0001|                               AN ACT
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0002| RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR
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0003| RECEIPTS FROM ADMINISTRATIVE AND ACCOUNTING SERVICES PROVIDED TO
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0004| AFFILIATED BUSINESS ENTITIES.
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0005| 
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0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:          Section 1.  Section 7-9-69 NMSA 1978 (being Laws 1969, Chapter 144, Section 61, as
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0007| amended) is amended to read:
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0008|      "7-9-69.  DEDUCTION--GROSS RECEIPTS TAX--ADMINISTRATIVE AND
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0009| ACCOUNTING SERVICES.--
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0010|           A.  Receipts of a corporation for administrative, managerial and accounting
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0011| services performed by it for an affiliated corporation or affiliated limited partnership upon a
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0012| nonprofit or cost basis and receipts from an affiliated corporation or affiliated limited
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0013| partnership for the joint use or sharing of office machines and facilities upon a nonprofit or cost
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0014| basis may be deducted from gross receipts.
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0015|           B.  For the purposes of this section:
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0016|                (1)  "affiliated limited partnership" means a limited partnership that
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0017| directly or indirectly through one or more intermediaries controls, is controlled by or is under
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0018| common control with the subject corporation.  For purposes of this paragraph, "control" means
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0019| ownership of an interest in a limited partnership that:
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0020|                     (a)  represents at least fifty percent of the total voting power of that
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0021| corporation; and
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0022|                     (b)  has a value equal to at least fifty percent of the total value of
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0023| that limited partnership; and
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0024|                (2)  "affiliated corporation" means a corporation that directly or indirectly
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0025| through one or more intermediaries controls, is controlled by or is under common control with
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0001| the subject corporation.  For the purposes of this paragraph, "control" means ownership of stock
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0002| in a corporation that:
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0003|                     (a)  represents at least fifty percent of the total voting power of that
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0004| corporation; and
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0005|                     (b)  has a value equal to at least fifty 
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0006| percent of the total value of the stock of that corporation."
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0007|      Section 2.  APPLICABILITY.--The provisions of this act apply to receipts received after
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0008| July 1, 1996.
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0009|      Section 3.  EFFECTIVE DATE.--The effective date of the provisions of this act is
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0010|                                                               July 1, 1996.                         
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0011|                                                               
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