New Mexico 2025 Regular Session

New Mexico Senate Bill SB141 Compare Versions

Only one version of the bill is available at this time.

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28	28	SENATE BILL 141
29	29	57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
30	30	INTRODUCED BY
31	31	Peter Wirth
32	32	AN ACT
33	33	RELATING TO TAXATION; INCREASING THE CORPORATE INCOME TAX RATE;
34	34	AMENDING THE NEXUS REQUIREMENT FOR A PERSON WHO LACKS PHYSICAL
35	35	PRESENCE IN NEW MEXICO PURSUANT TO THE GROSS RECEIPTS AND
36	36	COMPENSATING TAX ACT; PROVIDING A GROSS RECEIPTS TAX DEDUCTION
37	37	FOR TAXPAYERS THAT DID NOT CLAIM A GROSS RECEIPTS TAX CREDIT,
38	38	DEDUCTION OR EXEMPTION IN THE PREVIOUS CALENDAR YEAR; MAKING AN
39	39	APPROPRIATION.
40	40	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
41	41	SECTION 1. Section 7-2A-5 NMSA 1978 (being Laws 1981,
42	42	Chapter 37, Section 38, as amended) is amended to read:
43	43	"7-2A-5. CORPORATE INCOME TAX RATES.--The corporate
44	44	income tax imposed on corporations by Section 7-2A-3 NMSA 1978
45	45	shall be [five] six and nine-tenths percent of taxable income."
46	46	SECTION 2. Section 7-9-3.3 NMSA 1978 (being Laws 2003,
47	47	.229199.1 underscored material = new
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74	74	Chapter 272, Section 4, as amended) is amended to read:
75	75	"7-9-3.3. DEFINITION--ENGAGING IN BUSINESS.--As used in
76	76	the Gross Receipts and Compensating Tax Act, "engaging in
77	77	business" means carrying on or causing to be carried on any
78	78	activity with the purpose of direct or indirect benefit. For a
79	79	person who lacks physical presence in this state, including a
80	80	marketplace provider, "engaging in business" means having, in
81	81	the previous calendar year, total [taxable ] gross receipts from
82	82	sales, leases and licenses of tangible personal property, sales
83	83	of licenses and sales of services and licenses for use of real
84	84	property sourced to this state pursuant to Section 7-1-14 NMSA
85	85	1978, of at least one hundred thousand dollars ($100,000)."
86	86	SECTION 3. A new section of the Gross Receipts and
87	87	Compensating Tax Act is enacted to read:
88	88	"[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--TAXPAYERS THAT
89	89	DID NOT CLAIM A CREDIT, DEDUCTION OR EXEMPTION IN THE PREVIOUS
90	90	CALENDAR YEAR.--
91	91	A. Up to one hundred thousand dollars ($100,000)
92	92	during any twelve-month period may be deducted from the gross
93	93	receipts of a taxpayer that did not claim a credit, deduction
94	94	or exemption pursuant to the Gross Receipts and Compensating
95	95	Tax Act in the previous calendar year; provided that the
96	96	taxpayer was engaging in business in each month of the previous
97	97	calendar year.
98	98	B. A company that enters into a restructuring to
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127	127	create subsidiaries for the purpose of claiming the deduction
128	128	provided by this section for itself and each subsidiary shall
129	129	only be allowed to claim the deduction as if the company and
130	130	its subsidiaries are a single company.
131	131	C. A taxpayer allowed a deduction pursuant to this
132	132	section shall report the amount of the deduction separately in
133	133	a manner required by the department.
134	134	D. The deduction provided by this section shall be
135	135	included in the tax expenditure budget pursuant to Section
136	136	7-1-84 NMSA 1978, including the total annual aggregate cost of
137	137	the deduction."
138	138	SECTION 4. APPROPRIATION.--One hundred thousand dollars
139	139	($100,000) is appropriated from the general fund to the
140	140	taxation and revenue department for expenditure in fiscal years
141	141	2025 and 2026 to contract for services related to administering
142	142	the provisions of Section 3 of this act, including enhancing
143	143	the department's tax administration software system. Any
144	144	unexpended or unencumbered balance remaining at the end of
145	145	fiscal year 2026 shall revert to the general fund.
146	146	SECTION 5. APPLICABILITY.--The provisions of Section 1 of
147	147	this act apply to taxable years beginning on or after January
148	148	1, 2026.
149	149	SECTION 6. EFFECTIVE DATE.--The effective date of the
150	150	provisions of Sections 1 through 3 of this act is January 1,
151	151	2026.
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