44th legislature - STATE OF NEW MEXICO - 2nd special session, 2000

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR CERTAIN SOFTWARE SERVICES; ENACTING A NEW SECTION OF THE GROSS RECEIPTS AND COMPENSATING TAX ACT; DECLARING AN EMERGENCY.

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 TAX--SALE OF SOFTWARE SERVICES.--

A. As used in this section, "software services" means the development of computer programming and the creation of internet web sites.

B. A deduction from gross receipts may be made for receipts from the sale of software services that are performed at a place of business located outside the boundaries of incorporated municipalities of more than forty thousand population according to the most recent federal decennial census."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2000.

Section 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.