44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR CERTAIN SOFTWARE SERVICES AND BUSINESS SERVICES DELIVERED VIA THE INTERNET; ENACTING A NEW SECTION OF THE GROSS RECEIPTS AND COMPENSATING TAX ACT.

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

Section 1. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

"[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS TAX--SALE OF SOFTWARE SERVICES AND COMPUTER BUSINESS SERVICES.--

A. As used in this section:

(1) "business services" means services used in the normal course of business, including accounting, word processing, data entry, research and consulting; and

(2) "software services" means the development, integration or support of computer software used for business purposes.

B. A deduction from gross receipts may be made for receipts from the sale of software services and business services:

(1) of which at least ninety percent of receipts are for service performed on, or delivered to the purchaser through, an on-line telecommunications service other than voice telephony; and

(2) that originate from a place of business located outside the boundaries of incorporated municipalities of more than forty thousand population according to the most recent federal decennial census."