SENATE BILL 309

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO TAXATION; REQUIRING THAT THE RECEIPT FOR THE SALE OF A PROFESSIONAL SERVICE OR A BUSINESS SERVICE BE REPORTED FROM THE JURISDICTION WHERE THE SERVICE IS DELIVERED; REQUIRING THAT THE RECEIPT FOR THE SALE OF A LOBBYING SERVICE BE REPORTED FROM THE JURISDICTION WHERE THE ULTIMATE CONSUMER IS DOMICILED,

IF THE ULTIMATE CONSUMER IS AN INDIVIDUAL, OR WHERE IT HAS ITS PRINCIPAL PLACE OF BUSINESS IN THIS STATE, IF THE ULTIMATE CONSUMER IS A BUSINESS.

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

     SECTION 1. Section 7-1-14 NMSA 1978 (being Laws 1969, Chapter 145, Section 1, as amended) is amended to read:

     "7-1-14. SECRETARY MAY DETERMINE WHERE CERTAIN GROSS RECEIPTS ARE TO BE REPORTED--PLACE OF BUSINESS FOR CONSTRUCTION PROJECTS AND CERTAIN REAL PROPERTY SALES--LOCATION OF SALE OF A PROFESSIONAL SERVICE, BUSINESS SERVICE OR LOBBYING SERVICE.--

          A. By regulation, the secretary may require any person maintaining one or more places of business to report the person's taxable gross receipts and deductions for each municipality or county or area within an Indian reservation or pueblo grant in which the person maintains a place of business.           B. For persons engaged in the construction business, the place where the construction project is performed is a "place of business", and all receipts from that project are to be reported from that place of business.

          C. The secretary may, by regulation, also require any person maintaining a business outside the boundaries of a municipality on land owned by that municipality to report the person's taxable gross receipts for that municipality.

          D. For a person engaged in the business of selling real estate, the location of the real property sold is the "place of business", and all receipts from that sale are to be reported from that place of business.

          E. Except as provided in Subsection F of this section, a receipt for the sale of a professional service or a business service shall be reported from the jurisdiction where the service is delivered to the ultimate consumer of the service. If the jurisdiction cannot be determined, the jurisdiction shall be reasonably approximated.

          F. Receipts for the sale of lobbying services shall be reported from the jurisdiction where the ultimate consumer:

                (1) is domiciled, if the ultimate consumer is an individual; or

                (2) has its principal place of business in this state, if the ultimate consumer is a business.

          G. As used in this section:

                (1) "business services" means the furnishing of labor, time or effort by a person to a business that does not involve the delivery of a specific end product other than reports and other materials that are merely incidental to the required performance. "Business services" includes the furnishing of insurance but does not include construction or the services of employees of a state agency or a local public body; and

                (2) "professional services" means the services of architects, archaeologists, engineers, surveyors, landscape architects, medical arts practitioners, scientists, management and systems analysts, certified public accountants, registered public accountants, lawyers, psychologists, planners, researchers, construction managers and other persons or businesses providing similar professional services."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.

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