45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO TAXATION; EXPANDING ELIGIBILITY FOR THE DEDUCTION FROM GROSS RECEIPTS FOR ADMINISTRATIVE AND ACCOUNTING SERVICES; AMENDING A SECTION OF THE NMSA 1978.

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

Section 1. Section 7-9-69 NMSA 1978 (being Laws 1969, Chapter 144, Section 61, as amended) is amended to read:

"7-9-69. DEDUCTION--GROSS RECEIPTS TAX--ADMINISTRATIVE AND ACCOUNTING SERVICES.--

A. Receipts of a [corporation or an affiliate] business entity for administrative, managerial, accounting and customer services performed by it for [the corporation or] an affiliate upon a nonprofit or cost basis and receipts [from the corporation or] of a business entity from an affiliate for the joint use or sharing of office machines and facilities upon a nonprofit or cost basis may be deducted from gross receipts.

B. For the purposes of this section [an]:

(1) "affiliate" means a [corporation or a limited partnership] business entity that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with [the subject corporation or limited partnership. For purposes of this subsection] another business entity;

(2) "business entity" means a corporation, limited liability company, partnership, limited partnership, limited liability partnership or real estate investment trust, but does not mean an individual or a joint venture; and

(3) "control" means equity ownership [of stock] in a [corporation or of an interest in a limited partnership] business entity that:

[(1)] (a) represents at least fifty percent of the total voting power of that [corporation or limited partnership] business entity; and

[(2)] (b) has a value equal to at least fifty percent of the total [value of the stock] equity of that [corporation or limited partnership] business entity."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2002.