HOUSE BILL 89

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Edward C. Sandoval and David Ulibarri

ENDORSED BY THE MILITARY AND VETERANS' AFFAIRS COMMITTEE

AN ACT

RELATING TO TAXATION; PROVIDING THAT RECEIPTS OF VETERAN-OWNED BUSINESSES FROM WORK PERFORMED FOR THE FEDERAL GOVERNMENT MAY BE DEDUCTED FROM GROSS RECEIPTS.

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--VETERAN-OWNED BUSINESSES.--

          A. The receipts received from the federal government for services conducted pursuant to a contract or subcontract with the federal government may be deducted from the gross receipts of a veteran-owned business.

          B. As used in this section:

                (1) "veteran" means a person who served in the armed forces of the United States and who was discharged or released from service under conditions other than dishonorable; and

                (2) "veteran-owned business" means a business entity that:

                     (a) is authorized to do and is doing business under the laws of the state;

                     (b) maintains its principal place of business in New Mexico; and

                     (c) not less than fifty-one percent is owned by a veteran."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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