45th legislature - STATE OF NEW MEXICO - second session, 2002
RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS DEDUCTION FOR COMMISSIONS OF DIRECT SELLERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-9-66 NMSA 1978 (being Laws 1969, Chapter 144, Section 57, as amended) is amended to read:
"7-9-66. DEDUCTION--GROSS RECEIPTS TAX--COMMISSIONS.--
A. Receipts derived from commissions on sales of
tangible personal property [which] that are not subject to the
gross receipts tax may be deducted from gross receipts.
B. Receipts of the owner of a dealer store derived from commissions received for performing the service of selling from the owner's dealer store a principal's tangible personal property may be deducted from gross receipts.
C. Receipts of a direct seller derived from commissions may be deducted from gross receipts.
[C.] D. As used in this section:
(1) "dealer store" means a merchandise facility open to the public that is owned and operated by a person who contracts with a principal to act as an agent for the sale from that facility of merchandise owned by the principal; and
(2) "direct seller" has the meaning given in Section 3508 of the Internal Revenue Code of 1986, as amended."
Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2002.