RELATING TO TAXATION; EXTENDING THE PERIOD FOR APPLICATION OF CERTAIN PROVISIONS FOR APPORTIONMENT OF BUSINESS INCOME FOR CORPORATE INCOME TAX PURPOSES BY TAXPAYERS WHOSE PRINCIPAL BUSINESS ACTIVITY IS MANUFACTURING.

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

Section 1. Section 7-4-10 NMSA 1978 (being Laws 1993, Chapter 153, Section 1) is repealed and a new Section 7-4-10 NMSA 1978 is enacted to read:

"7-4-10. APPORTIONMENT OF BUSINESS INCOME.--All business income shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor and the denominator of which is three."

Section 2. REPEAL.--Laws 1993, Chapter 153, Section 2 is repealed.

Section 3. APPLICABILITY.--The provisions of Section 1 of this act apply to taxable years beginning on or after January 1, 2003.

Section 4. EFFECTIVE DATE.--

A. The effective date of the provisions of Section 1 of this act is January 1, 2003.

B. The effective date of the provisions of Section 2 of this act is July 1, 1999.