0001| SENATE BILL 204
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| PAULINE B. EISENSTADT
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION
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0012| FOR RECEIPTS FROM ADMINISTRATIVE AND ACCOUNTING SERVICES
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0013| PROVIDED TO AFFILIATED BUSINESS ENTITIES.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 7-9-69 NMSA 1978 (being Laws 1969,
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0017| Chapter 144, Section 61, as amended) is amended to read:
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0018| "7-9-69. DEDUCTION--GROSS RECEIPTS TAX--ADMINISTRATIVE
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0019| AND ACCOUNTING SERVICES.--
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0020| A. Receipts of a corporation for administrative,
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0021| managerial and accounting services performed by it for an
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0022| affiliated corporation or affiliated limited partnership
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0023| upon a nonprofit or cost basis and receipts from an affiliated
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0024| corporation or affiliated limited partnership for the joint
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0025| use or sharing of office machines and facilities upon a
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0001| nonprofit or cost basis may be deducted from gross receipts.
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0002| B. For the purposes of this section:
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0003| (1) "affiliated limited partnership" means a
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0004| limited partnership that directly or indirectly through one or
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0005| more intermediaries controls, is controlled by or is under
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0006| common control with the subject corporation. For purposes of
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0007| this paragraph, "control" means ownership of an interest in a
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0008| limited partnership that:
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0009| (a) represents at least fifty percent
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0010| of the total voting power of that corporation; and
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0011| (b) has a value equal to at least
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0012| fifty percent of the total value of that limited partnership;
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0013| and (2) "affiliated corporation" means a
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0014| corporation that directly or indirectly through one or more
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0015| intermediaries controls, is controlled by or is under common
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0016| control with the subject corporation. For the purposes of
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0017| this [subsection] paragraph, "control" means ownership of
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0018| stock in a corporation [which] that:
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0019| [(1)] (a) represents at least fifty
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0020| percent of the total voting power of that corporation; and
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0021| [(2)] (b) has a value equal to at
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0022| least fifty percent of the total value of the stock of that
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0023| corporation."
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0024| Section 2. APPLICABILITY.--The provisions of this act
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0025| apply to receipts received after July 1, 1998.
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0001| Section 3. EFFECTIVE DATE.--The effective date of the
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0002| provisions of this act is July 1, 1998.
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0003|
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