SENATE BILL 766

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Michael S. Sanchez

AN ACT

RELATING TO TAXATION; BROADENING THE GROSS RECEIPTS TAX DEDUCTION FOR COMMISSIONS ON SALES OF TANGIBLE PERSONAL PROPERTY.

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

     Section 1. Section 7-9-66 NMSA 1978 (being Laws 1969, Chapter 144, Section 57, as amended) is amended to read:

     "7-9-66. DEDUCTION--GROSS RECEIPTS TAX--COMMISSIONS.--

          A. Receipts derived from commissions on sales of tangible personal property [which are not subject to the gross receipts tax] may be deducted from gross receipts.

          B. Receipts of the owner of a dealer store derived from commissions received for performing the service of selling from the owner's dealer store a principal's tangible personal property may be deducted from gross receipts.

          C. As used in this section, "dealer store" means a merchandise facility open to the public that is owned and operated by a person who contracts with a principal to act as an agent for the sale from that facility of merchandise owned by the principal."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.

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