SENATE BILL 90

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Linda M. L pez

 

 

 

 

 

AN ACT

RELATING TO TAXATION; ENACTING THE FIREARM AND AMMUNITION TAX ACT TO IMPOSE A TAX ON THE SALE OF FIREARMS AND AMMUNITION; DISTRIBUTING THE REVENUE FROM THE TAX TO THE CRIME VICTIMS REPARATION FUND AND A NEW FAMILY REPRESENTATION AND ADVOCACY FUND; CREATING THE FAMILY REPRESENTATION AND ADVOCACY FUND.

 

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

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 6 of this act may be cited as the "Firearm and Ammunition Tax Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Firearm and Ammunition Tax Act:

          A. "ammunition" means ammunition or cartridge cases, primers, bullets or propellent powder designed for use in any firearm;

          B. "disclosed agency" means a person receiving money from a third party on behalf of another if the person receiving the money, or the person on whose behalf the money is received, disclosed the relationship to the third party from whom the person receives money, or if the third party otherwise has actual knowledge that the person to whom the money is paid receives the money on behalf of another;

          C. "engaging in business" means carrying on or causing to be carried on the selling of firearms, firearm precursor parts or ammunition with the purpose of direct or indirect benefit;

          D. "firearm" means a weapon that will or is designed to or may readily be converted to expel a projectile by the action of an explosive and includes the frame or receiver of any such weapon, a firearm muffler or firearm silencer or a firearm precursor part;

          E. "firearm precursor part" means any forging, casting, printing, extrusion, machined body or similar article that has reached a stage in manufacture where it may readily be completed, assembled or converted to be used as the frame or receiver of a functional firearm or that is marketed or sold to the public to become or be used as the frame or receiver of a functional firearm once completed, assembled or converted;

          F. "gross receipts" means the total amount of money or the value of other consideration received from selling firearms or ammunition in New Mexico or from leasing or licensing firearms or ammunition employed in New Mexico. In an exchange in which the money or other consideration received does not represent the value of the property or service exchanged, "gross receipts" means the reasonable value of the property or service exchanged. "Gross receipts":

                (1) includes:

                     (a) any receipts from sales of firearms or ammunition handled on consignment; and

                     (b) receipts collected by a marketplace provider engaging in business in the state from sales, leases and licenses of firearms or ammunition that are sourced to this state and are facilitated by the marketplace provider on behalf of marketplace sellers, regardless of whether the marketplace sellers are engaging in business in the state; and

                (2) excludes:

                     (a) cash discounts allowed and taken;

                     (b) New Mexico gross receipts tax payable on transactions for the reporting period;

                     (c) taxes imposed pursuant to the provisions of any local option gross receipts tax that is payable on transactions for the reporting period;

                     (d) any gross receipts or sales taxes imposed by an Indian nation, tribe or pueblo; provided that the tax is approved, if approval is required by federal law or regulation, by the United States secretary of the interior; and provided further that the gross receipts or sales tax imposed by the Indian nation, tribe or pueblo provides a reciprocal exclusion for gross receipts, sales or gross receipts-based excise taxes imposed by the state or its political subdivisions;

                     (e) any type of time-price differential; and

                     (f) amounts received solely on behalf of another in a disclosed agency capacity;

          G. "marketplace provider" means a person who facilitates the sale, lease or license of a firearm or ammunition on a marketplace seller's behalf, or on the marketplace provider's own behalf:

                (1) by listing or advertising the sale, lease or license, by any means, whether physical or electronic, including by catalog, internet website or television or radio broadcast; and

                (2) either directly or indirectly, through agreements or arrangements with third parties collecting payment from the customer and transmitting that payment to the seller, regardless of whether the marketplace provider receives compensation or other consideration in exchange for the marketplace provider's services;

          H. "marketplace seller" means a person who sells, leases or licenses firearms or ammunition through a marketplace provider;

          I. "peace officer" means any full-time salaried or certified part-time salaried officer who by virtue of office or public employment is vested by law with the duty to maintain the public peace; and

          J. "person" means:

                (1) an individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, limited liability company, limited liability partnership, joint venture, syndicate or other entity, including any gas, water or electric utility owned or operated by a county, municipality or other political subdivision of the state; or

                (2) a national, federal, state, Indian or other governmental unit or subdivision, or an agency, department or instrumentality of any of the foregoing.

     SECTION 3. [NEW MATERIAL] FIREARM AND AMMUNITION TAX.--

          A. An excise tax is imposed on a person engaging in the business of selling, leasing or licensing firearms or ammunition in New Mexico; provided that, in the case of a sale, the sale is made for a purpose other than resale in the regular course of business. The tax imposed by this section may be referred to as the "firearm and ammunition tax".

          B. The rate of the firearm and ammunition tax is eleven percent of the gross receipts from the sale of a firearm or ammunition.

     SECTION 4. [NEW MATERIAL] CERTAIN CONTRACT SALES.--When the sale of a firearm or ammunition is made under any type of charge, conditional or time-sales contract or the leasing of a firearm or ammunition is made under a leasing contract, the seller or lessor may elect to treat all receipts, excluding any type of time-price differential, under such contracts as gross receipts as and when the payments are actually received. If the seller or lessor transfers the seller's or lessor's interest in any such contract to a third person, the seller or lessor shall pay the firearm and ammunition tax upon the full sale or leasing contract amount, excluding any type of time- price differential.

     SECTION 5. [NEW MATERIAL] EXEMPTIONS.--

          A. Exempted from the firearm and ammunition tax is the sale of a firearm or ammunition to an active or retired peace officer or law enforcement agency that employs a peace officer.

          B. Exempted from the firearm and ammunition tax is the isolated or occasional sale of or leasing of a firearm or ammunition by a person who is neither regularly engaged nor holding the person's self out as engaged in the business of selling or leasing firearms or ammunition.

     SECTION 6. [NEW MATERIAL] DATE PAYMENT DUE.--The firearm and ammunition tax is to be paid on or before the twenty-fifth day of the month following the month in which the taxable sale occurs.

     SECTION 7. Section 7-1-2 NMSA 1978 (being Laws 1965, Chapter 248, Section 2, as amended) is amended to read:

     "7-1-2. APPLICABILITY.--The Tax Administration Act applies to and governs:

          A. the administration and enforcement of the following taxes or tax acts as they now exist or may hereafter be amended:

                (1) Income Tax Act;

                (2) Withholding Tax Act;

                (3) Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act;

                (4) Gross Receipts and Compensating Tax Act, Interstate Telecommunications Gross Receipts Tax Act and Leased Vehicle Gross Receipts Tax Act;

                (5) Liquor Excise Tax Act;

                (6) Local Liquor Excise Tax Act;

                (7) any municipal local option gross receipts tax or municipal compensating tax;

                (8) any county local option gross receipts tax or county compensating tax;

                (9) Special Fuels Supplier Tax Act;

                (10) Gasoline Tax Act;

                (11) petroleum products loading fee, which fee shall be considered a tax for the purpose of the Tax Administration Act;

                (12) Alternative Fuel Tax Act;

                (13) Cigarette Tax Act;

                (14) Estate Tax Act;

                (15) Railroad Car Company Tax Act;

                (16) Investment Credit Act, rural job tax credit, Laboratory Partnership with Small Business Tax Credit Act, Technology Jobs and Research and Development Tax Credit Act, Film Production Tax Credit Act, Affordable Housing Tax Credit Act and high-wage jobs tax credit;

                (17) Corporate Income and Franchise Tax Act;

                (18) Uniform Division of Income for Tax Purposes Act;

                (19) Multistate Tax Compact;

                (20) Tobacco Products Tax Act;

                (21) the telecommunications relay service surcharge imposed by Section 63-9F-11 NMSA 1978, which surcharge shall be considered a tax for the purposes of the Tax Administration Act;

                (22) the Insurance Premium Tax Act;

                (23) the Health Care Quality Surcharge Act; [and]

                (24) the Cannabis Tax Act; and

                (25) the Firearm and Ammunition Tax Act;

          B. the administration and enforcement of the following taxes, surtaxes, advanced payments or tax acts as they now exist or may hereafter be amended:

                (1) Resources Excise Tax Act;

                (2) Severance Tax Act;

                (3) any severance surtax;

                (4) Oil and Gas Severance Tax Act;

                (5) Oil and Gas Conservation Tax Act;

                (6) Oil and Gas Emergency School Tax Act;

                (7) Oil and Gas Ad Valorem Production Tax Act;

                (8) Natural Gas Processors Tax Act;

                (9) Oil and Gas Production Equipment Ad Valorem Tax Act;

                (10) Copper Production Ad Valorem Tax Act;