Multistate Tax Alert: New Mexico Governor Susana Martinez Recently Signed House Bill 641, Modifying New Mexico Tax Law
Reduction in the Corporate Tax Rate, Imposition of Mandatory Combined Reporting on Certain Retailers
New Mexico Governor Susana Martinez recently signed House Bill 641 ("H.B. 641"),1 which includes the following modifications to New Mexico tax law:
- Phases in, over five years, corporate income tax rate reductions
- Requires combined reporting for certain unitary corporations engaged in retail sales
- Phases in, over five years, elective single sales factor apportionment for eligible manufacturing corporations and eliminates throwback for electing corporations
- Amends the gross receipts tax deduction for tangible property consumed in the manufacturing process
- Extends the high-wage jobs tax credit and tightens the criteria for qualification
- Allows municipalities and counties to impose a local option gross receipts tax
- Expands the scope of the film production tax credit and requirements for eligibility
In this Tax Alert you can download we summarize the changes.
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1 Laws 2013, Chapter 160, 1st Regular Session; adopted Apr. 4, 2013, effective Jun. 14, 2013.