SB 137 — DISTRIBUTE PART OF GRT ON SVCS TO MUNIS

.222392.1The -business 4location -for STBTC/SBgross 137receipts (1)from if the propertysale isor receivedlicense byof thetangible purchaserpersonal atproperty, theand Newany Mexicorelated [business]deductions, locationshall ofbe theat seller, the locationfollowing oflocations: the seller;

(2)(1) if the property is not received by the purchaser at [athe business]New theMexico [business ] location of the seller, the location indicatedof by instructions for delivery to the purchaser, or the purchaser's donee, when known to the seller;

(3)(2) if Paragraphsthe (1)property andis (2)not ofreceived thisby subsectionthe doh notg apply,o purchaser at [a business ] the location indicatedof bythe anseller, addressthe fort thehr purchaserg availablee fromlocation theindicated businessby recordsinstructions offor delivery to the selleri thatk areh maintainedr inpurchaser, or the ordinarypurchaser's coursedonee, ofwhen business;known to the seller;

providedi thats useh (3) if Paragraphs (1) and (2) of this , t, e u g e b l subsection do not apply, the location indicated by an address doese note constituteh badn faith;d d i for the purchaser available from the business records of the = = o h l ] b ,d seller that are maintained in the ordinary course of business;

(4)i ifa Paragraphsº (1)e throughr (3)i of= thisr subsectiont doe notw apply,d theprovided locationthat foruse the purchaser obtained during consummation of the sale, including the address ofdoes anot purchaser'sconstitute paymentbad instrument,faith; if no other address is e t 17 available;

providedm thata use of this address does not w l n o d 18m constitute: bad faith;

orb =e d s º o t n = 19.222392.1AIC (5)February if14, Paragraphs2022 (1)(9:09am) throughs (4)k ofm thise a- l5 i- e a n e d r 20e subsectionl dou not[ apply,A includingd aSTBTC/SB circumstance137 in(4) whichif theParagraphs a(1) tthrough m(3) mof 21this sellersubsection isdo withoutnot sufficientapply, informationthe tolocation applyfor thosethe dpurchaser robtained eduring 22consummation standards,of the locationsale, fromincluding which the propertyaddress wasof shippeda orpurchaser's cpayment einstrument, sif kno 23other transmitted.address is available;

eprovided athat nuse bof 24this D.address does not constitute bad faith;

Theor business(5) locationif forParagraphs gross(1) receiptsthrough from(4) uof [this thesubsection leasedo ofnot tangibleapply, personal property, including vehicles,a .222392.1circumstance -in 5which -the STBTC/SBseller 137is otherwithout transportationsufficient equipmentinformation andto otherapply mobilethose tangiblestandards, personal property, and any related deductions, shall be the location offrom primarywhich use of the property, as indicated by the address for the property providedwas byshipped theor lesseetransmitted. that is available to the lessor from the lessor's records maintained in the ordinary course of business;

providedD. that use of this address does not constitute bad faith.

The business location for gross receipts from the lease of primarytangible [businesspersonal location]property, useincluding shallvehicles, notother betransportation alteredequipment byand intermittentother usemobile attangible differentpersonal locations,property, suchand asany related deductions, shall be the h location of primary use of businessthe property, as indicated by the u » r address for the property provided by the lessee that accompaniesis employeest onh businessg tripse andavailable serviceto calls.the lessor from the lessor's records maintained in l i h r i s the ordinary course of business;

E.provided that use of this h , e h address does not constitute bad faith.

The businesslocation of primary t u g e b l [business location for] grossuse receiptsshall fromnot thebe sale,altered leaseby orintermittent licensee e , gh n d d i = = o h use at different locations, such as use of franchises,business andproperty anyl related] deductions,b shall,d bei wherea theº franchiser isthat used.accompanies employees on business trips and service calls.

e r = t e w d E.

The business location for gross receipts from m a n o d m :

b r e t º o t n = .222392.1AIC February 14, 2022 (9:09am) s k m e - 6 - e a n e d r e l u [ A d STBTC/SB 137 the sale, lease or license of franchises, and any related deductions, shall be where the franchise is used.

e t 17 (1) for professional services performed in New w l n d 18 Mexico, other than construction-related services, or performed = = 19 outside New Mexico when the product of the service is initially a l i a e r 20 used in New Mexico, the location of the performer of the a t m m 21 service or seller of the product of the service, as d r e 22 appropriate;

c e s k 23 (2) for construction services and e a n b 24 construction-related services performed for a construction u [ project in New Mexico, the location of the construction site;

.222392.1 - 6 - STBTC/SB 137 (3) for services with respect to the selling of real estate located in New Mexico, the location of the real estate;

h g o (4) for transportation of persons or property t hr g e in, into or from New Mexico, the location where the person or i k h r property enters the vehicle;

and i s h (5) for services other than those described in , t, e u g e b l Paragraphs (1) through (4) of this subsection, the location e e h n d d i where the product of the service is delivered.

= = o h l ] b ,d G.

Except as provided in Subsection H of this section,i thea businessº locatione forr usesi of= propertyr ort servicese subjectw tod thesection, compensating tax shall be [reported at] the [business]business location atfor whichuses grossof receiptsproperty wouldor haveservices beenm requireda ton beo reportedd hadm the: transaction been subject to the gross receipts tax.

b e d s º o t n = .222392.1AIC February 14, 2022 (9:09am) s k m e - 7 - e a n e d r e l u [ A d STBTC/SB 137 subject to the compensating tax shall be [reported at] the [business] location at which gross receipts would have been required to be reported had the transaction been subject to the gross receipts tax.

If a [person] taxpayer subject to the e t 17 compensating tax can demonstrate that the first use upon which w l n d 18 compensating tax is imposed occurred at a time and place = = 19 different from the time and place of the purchase, then the a l i a e r 20 business location for the compensating tax shall be [reported a t m m 21 at] the [business] location of the first use.

d r e 22 [I.

The secretary shall designate codes to identify c e s k 23 the business locations for a person's gross receipts, or use e a n b 24 for purchases subject to the compensating tax, and deductions u [ related to those receipts or that use shall be reported.

.222392.1 - 7 - STBTC/SB 137 J.] I.

The secretary shall develop a location-code database that provides the business location codes and place of business location codes designated [pursuant to Subsection I of h g o this section] by the secretary.

The secretary shall also t hr g e develop and provide to taxpayers a location-rate database that i k h r sets out the tax rates applicable to business locations within i s h the state, by address, and sellers who properly rely on this , t, e u g e b l database shall not be liable for any additional tax due to the e e h n d d i use of an incorrect rate.

[K.]= J.= o h l ] b ,d [K.

] J.

[(1)i "businessa location"º meanse ther codei designated= byr thet departmente tow identifyd business[(1) locations"business andlocation" requiredmeans to be used to report the grosscode receipts,m ora usen foro purchasesd subjectm to: the compensating tax, and deductions related to those receipts or that use;

(2)]b (1)e "grossd receipts"s means,º aso e t 17n applicable,= "gross.222392.1AIC receipts"February as14, used2022 in(9:09am) thes Grossk Receiptsm ande w- l8 - e a n e d 18r Compensatinge Taxl Actu and[ theA Leasedd VehicleSTBTC/SB Gross137 Receiptsdesignated Taxby =the =department 19to Actidentify business locations and "interstaterequired telecommunicationsto grossbe receipts"used into report the agross lreceipts, ior ause efor rpurchases 20subject Interstateto Telecommunicationsthe Grosscompensating Receiptstax, Taxand Act;deductions related to those receipts or that use;

a(2)] t(1) m"gross mreceipts" 21means, [(3)]as (2)applicable, "in-person"gross service"receipts" meansas aused service d r e 22 physically provided in person by the serviceGross provider,Receipts whereand cCompensating eTax sAct kand 23 the customerLeased orVehicle theGross customer'sReceipts realTax orAct tangibleand personal"interstate etelecommunications agross nreceipts" b 24 property upon which the service is performed is in the sameInterstate uTelecommunications [Gross locationReceipts asTax theAct; service provider at the time the service is .222392.1 - 8 - STBTC/SB 137 performed;

and[(3)] [(4)](2) (3)"in-person "professional service" means a service,service otherphysically thanprovided anin in-personperson service,by thatthe requiresservice eitherprovider, anwhere advancedthe degreecustomer fromor anthe accreditedcustomer's post-secondaryreal educationalor institutiontangible orpersonal aproperty licenseupon fromwhich the stateservice tois perform."performed SECTIONis 3.in the same location as the service provider at the time the service is performed;

APPROPRIATIONS.--and A.[(4)] (3) "professional service" means a service, other than an in-person service, that requires either h g o an advanced degree from an accredited post-secondary t hr g e educational institution or a license from the state to i k h r perform." i s h SFCº SECTION 3.

FiftyAPPROPRIATIONS.-- million, dollarst, ($50,000,000)e isu appropriatedg frome theb generall fundA. to the destination-based sourcing safety net fund for expenditure in fiscal years 2022 through 2024 to implement the provisions of Section 1 of this act.

Fifty million dollars ($50,000,000) is e e h n d d i appropriated from the general fund to the destination-based = = o h l ] b ,d sourcing safety net fund for expenditure in fiscal years 2022 i a º e r i = r t e w d through 2024 to implement the provisions of Section 1 of this m a n o d m :

b e d s º o t n = .222392.1AIC February 14, 2022 (9:09am) s k m e - 9 - e a n e d r e l u [ A d STBTC/SB 137 act.

Two million five hundred thousand dollars ($2,500,000) is appropriated from the general fund to the taxation and revenue department for expenditure in fiscal years e t 17 2022 and 2023 to implement the provisions of Section 2 of this w l n d 18 act.

Any unexpended or unencumbered balance remaining at the = = 19 end of fiscal year 2023 shall revert to the general fund.

a l i a e r 20 SECTION 4.

EFFECTIVE DATE.--The effective date of the a t m m 21 provisions of Section 2 of this act is July 1, 2022.2022.»SFC SFCº SECTION 3.

dEFFECTIVE rDATE.--The eeffective 22date of the provisions of Section 2 of this act is October 1, 2022.»SFC SECTION 5.SFCº 5.»SFC SFCº4.»SFC EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

EMERGENCY.--It- is10 necessary- forh theu public» cr t h g e l i h r i s kh 23, peace,e healthh andt safetyu thatg thise actb takel effecte immediately.e , gh n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .222392.1AIC February 14, 2022 (9:09am) s k m e e a n be 24d -r 9e -l u [ .222392.1A d