AN ACT
RELATING TO TAXATION; PROVIDING A GROSS
RECEIPTS TAX DEDUCTION FOR RECEIPTS OF A TRADE-SUPPORT COMPANY LOCATED WITHIN
TWENTY MILES OF A PORT OF ENTRY ON NEW MEXICO'S BORDER WITH MEXICO.
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:
"DEDUCTION--GROSS
RECEIPTS--TRADE-SUPPORT COMPANY IN A BORDER ZONE.--
A. The receipts of a trade-support company may
be deducted from gross receipts if:
(1) the trade-support company first locates in
New Mexico within twenty miles of a port of entry on New Mexico's border with
Mexico on or after July 1, 2003 but before July 1, 2008;
(2) the receipts are received by the company
within a five-year period beginning on the date the trade-support company
locates in New Mexico and the receipts are derived from its business activities
and operations at its border zone location; and
(3) the trade-support company employs at least
two employees in New Mexico.
B. As used in this section:
(1) "employee" means an individual,
other than an individual who:
(a) bears any of the relationships described in
Paragraphs (1) through (8) of 26 U.S.C. Section 152(a) to the employer or, if
the employer is a corporation, to an individual who owns, directly or
indirectly, more than fifty percent in value of the outstanding stock of the
corporation or, if the employer is an entity other than a corporation, to an
individual who owns, directly or indirectly, more than fifty percent of the capital
and profits interests in the entity;
(b) if the employer is an estate or trust, is a
grantor, beneficiary or fiduciary of the estate or trust or is an individual
who bears any of the relationships described in Paragraphs (1) through (8) of
26 U.S.C. Section 152(a) to a grantor, beneficiary or fiduciary of the estate
or trust; or
(c) is a dependent, as that term is described in
26 U.S.C. Section 152(a)(9), of the employer, or, if the taxpayer is a
corporation, of an individual who owns, directly or indirectly, more than fifty
percent in value of the outstanding stock of the corporation or, if the
employer is an entity other than a corporation, an individual who owns,
directly or indirectly, more than fifty percent of the capital and profits
interests in the entity or, if the employer is an estate or trust, of a
grantor, beneficiary or fiduciary of the estate or trust;
(2) "port of entry" means an
international port of entry in New Mexico at which customs services are
provided by the United States customs service; and
(3) "trade-support company" means a
customs brokerage firm or a freight forwarder."
Section 2. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2003.
HB 843
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