SENATE BILL 163

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

John M. Sapien

AN ACT

RELATING TO TAXATION; PROVIDING THAT RECEIPTS OF VETERAN-OWNED BUSINESSES FROM WORK PERFORMED FOR THE FEDERAL GOVERNMENT ARE EXEMPT FROM THE GROSS RECEIPTS TAX.

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] EXEMPTION--GROSS RECEIPTS TAX--VETERAN-OWNED BUSINESSES.--

          A. Exempted from the gross receipts tax are the receipts of a veteran-owned business that are received from the federal government for services conducted pursuant to a contract or subcontract with the federal government.

          B. As used in this section:

                (1) "veteran" means a person who served in the active military, naval or air service and who was discharged or released from service under conditions other than dishonorable; and

                (2) "veteran-owned business" means a business entity of which not less than fifty-one percent is owned by one or more veterans or, in the case of a publicly owned business, of which not less than fifty-one percent of the stock is owned by one or more veterans; and of which the administration, management, daily operations and long-term decision-making are controlled by one or more veterans."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.

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