Kudos to Albuquerque Business First for listing “10 of the most unusual exemptions” to the state’s gross receipts tax (GRT). Fuel for small planes, website hosting, commission for travel agents — it’s curious, what economic activities legislators choose to award with special treatment.
But the Foundation has its own list of bizarre GRT perks. We’d add a few to ABF’s list. Deductions are applied to receipts from:
* professional boxing, wrestling, and martial arts contests
* leases on manufactured homes (but only for durations of longer than one month)
* research, development, testing, and evaluation services for the U.S. Air Force’s troubled Operationally Responsive Space Program
* sales by “a qualified contractor” of “directed energy and satellite-related inputs”
* the sale and installation of solar-energy systems (of course)
* the sale of uranium hexafluoride from enriching uranium
The GRT is a messy monstrosity, and it needs serious simplification — and reduction. But as long as legislators and governors seek votes for their support for “creating jobs,” the GRT code will remain riddled with exemptions and deductions of dubious justification.