SENATE BILL 136

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO TAXATION; REQUIRING THE RECEIPT OF A PROFESSIONAL SERVICE TO BE REPORTED FROM THE JURISDICTION WHERE THE ULTIMATE CONSUMER IS LOCATED; REQUIRING THE RECEIPT OF AN AIR AMBULANCE SERVICE TO BE REPORTED FROM THE JURISDICTION WHERE THE PERSON BEING TRANSPORTED IS PICKED UP.

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

     SECTION 1. Section 7-1-14 NMSA 1978 (being Laws 1969, Chapter 145, Section 1, as amended) is amended to read:

     "7-1-14. SECRETARY MAY DETERMINE WHERE CERTAIN GROSS RECEIPTS ARE TO BE REPORTED--PLACE OF BUSINESS FOR CONSTRUCTION PROJECTS AND CERTAIN REAL PROPERTY SALES--LOCATION OF SALE OF PROFESSIONAL SERVICES--LOCATION OF SALE OF AIR AMBULANCE SERVICES.--

          A. By regulation, the secretary may require any person maintaining one or more places of business to report the person's taxable gross receipts and deductions for each municipality or county or area within an Indian reservation or pueblo grant in which the person maintains a place of business.           B. For persons engaged in the construction business, the place where the construction project is performed is a "place of business", and all receipts from that project are to be reported from that place of business.

          C. The secretary may, by regulation, also require any person maintaining a business outside the boundaries of a municipality on land owned by that municipality to report the person's taxable gross receipts for that municipality.

          D. For a person engaged in the business of selling real estate, the location of the real property sold is the "place of business", and all receipts from that sale are to be reported from that place of business.

          E. A receipt for the sale of a professional service shall be reported from the jurisdiction where the service is delivered to the ultimate consumer of the service. If the jurisdiction cannot be determined, the jurisdiction shall be reasonably approximated.

          F. A receipt for the sale of an air ambulance service shall be reported from the jurisdiction where the sick or injured person being transported is picked up by an ambulance.

          G. As used in this section:

                (1) "air ambulance" means an air transportation vehicle that is designed and used for the transportation of sick or injured persons by air; and

                (2) "professional services" means the services of architects, archaeologists, engineers, surveyors, landscape architects, medical arts practitioners, scientists, management and systems analysts, certified public accountants, registered public accountants, lawyers, psychologists, planners, researchers, construction managers and other persons or businesses providing similar professional services."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2016.

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