SENATE BILL 539

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO TAXATION; REQUIRING REMOTE SELLERS TO PAY THE GROSS RECEIPTS TAX.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 7-9-3.3 NMSA 1978 (being Laws 2003, Chapter 272, Section 4) is amended to read:

     "7-9-3.3. DEFINITION--ENGAGING IN BUSINESS.--As used in the Gross Receipts and Compensating Tax Act, "engaging in business" means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit, including selling goods or products delivered directly or indirectly to a customer located in New Mexico, except that:

          A. "engaging in business" does not include having a worldwide web site as a third-party content provider on a computer physically located in New Mexico but owned by another nonaffiliated person; and

          B. "engaging in business" does not include using a nonaffiliated third-party call center to accept and process telephone or electronic orders of tangible personal property or licenses primarily from non-New Mexico buyers, which orders are forwarded to a location outside New Mexico for filling, or to provide services primarily to non-New Mexico customers."

     SECTION 2. REPEAL.--Section 7-9-13.1 NMSA 1978 (being Laws 1989, Chapter 262, Section 4) is repealed.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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