration under Section 64-3-12.3 NMSA 1953- 8. Insurance companies. Exempted from the municipal. gross receipts tax are the receipts of insurance companies or any agent thereof from premiums. 9. Dividends and interest. Exempted from the municipal gross receipts tax are the receipts received as interest on money loaned or deposited, re- I I� I ceipts received as dividends or interest from stocks, bonds or securities or ' I receipts from the sale of stocks, bonds or securities. ii ! 10. Fuel. Exempted from the municipal gross receipts tax are the re- .i ' ceipts from selling and the use of gasoline or special fuel on which the ;i tax imposed by Section 72-27-3 NMSA 1953 or Section 64-26-68 A'MSA 1953 has i� been paid and not refunded . 'f I 11. Occasional sale of property or services. Exempted from the munici- pal gross receipts tax are the receipts from the isolated or occasional sale i of or leasing of property or a service by a person who is neither regu:Larly engaged nor holding himself out as engaged in the business of selling or leasing the same or similar property or service. I ,. � P P Y 12. Certain organizations. Exempted from the municipal gross receipts ! tax are the receipts of organizations that demonstrate to the bureau that they have been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501 (c) (3) of the United States Internal Revenue Code of 1954, as amended or 'I i aj I ;I I! ii +1 E renumbered. i 13. Resale activities of an armed forces instrumentality. Exempted It from the municipal gross receipts tax are the receipts from selling tangible i '! personal property and the •ise of property by any instrumentality of the arm- ed forces of the United States engaged in resale activities. 14. Oil and gas or mineral interests . Exempted from the municipal I� ii 'I gross receipts tax are the receipts from the sale of or leasing of oil, natur- al gas or mineral interests. I! 15. Persons subject to oil and Gas Emergency School Tax Act. When a ii privilege tax is imposed by the Oil and Gas Emergency School. Tax Act, the �! provisions of such act shall apply and determine the full measure of tax lia- bility for the privilege of engaging in the business stated in the act, and i� no provision of the Municipal Gross Receipts Tax Ordinance shall apply to ;i I! or create a tax liability for such privilege; except that any person engaging ` i i in business of severing oil, natural Zas or liquid hydrocarbons from the I; IC soil of this state, who sells oil, natural gas or liquid hydrocarbons other I! I I( than for subsequent resale in the ordinary course of business or for use as I "! an ingreuient or component part of a manufactured product is subject to the i� Municipal Gross Receipts Tax Ordinance as to those sales, as well as to the I i� Oil and Gas Emergency School Tax A^t. I! i No provision of the Municipal Gross Receipts Tax Ordinance shall apply a to the storage of oil, natural gas or liquid hydrocarbons, individually or any combination thereof, or to the use of such products for fuel in the opera- tion of a "production unit" as defined by the Oil and Gas Emergency School i Tax Act. 16. Refiners and persons subject to Natural has Processors Tax Act. j{ When a privilege tax is imposed by the Natural Gas Processors Tax Act, the I j provisions of the act shall apply and determine the full. measure of tax lia- bility f-r the privilege of engaging in the business stated in the act and no �I 1 i � i provision of the Municipal Gross Receipts Tax Ordinance shall apply to or create o tax liability for such privilege, except that any producer or pro- cessor of natural gas or liquid hydrocarbons who sells nriturnl gas or liquid hydroc ?rhons otter than for subsequent resale in the ordinfl x^r course of busi- ness or for use as on ingredient or component pars; of a manufactured pro- duct is subject to the Miinicipol gross Receipts Tax Ordinance as to those sales, as well as to the Natural ,,..s Processors Tax No provision of the Municipal Gross Receipts Dix Ordinance shall apply to the storage or use of os.i., natural gas or liquid hydrocarbons , individually or any combination thereof, when stored or used by a "proces'sor��, as defined by the I1L.tural. Gas Processors Tax Act, or by a person engaged in the business of refining oil, natural gas or liquid hydrocarbons, who stores or uses the oil, natural gas or liquid hydrocarbons, in the regular course of his refining business. 17. Persons subject to Resources Excise Tax Act . When a privilege tax is imposed by the Resources Excise Tax Act, the provisions of the act shall. apply and determine the full_ measure of tax liability for the privilege of en- gaging in the business stated in the act and no provision of the Municipal Gross Receipts Tax Ordinance shall apply to or create a tax liability for such privilege except in the same manner as is provided in Section 72-16A-27 NMSA 1953 in regard to the New Mexico Gross Receipts and Compensating Tax Act. 18. Oil and gas consumed in the pipeline transportation of oil and gas products . Exempted from the municipal gross receipts tax are receipts from the sale of oil, natural gas, liquid hydrocarbon or any combination thereof consumed as fuel in the pipeline transportation of such products . ltd. Fees from social organizations. A. Exempted from the gross receipts tax are the receipts from dues and registration fees of nonprofit social, fraternal, political., trade,labor or professional organizations and business leagues. i! l Ji 1 B. For the purposes of this section: t 1. "dues" means amounts that a member of an organization pays at recurring intervals to retain membership in an organization where such amounts` are used for the general maintenance and up-keep of the organization; and 2. "registration fees" means amounts paid by persons to attend a P specific event sponsored ly an organization to defray the cost of the event 2.0. Purses and joc:cey renumeration at New Mexico race tracks. Exempted from the municipal gross receipts tax are the receipts of horsemen, jockeys i, is and trainers from purses at New Mexico horserace tracks subject to taxes levied under Section 60-6-9 NMSA 1953• 21. Religious activities. Exempted from the municipal gross receipts tax are the receipts of a minister or a religious organization, which organ- ization has been granted an exemption from federal income tax by the United t States commissioner of internal revenue as an organization described in Sec- tion 501 (c) (3) of the United States Internal Revenue Code of 1954, as amend- ed or renumbered, from religious service provided by the minister to an indi- vidual recipient of the service. 22. Theatrical and television films and tapes. Exempted from the muni- cipal gross receipts tax are the receipts from the leasing or licensing of theatrical. and television films and tapes of any kind. 23. Temporary Provisions. Exempted from the municipal gross receipts tax are receipts from contracts entered into prior to the April. 1.0, 1.975, which do not permit an increase in price to cover the municipal gross receipts tax and which are registered with the bureau of revenue as provided by the comm- 1 issioner. Such receipts shall be taxed according to the laws existing prior to April. 10, 1975. Section 9. NONTAXABLE TRANSACTION CERTIFICATES FARMERS AND RANCHERS STATEME?TeS, AND OTIM EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS. A. All nontaxable transaction certificates executed by buyers -10- I� �I �i 0 • � • I or lessees should be in the possession of the seller or lessor for nontaxable i transactions at the time the nontaxable transactions occur. If the Seller or lessor is not in possession of these nontaxable transaction certificates within sixty days from the date of notice requiring the possession of these nontaxable transaction certificates is given the seller or lessor by the commissioner of revenue or his delegate, deductions claimed by the seller or lessor which required delivery of these nontaxable transaction certificates shall be disallowed. The nontaxable transaction certificates shall contain the information and be in a form prescribed by the bureau. Only buyers or " A lessees who have a registration number or have applied for a registration number and have not been refused one under subsection C of Section 72-13-2(a NMSA 1953 shall. execute nontaxable transaction certificate: . When the seller or lessor accepts a nontaxable transaction certificate within the required time and in good faith that the buyer or lessee will employ the property or se rvi-e transferred in a nontaxable manner, the properly executed nontaxable transaction certificate shall be conclusive evidence, and the only material evidence, that the proceeds from the transaction are deductible from the seller's or lessor's gross receipts. R. Properly executed documents required to support the deductions pro- vided in subsections L, M, and CC of Section 11, should be in the possession cf the seller at the time the nontaxable transactions occur. If the seller is not in possession of these documents within sixty (60) days from the date notice requiring the possession of these documents is given to the seller by the commissioner or revenue or his delegate, deductions claimed by the seller or lessor which require delivery of these documents shall be disallowed. These documents shall contain the information, and be in a form, prescribed by the I bureau. When the seller accepts these documents within the required time and in good faith that the buyer will employ the property or service transferred i in a nontaxable manner, the properly executed documents shall be conclusive evidence, and the only material evidence, that the proceeds from the trans- s' l� � r • • 1 action are deductible from the Seller's gross receipts. I C. Notification, as that term is used in this section, is sufficient I if the notice is mailed or served as provided in subsection A of Section 72- 13-26 NMSA 1953. Notice by the commissioner under this section shall not be given prior to the commencement of an audit of the seller from whom the documents are required. Section 10. SUSPENSION OF THE RIGID TO USE A NONTAXABLE TRANSACTION CERTIFICATE. If the commissioner suspends the right of any perston to use nontaxable transaction certificates pursuant to Section 72-16A-13, NMSA 1953, such suspension applies to the use of such certificates under the Municipal Gross Receipts Tax Ordinance. Section 11. DEDUCTIONS. In computing the municipal gross receipts tax due, only the receipts specified in subsections A through EE of Section 11 of the Municipal Gross Receipts Tax Ordinance may be deducted. Receipts, whether specified once or several times in subsections A through EE of Section 11, may be deducted only once from gross receipts. A. Sales to manufacturers. Receipts from selling tangible personal property may be deducted from gross receipts if the sale is made to a person engaged in the business of manufacturing who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must incorporate the tangible personal property as an ingredient or component part of the product which he is in the business of manufacturing. B. Ssl.e of tangible personal property for resale. Receipts from selling tangible personal property may be deducted from gross receipts if the sale is made to a person who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must resell the tangible personal property either by itself or in combina- tion with other tangible personal property in the ordinary course of business. - 12 it I; i fi 'i { s C. Sale of a service for resale. Receipts from selling a service for resale may be deducted from gross receipts if the sale is made to a person who delivers a nontaxable transaction certificate. The buyer delivering the nontaxable transaction certificate must separately state the value of the ser- vice purchased in his charge for the service on its subsequent sale, and the .e subsequent sale must be in the ordinary course of business and subject to the 1. municipal gross receipts tax. ' D. Sale of tangible personal property for leasing. Receipts from sell- ing tangible personal property, other than furniture or appliances the re- ceipts from the rental or .lease of which are deductible under Paragraph 3 1 ;+ of Subsection H of Section 11 and other than mnbile homes as defined in Sec- I l Lion 64-1-8 NMSA 1953, may be deducted from gross receipts if the sale is made it i, to a person who delivers a nontaxable transaction certificate to the Seller. The buyer delivering the nontaxable transaction certificate must be engaged I in a business which derives a substantial portion of its receipts from leasing , or selling tangible personal property of the type leased. The buyer may nct utilize the tangible personal property in any manner other than holding it for lease or sale, or leasing or selling it either by itself or in combination with other tangible personal property in the ordinary course of business. E. Lease for subsequent lease. Receipts from leasing tangible personal property, other than furniture or appliances the receipts from the rental or lease of which are deductible under Paragraph 3 of Subsection ti of Section 11, and other than mobile homes as defined in Section 64-1-8 NMSA 1953, may be deducted from gross receipts if the lease is made to a lessee who delivers a nontaxable transaction certificate to the lessor. The lessee delivering the nontaxable transaction certificate may not use the tangible personal property in any manner other than for subsequent lease in the ordinary course of business. F. Sale of tangible personal property to persons engaged in the construction business. , ii -13- i it ,._ t i{II 1. Receipts from selling tangible personal property may be deduct- ed from gross receipts if the sale is made to a person engay�ged in the con- struction business who delivers a nontaxable transaction certificate to the seller. 2. The buyer delivering the nontaxable transaction certificate mu incorporate the tangible personal property as: a. an ingredient or component part of a construction project which is subject to the municipal gross receipts tax upon its r completion or upon the completion of the overall construction project of which it is a part; or b. an ingredient or component part of a construction project which is subject to the municipal gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed. G. ,iale of construction services to Arsons engaged in the construction business. 1. Receipts from selling a construction service may be deducted from gross receipts if the sale is made to a person engaged in the construction business who delivers a nontaxable transaction certificate to the person per- forming the construction service. 2. The buyer delivering the nontaxable transaction certificate must have the construction services performed upon: a. a construction project which is subject to the municipal gross receipts tar, upon its completion or upon the completion of the overall construction project of which it is a part; or b. a construction project wh& is subject to the municipal gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed . r - 14 - I� II I� i ��I H. Sale or lease of real property and lease of mobile homes. f 1. Receipts from the sale or lease of real property, and from the � P P P Y, is lease of a mobile home as defined in Section 64-1-8 WA 1953 and as provided in Subsection 2 of this Section, other than receipts from the sale or lease of oil, natural gas or mineral interests exempted by Paragraph 14 of Subsection R of Section 8, may be deducted from gross receipts. However, that portion of the receipts from the sale c'.' real property which is attributable to improvements constructed on the real property by the seller in the ordinary course of his construction business may not be deducted from gross receipts. 2. Receipts received by hotels, motels, rooming houses, camp- grounds, guest ranches , trailer parks, or similar facilities, except receipts received by trailer parks from the rental of a space or a mobile home for a period cf at least one month, front lodgers, guests, roomers or occupants are not receipts from leasing real property for the purposes of this section. 3. Receipts attributable to the inclusion of furniture or appli- ances fuArnished as part of a leased or rented &elli.ng house, mobile homes defined in Section 64-1-8 NMSA 1.953 or apartment by the landlord or lessor may be deducted from gross receipts. I. Sales to governmental agencies. Receipts from selling tangible personal property, other than nonfissionable metalliferous mineral ore, to the United States or any ;agency or instrumentality thereof or the State of New 'Aexico or any political subdivision thereof may be deducted from gross receipts. Receipts from selling tangible personal property, other than nonfissionable metalliferous mineral ore, to the governing body of an Indian tribe or Indian Pueblo for use on Indian reservations or Pueblo grants, may be deducted from gross receipts. That portion of the receipts from performing a service as defined n Subsection K of Section 3 which reflects the value of tangible per- sonal property utilized or produced in performance of such service is not deductible. -15- 1i J. Transactions in Interstate Oommerce. Receipts from transaction in i; interstate commerce may be deducted from gro -,s receipts to the extent that the imposition of the municipal gross receipts tax would be unlawful under the United States Constitution. K. Intrrstaate Transportation and Services in Interstate Commerce. 1. Receipts from transporting persons or property from on- point to another in this state may be deducted from gross receipts when such persons or property, including my special or extra service rensonab.ly neeessrir:� in connection therewith, are being transported in interstnte or foreign commerce under xi single contract. ?. Receipts from handling, stora;e, drayage c,r pryck inF, „t' property or nny other accessorial services o,i propertY, which property hvis move(I or will move in interstate or foreign commerce, when such services !ire performed by :, local agent fcr a cnrrier or a currier, -)nd when such :services !!re per- formed under a single contract in .relation to transportation services, mny be deducted from gross receiptG . L. Sale of certain services to ran outs- of-state buyer. 1. Receipt:, from performi!if; _] service, other than P teg^1, �iccou'rt- ing or archit:ectu ^al service , may be deducted from gross; receipts if t-,,e ,,ale Wit' the service is mrde to ,, buy::r wh.r) delivers ,.o the seller either •) 'aontux,)ble transaction cert`..fi.cnte or other evidence =.ccepteble to the commissinr,er tint the transncti.on does not contravene the conditions set, out in Oub-;section C of t.hi s Section. ?. The buver delivering the nontaxable transaction certifir_;,te or other evidence acceptable to the commissioner must, not contravene the. conditions set out in 3,rbSect. ' on C of ,:his ;,ection. �. Receipts from performunee of n service shell :sot be subject to the deduction provided in triis section if the buver of the service, anal of his employees or any person in privity with him. - 16 - a. makes initial use of the product of the service in New Mexico. !f b. takes delivery of the product; of the service in New Mexicn; or C. concurrent with the performance of the service, has i II regular place of work in New Mexico or spends more than brief rind occasional. oeri.ods of time in New Mexico nrnd; i I i.. hns, any communication in New M,_xico relr+ted in nny i — way to the subject matter, performance or ndministration �iof the service, with the person performing the service; or ,i li i i . himself performs work in New Mexico relti ted to the subject matter of the service. ii •4 M. Feed, Fertilizers . Receipts from selling feed for livestock, fish raised for human consumption, poultry or for animals raised for, their hides � or pelts, seeds , rotts , bulbs, plants, soil conditioners , fertilizers, insec- ticides, fungicides or weddicides or water for irrignticn purposes be de- ducted from gross receipts if' the sole is mnde to person who states in wri- ting t'iat; he is regul,.jrly engaged in the business of Cnrm;ng, ranching or the raising of animals for their hides or pelts. Receipts of auctioneers i I from selling livestock or other agricultural products at. auction may also be r , f deducted from gross receipts . N. Warehousing, threshing, hnrvesting, growing: cultivating and pro- , , cessing agricultural products. i i 1. Receipts from warehousing grain or other agricultural products may be deducted from gross receipts . . Receipts from threshing, cleaning, growl- 9s cultivating or har ;; vesting ngricult;irnl products, including the ginning of cotton or processing for growers , producers or non-profit. marketing associations of other ngricul- tural products raised for food and fiber, including livestock, may be deducted i from gross receipts. - 17 - if j , 0. Sales to certain organizations. Receipts from selling tangible personal propert , other than metalliferous mineral ore, to organizations that have been granted exemption from the federal income tax by the United !! States commissioner of internal rev(�6e an organizations described in Section ;i �I 501 (c) (3) of the United States Internal Revenue Code of 1954,. as amended or I renumbered, may be deducted from gross receipts if the sale is made to an 11 organization that delivers a nontaxable transaction certificate to the seller. { The buyer delivering the nontaxable transaction certificate must employ the tangible personal property in the conduct of functions described in Section 501 (c) (3) and must not employ the tangible personal property in the conduct ii 11 a� of an unrelated trade or busitless as defined in Section 51.3 of the United States Internal Revenue Code of 1954, as amended or renumbered. Receipts from �j selling tangible personal property that will. become an ingredient or component !i part of a construction project are not receipts from selling tangible personal ! property for purposes of this Section. P. Sales to Ba-iks and Financial Corporations. Receipts from selling I� tangible personal property, other than metalliferous mineral ore, to banks `I I !j and financial corporations who employ the tangible personal property in their I� ! regular banking and financial corporation functions may be deducted from gross ] receipts . Agricultural Implements - Aircraft vehicles that are not required registered. (SO%) if to be ve$a*ts ed. Fifty per cent/of the receipts from selling agricultural ! i� ii implements , farm tractors, aircraft or vehicles that are not required to be registered under the Motor Vehicle Code, Sections 64-1-1 to 64-23-24 NMSA 19531 I I may be deducted from gross receipts. Any deduction allowed tinder Subsection L f !j of Section 11 must be taken before the deduction allowed by this sec' -on is yy computed. �i ! R. Publication Sales . Receipts from publishing newspapers or mag,�zines; i� I except from selling advertisinc5 space, ma,y be deducted from gross receipts. i Receipts from selling magazines at retail may not be deducted from gross � receipts. I ; 1� �, M S. Newspaper Sales. Receipts from selling neitspapers, except from sell- ing advertising space, may be deducted from gross receipts. T. Chemicals and reagents. Receipts from selling; chemicals or rea- l; gents to any mining, milling or oil company for use in processing ores or oil i. �iin a mill, smel.;,er or refinery or in acidizing oil wells and receipts from j selling chemicals or reagents in logs in excess of eighteen tons may be ded- ticted from gross receipts. Receipts from selling explosives, blasting power �t + or dynamite may not be deducted from gross receipts . i i� ll (i U. Commissions . Receipts derived from commissions on sales of tangible ii ', personal property which are not subject to the municipal gross receipts tax may be deducted from gross receipts. f V. Refunds . Uncollectable Debts. Refunds and allowances made to buyers !I ; � or amounts written off the books as an uncollectible debt by a person report- (I i ing municipal gross receipts tax on an accrual basis may be deducted from �i i gross receipts. If' debts reported uncollectible are subsequently coI.lected, ii such receipts sb;ill be included in gross receipts in the month of collection. W. Warranty Obligations. Receipts of a dealer from furnishing goods I� (' or services to the purchaser of tangible personal property fulfill a Warranty � I i obligation of the manufacturer of the ? g property may be deducted from gross re- + i Ij } j ceipts. X. Administrative and Accounting Services. Receipts of a corporation , for administrative and accounting services performed by it for a wholly-owned subsidiary corporation upon a nonprofit or cost basis, and receipts from a wholly-owned subsidiary for the Joint use or sharing of office machines and facilities upon a nonprofit or cost basis, may be deducted from gross receipts . i Y. Rental. or Lease of Vehicles used in Interstate Commerce. Receipts from the rental or leasing of vehicles used in the transportation of passengers, or property for hire in interstate commerce under the regulations nr authori.- i I+ j� zation of any agency of the United States may be deducted. l! Z. Trade-In Allowance. That portion of the receipts of a seller that jI is represented by a trade-in of tangible personal property or the same type � !� being sold may be deducted from gross receipts . i� �I - 19 - ' AA. Special Fuel. Receipts from the sale of special fuel, as defined in Section 64-26-67 NMSA 1953, may be deducted from gross receipts if the pur- H chaser is a bonded special fuel user under Section 64-26-73 NMSA 1953 who deliv rs i. a nontaxable transaction certificate to the seller. i� BB. Sale of Prosthetic Devices. Receipts from selling prosthetic de- ' vises may be deducted from gross receipts if the sale is made to a person who 1 t is licensed to practice medicine, osteopathy, dentistry, podiatry, optometry, chiropractic or professional nursing and who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction i! certificate must deliver the prosthetic device incidental to the performance f li of a service and must include the value of the prosthetic device in his charge for the service. i !i CC . Sale of property used in the Manufacture of Jewelry. Receipts from I selling tangible personal property may be deducted from gross receipts if' the sale is made to a person who states in writing that he will use the property i so purchased in manufacturing jewelry. The buyer must incorporate the tangi- ble personal property as an ingredient or component part of the jewelry that, j i' he is in the business of manufacturing. The deduction allowed a seller !I,-,der i !. this section shall not exceed the stun of $1,000.00 durtnfT any twelve montlh I !; period attributable to purchases by a single purchaser. i i; DD. Sale of cert nin services performed directly on product I: i Receipts from selling the service of combining or processing components or materials may be deducted from gross receipts if the sale is made t.�­ a person i is ,�naaged in the business of manaf icturingr w"- delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction ' certificate must have the service nerformed directly upon a tangible personal. i ;I ii property which he is in the business of manufacturing or upon ingredients or ! I component parts thereof. ZE. Travel Agent's Commissions paid by certain entities. Receipts of travel agents derived from commissions paid by maritime transportation com- I i 20- I i 1 panies and interstate airlines, railroads and passenger buses for booking, referral, reservation or ticket services, may be deucted from gross receipts. ! 1 Section 1.2. SEVERABILITY. If any or parts or application of any port ' of the Municipal Gross Receipts Tax Ordinance is held invalid, such holding h shall not affect the v.31idity of the remaining parts of the Municipal Gross f� ! 11 Receipts T,3x Ordinance. The governing, body ,.hereby declares that it would .1 have passed the remaining parts of the Municipal Gross Receipts Tax Ordinance i' jl even if it, had known that such part -r parts or application of any part {y thereof would be declared invalid. Further, the governing body declares that if any deduction or exemption granted by the Municipal Gross Receipts Tax iiOrdinance be held invalid, it is the intent of the governin,; body that the unaffected remainder of Municipal Gross Receipts Tax Ordinance be continued !� in force and that the taxpayers theretofore enjoying such deduction or exemp- tion shall thenceforth, from the effective date of the declaration of invalidity !! r i be liable for the rate of tax under Section 4 of the Municipal Gross Receipts it Tax Ordinance. I ji Section 13. BUREAU AS AGENT FOR COLLECTION, MUNICIPALITY LIABLE ON 1 REFUNDS. This municipality hereby appoints the New Mexico bureau o`' revenne as its anent to administer and enforce the collection of the Municipal Gross +i Receipts Tax. The Ta, Administration Act (Sections 72-13-13 through 72-13-94 i 1; NMSA 1953) applies to the administration and enforcement of the Municipal Gross Receipts Tax Ordinance. Any refund or other reimbursement which is due f � i a taxpayer under the Municipal Gross Receipts Tax Ordinance is a debt owing to ji such taxpayer from the municipality. The Bureau may remit such refund or reim-! I bursement to the taxpayer and deduct an equivalent amount from current is collections attributable to the municipality. Should current collections not i be sufficient to satisfy all refunds and reimbursements that are due and owing, the Bureau is authorized and directed to make such refunds and reim- ! d bursements from the amounts of state gross receipts tax otherwise distribut- able , j( able to the municipality under the provisions of Section 72-13-24 NMSA 19,53. I� I - 21 - '' 4 � I the Bureau is unable to otherwise satisfy all refunds and reimbursements that are due and owing, the Bureau shall so advise the municipality, and the municipality shall treat such refunds and reimbursements as extraordinary, I nonrecurring debts for which the municipality shall be liable as if it had been a party to the claim for refund or reimbursement, and which shall be satisfied by additional assessments of the citizens of the municipality or by another legal means. Should the Bureau require it, the municipality will enter a contract with the Bureau, whose terms are the same as those set-out in this Section. I �I Section 14 - DEDICATION. The supplemental Municipal Gross Receipts Tax i is to be deposited in the General Fund of the Town of Taos. E Section 15. EFFECTIVE DATE. The effective date of the Municipal Supple- mental Gross Receipts Tax Ordinance shall be July 1, 1979 PASSED AND APPROVED AS TO FORM THIS 20th day of September, 1978 ATTEST: S � l e � c t y,.e.- � �- ✓ MAYOR MU IPA CLERK ' APPROVED AS TO FORM AND EFFECTIVE DATE THIS 26th day of January, 197,9. fir+ REVENUE DIRECTOR " I hereby certify that this Municipal Supplemental Gross Receipts Tax Ordinance was duly enacted by vote of the governing body on 20th day of September , 1978. (j AT7T: jx :�- Q�Ct'-;ice MAYOR iwTCV L CL K" t - 22--- the Bureau is unable to otherwise satisfy all refunds and reimbursements that are due and owing, the Bureau shall so advise the mupicipality, and the municipality shall treat such refunds and reimbursements as extraordinary, nonrecurring debts for which the municipality shall be liable as if it had been a party to the claim for refund or reimbursement, and which shall be satisfied by additional assessments of the citizens of the municipality or by another legal Means. Should the Bureau require it, the municipality will enter a contract with the Bureau, whose terms are the same as those set-out in this Section. Section 14 - DEDICATION. The supplemental Municipal Gross Receipts Tax is to be deposited in the General Fund of the Town of Taos. Section 15. EFFECTIVE DATE. The effective date of the Municipal Supple- mental Gross Receipts Tax Ordinance shall be July 1, 1979 PASSED AND APPROVED AS TO FORM THIS 20th day of September, 1978 ATTEST: ,'G.• '� i zt-P- ;'-%' �;'`x ; �e" MAYOR MUNICIPAI CLERK , APPROVED AS TO FORM AND EFFECTIVE DATE THIS 26th day of 'January, 1979.. REVENUE DIRECTOR " I hereby certify that this Municipal Supplemental Gross Receipts Tax Ordinance was duly enacted by vote of the governing body on 20th day of September , 1978. ATTEST: MAYOR 14MC IPAL CLERK/ - 22-- TOWN OF TAOS, TAOS, NEW MEXICO NOTICE OF MEETING AND PROPOSED ORDINANCE The Taos Town Council of the Town of Taos (Herein the "Town") , New Mexico hereby gives notice of its intention to hold a regular public meeting at 7: 30 P.M. on Wednesday, September 20, 1978, at the Taos Town Hall, Armory Street, Taos, New Mexico. At such meeting the Council will adopt an Ordinance imposing a Supplemental Municipal Gross Receipts Tax. The title and subject matter of such proposed Ordinance is as follows : AN ORDINANCE ENACTED PURSUANT TO SECTTON 14-61-3.1 NMSA 1953 IMPOSING A SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS TAX The following is a general summary of the subject matter contained in Ordinance No. 652: Section 1 sets out the short title of the ordinance as Municipal Supple- mental Gross Receipts Tax Ordinance of the Town of Taos . Section 2 sets out the declaration-of intent and purpose. Section 3 sets out the definitions Section 4 sets out the imposition of Tax rate, and presumption of taxability. Section 5 sets out the deposit of proceeds. Section 6 sets out the separately stating the municipal gross receipts tax. Section 7 sets out the date paym( nt due Section 3 sets out the exemptions. Section 9 sets out the nontaxable transaction certificates , farmers and ranchers statements, and other evidence required to entitle persons to deductions . Section 10 sets out the suspension of the right to use a nontaxable trans- action certificate. Section 11 sets out the dedu^tions. Section 1.2 sets out the severabilit,y Section 13 sets out the bureau as agent for collection, municipality liable on refunds. Section 14 sets out Option A, effective date. r Section 14 sets out Option B, dedication. Section 15 sets out �;he effective date. Section lb sets out the vote of electorate and adoption COMPLETE COPIES OF THIS PROPOSED ORDINANCE ARE ON FILE IN THE OFFICE OF THE TOWN CLERK, MUNICTIPAL OFFICES (ON ARMORY STREET) IN TAOS, NEW MEXICO AND ARE AVAILABLE DURING THE NORMAL AND REGULAR BUSINESS HOURS OF THE TOWN CLERK UPON REQUEST AND PAYMENT OF A REASONABLE CHARGE. WITNESS my hand and the seal of the Town of Taos, New Mexico, this 24th day of August, 1978. (SEAL) TOWN CLERK Legal No. Publish One (1) Time: August 31, 1978. 1 - 7 1 TOWN OF TAOS, TAOS, NEW MEXICO NOTICE OF ADOPTION OF ORDINANCE NO. 652 At a regular meeting held on Wednesday, September 20, 1978 the Taos Town Council approved and adopted Ordinance No. 652 an ordin- ance imposing a supplemental municipal gross receipts tax. The title and subject matter of such ordinance is as follows: ' AN ORDINANCE ENACTED PURSUANT TO SECTION 14-61-3.1 NMSA 1953 IMPOSING A SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS TAX The following is a general summary of the subject matter contained in Ordinance No. 652: Section 1 sets out the short title of the ordinance as Municipal Supple- mental Gross Receipts Tax Ordinance of the Town of Taos. Section 2 sets out the declaration-of intent and purpose. Section 3 sets out the definitions Section 4 sets out the imposition of Tax rate, and presumption of taxability. Section 5 sets out the deposit of proceeds. Section 6 sets out the separately stating the municipal gross receipts -tax. Section 7 sets out the date payment due Section 8 sets out the exemptions. Section 9 sets out the nontaxable transaction certificates, farmers and ranchers statements, and other evidence required to en'UA'tle persons to deductions. Section 10 sets out the suspension of the right to use a nontaxable trans- action certificate. Section 11 sets out the deductions. Section 12 sets out the severability Section 13 sets out the bureau as agent for collection, municipality liable on refunds. r r Section 14 sets out Option A. effective date. Section 14 sets out Option B. dedication. Section 15 sets out the effective date. Section 16 sets out the vote of electorate and adoption COMPLETE COPIES OF THIS PROPOSED ORDINANCE ARE ON FILE IN THE OFFICE OF THE TOWN CLERK, MUNICIPAL OFFICES (Ofl ARMORY STREET) IN TAOS, NEW MEXICO AND ARE AVAILABLE DURING THE NORMAL AND REGULAR BUSINESS HOURS OF THE TOWN CLERK UPON REQUEST AND PAYMENT OF A REASONABLE CHARGE. WITNESS my hand and'.the seal of the Town of Taos, New Mexico, this 21st day of September, 1978 (SEAL) ' 0 C Legal No. 43 Publish One (1) Time September 28,-!1978 f