HOUSE BILL 163
56th legislature - STATE OF NEW MEXICO - first session, 2023
John Block and Tanya Mirabal Moya
RELATING TO TAXATION; PROVIDING A TWENTY-FIVE PERCENT GROSS RECEIPTS TAX DEDUCTION FOR CERTAIN SMALL BUSINESSES.
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--CERTAIN BUSINESSES.--
A. Twenty-five percent of the receipts of a small business may be deducted from gross receipts.
B. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.
C. The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the deduction. The department shall present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the deduction.
D. As used in this section, "small business" means a business that employs no more than four full- or part-time employees who are employed by the business for at least forty-four weeks in the twelve months prior to the month for which the deduction pursuant to this section is claimed."
SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2023.
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