SKI AREA EQUIPMENT SALE GROSS RECEIPTS

SB0212

SENATE BILL 212

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Carrie Hamblen

AN ACT

RELATING TO TAXATION; CREATING GROSS RECEIPTS TAX EXEMPTIONS
FOR THE SALE OF QUALIFIED SKI AREA EQUIPMENT AND FOR THE
IMPROVEMENT OR CONSTRUCTION OF A BUILDING ON A SKI AREA;
AMENDING CERTAIN DEDUCTIONS FOR PERSONS ENGAGED IN THE
CONSTRUCTION BUSINESS.

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

SECTION 1.
A new section of the Gross Receipts and
Compensating Tax Act is enacted to read:

"[
NEW MATERIAL
] EXEMPTION--GROSS RECEIPTS TAX FOR SALE OF
QUALIFIED SKI AREA EQUIPMENT--IMPROVEMENT OR CONSTRUCTION OF A
BUILDING ON A SKI AREA.--

A. Exempted from the state gross receipts tax, but
not any local option gross receipts tax, are receipts of a
person engaged in the construction business for the sale of
qualified ski area equipment to a ski area operator; provided
that the qualified ski area equipment shall be used exclusively
in the ski area operator's ski area.

B. Exempted from the state gross receipts tax, but
not any local option gross receipts tax, are receipts of a
person engaged in the construction business for the sale of a
construction project that is the improvement or construction of
a building located on a ski area operated by a ski area
operator.

C. A taxpayer allowed an exemption pursuant to this
section shall report the amount of the exemption to the
department in a manner required by the department.

D. The exemptions provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978, including the annual aggregate cost of the
exemption.

E. As used in this section:

(1) "qualified ski area equipment" means heavy
equipment used on a ski area, such as a ski run or trail
groomer, bulldozer, front-end loader, skid steer generally used
to prepare or improve a ski run or trail or snowmaking system;

(2) "ski area" means the property owned,
permitted, leased or under the control of a ski area operator
and administered as a single enterprise within the state; and

(3) "ski area operator" means any person,
partnership, corporation or other commercial entity and its
agents, officers, employees or representatives that has
operational responsibility for a ski area or ski lift."

SECTION 2.
Section 7-9-5 NMSA 1978 (being Laws 1966,
Chapter 47, Section 5, as amended) is amended to read:

"7-9-5. PRESUMPTION OF TAXABILITY.--

A. To prevent evasion of the gross receipts tax and
to aid in its administration, it is presumed that all receipts
of a person engaging in business are subject to the gross
receipts tax.
Except as provided in Section 1 of this 2026
act
, a person engaged solely in transactions specifically
exempt under the provisions of the Gross Receipts and
Compensating Tax Act shall not be required to register or file
a return under that act.

B. If receipts from nontaxable charges for mobile
telecommunications services are aggregated with and not
separately stated from taxable charges for mobile
telecommunications services, the charges for nontaxable mobile
telecommunications services shall be subject to gross receipts
tax unless the home service provider can reasonably identify
nontaxable charges in its books and records that are kept in
the regular course of business. For the purposes of this
subsection, "charges for mobile telecommunications services",
"home service provider" and "mobile telecommunications
services" have the meanings given in the federal Mobile
Telecommunications Sourcing Act.

C. A marketplace provider engaging in business in
this state is not liable for amounts of gross receipts tax
collected incorrectly due to the marketplace provider
reasonably relying on erroneous information provided by the
seller."

SECTION 3.
Section 7-9-51 NMSA 1978 (being Laws 1969,
Chapter 144, Section 41, as amended) is amended to read:

"7-9-51. DEDUCTION--GROSS RECEIPTS TAX--SALE OF
CONSTRUCTION MATERIAL TO PERSONS ENGAGED IN THE CONSTRUCTION
BUSINESS.--

A. Receipts from selling construction material 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 seller or provides alternative
evidence pursuant to Section 7-9-43 NMSA 1978.

B. The buyer must incorporate the construction
material as:

(1) an ingredient or component part of a
construction project that is subject to the gross receipts tax
upon its completion or upon the completion of the overall
construction project of which it is a part;

(2) an ingredient or component part of a
construction project that is subject to the gross receipts tax
upon the sale in the ordinary course of business of the real
property upon which it was constructed; [
or
]

(3) an ingredient or component part of a
construction project that is located on the tribal territory of
an Indian nation, tribe or pueblo;
or

(4) an ingredient or component part of a
construction project that is sold to a ski area operator for
which the exemption pursuant to Section 1 of this 2026 act may
be claimed.

C. As used in this section:

(1) "ski area" means the property owned,
permitted, leased or under the control of a ski area operator
and administered as a single enterprise within the state; and

(2) "ski area operator" means any person,
partnership, corporation or other commercial entity and its
agents, officers, employees or representatives that has
operational responsibility for a ski area or ski lift.
"

SECTION 4.
Section 7-9-52 NMSA 1978 (being Laws 1969,
Chapter 144, Section 42, as amended) is amended to read:

"7-9-52. DEDUCTION--GROSS RECEIPTS TAX--SALE OF
CONSTRUCTION SERVICES AND CONSTRUCTION-RELATED SERVICES TO
PERSONS ENGAGED IN THE CONSTRUCTION BUSINESS.--

A. Receipts from selling a construction service or
a construction-related 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 performing the construction service
or a construction-related service or provides alternative
evidence pursuant to Section 7-9-43 NMSA 1978.

B. The buyer shall have the construction services
or construction-related services directly contracted for or
billed to:

(1) a construction project that is subject to
the gross receipts tax upon its completion or upon the
completion of the overall construction project of which it is a
part;

(2) a construction project that is subject to
the gross receipts tax upon the sale in the ordinary course of
business of the real property upon which it was constructed;
[
or
]

(3) a construction project that is located on
the tribal territory of an Indian nation, tribe or pueblo;
or

(4) a construction project that is sold to a
ski area operator for which the exemption pursuant to Section 1
of this 2026 act may be claimed.

C. As used in this section:

(1) "ski area" means the property owned,
permitted, leased or under the control of a ski area operator
and administered as a single enterprise within the state; and

(2) "ski area operator" means any person,
partnership, corporation or other commercial entity and its
agents, officers, employees or representatives that has
operational responsibility for a ski area or ski lift.
"

SECTION 5.
EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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