0001|                           SENATE BILL 204
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                        PAULINE B. EISENSTADT
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION
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0012|     FOR RECEIPTS FROM ADMINISTRATIVE AND ACCOUNTING SERVICES
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0013|     PROVIDED TO AFFILIATED BUSINESS ENTITIES.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  Section 7-9-69 NMSA 1978 (being Laws 1969,
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0017|     Chapter 144, Section 61, as amended) is amended to read:
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0018|          "7-9-69.  DEDUCTION--GROSS RECEIPTS TAX--ADMINISTRATIVE
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0019|     AND ACCOUNTING SERVICES.--
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0020|               A.  Receipts of a corporation for administrative,
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0021|     managerial and accounting services performed by it for an
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0022|     affiliated corporation |or affiliated limited partnership|
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0023|     upon a nonprofit or cost basis and receipts from an affiliated
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0024|     corporation |or affiliated limited partnership| for the joint
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0025|     use or sharing of office machines and facilities upon a
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0001|     nonprofit or cost basis may be deducted from gross receipts.
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0002|               B.  For the purposes of this section:
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0003|                    |(1)  "affiliated limited partnership" means a
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0004|     limited partnership that directly or indirectly through one or
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0005|     more intermediaries controls, is controlled by or is under
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0006|     common control with the subject corporation.  For purposes of
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0007|     this paragraph, "control" means ownership of an interest in a
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0008|     limited partnership that:|
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0009|                         |(a)  represents at least fifty percent
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0010|     of the total voting power of that corporation; and|
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0011|                         |(b)  has a value equal to at least
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0012|     fifty percent of the total value of that limited partnership;
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0013|     and|                |(2)|  "affiliated corporation" means a
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0014|     corporation that directly or indirectly through one or more
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0015|     intermediaries controls, is controlled by or is under common
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0016|     control with the subject corporation.  For the purposes of
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0017|     this ~[subsection]~ |paragraph|, "control" means ownership of
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0018|     stock in a corporation ~[which]~ |that|:
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0019|                         ~[(1)]~ |(a)|  represents at least fifty
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0020|     percent of the total voting power of that corporation; and
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0021|                         ~[(2)]~ |(b)|  has a value equal to at
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0022|     least fifty percent of the total value of the stock of that
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0023|     corporation."
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0024|          Section 2.  APPLICABILITY.--The provisions of this act
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0025|     apply to receipts received after July 1, 1998.
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0001|          Section 3.  EFFECTIVE DATE.--The effective date of the
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0002|     provisions of this act is July 1, 1998.
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0003|                              
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