SENATE BILL 174

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

INTRODUCED BY

Leo Jaramillo and Kristina Ortez

 

 

 

 

 

AN ACT

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR THE SALE OF LEGAL SERVICES TO RECOVER COMPENSATION PURSUANT TO THE FEDERAL HERMIT'S PEAK/CALF CANYON FIRE ASSISTANCE ACT.

 

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] DEDUCTION--GROSS RECEIPTS--LEGAL SERVICES TO RECOVER COMPENSATION FROM THE FEDERAL HERMIT'S PEAK/CALF CANYON FIRE ASSISTANCE ACT.--

          A. Gross receipts from the sale of legal services rendered to and at the request of a person eligible to receive compensation pursuant to the federal Hermit's Peak/Calf Canyon Fire Assistance Act may be deducted from gross receipts; provided that the legal services are directly related to recovering the compensation.

          B. As used in this section, "legal services" means services performed by a licensed attorney or under the supervision of a licensed attorney for a client, regardless of the attorney's form of business entity or whether the services are prepaid, including legal representation before courts or administrative agencies; drafting legal documents, such as contracts or patent applications; legal research; advising and counseling; arbitration; mediation; and notary public and other ancillary legal services performed for a client in conjunction with and under the supervision of a licensed attorney. "Legal services" does not include lobbying or government relations services, title insurance agent services, licensing or selling legal software or legal document templates, insurance investigation services or any legal representation involving financial crimes or tax evasion in New Mexico."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2024.

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