45th legislature - STATE OF NEW MEXICO - first session, 2001

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.

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. The receipts of an eligible software company from the sale of software services that are performed in a qualified area may be deducted from gross receipts.

B. As used in this section:

(1) "eligible software company" means a taxpayer whose primary business in New Mexico is providing software services and who had no business location in New Mexico other than in a qualified area during the period for which a deduction under this section is sought;

(2) "qualified area" means an area within New Mexico outside the boundaries of incorporated municipalities with a population of more than forty thousand according to the most recent federal decennial census; and

(3) "software services" means the development of computer programming and the creation of internet web sites."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.