reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-8 - Additional definition; successful business.

For the purposes of the Venture Capital Investment Act, "successful business" means a corporation that, at the end of the taxpayer's holding period, has experienced a net increase in valuation of at least fifteen million dollars ($15,000,000); provided:
A. the increase in valuation shall be calculated by subtracting the valuation of the corporation at the time it was determined to be a qualified diversifying business from the current valuation of the corporation at the time of the transfer giving rise to the qualified diversifying business net capital gain;
B. the current valuation of the corporation at the time of the transfer giving rise to the qualified diversifying business net capital gain equals the per-share value of the money and property received by the taxpayer on the transfer multiplied by the outstanding shares of the corporation, as calculated using the number of shares that would be outstanding if all outstanding convertible securities were fully converted and all outstanding options and warrants were fully exercised; and
C. in the case of any stock issued in a calendar year after 1994, the net increase in valuation required shall be an amount equal to fifteen million dollars ($15,000,000) multiplied by the cost-of-living adjustment determined under Section 1(f)(3) of the Internal Revenue Code for that calendar year by substituting "1992" for "1987" in Subparagraph (B) of that section.
History:
Laws 1993, ch. 313, § 8; 1995, ch. 89, § 7.
ANNOTATIONS
Cross references.
— For Section 1 of the Internal Revenue Code,
see
26 U.S.C. § 1.
The 1995 amendment,
effective June 16, 1995, rewrote the section heading which read "Business success requirement" and rewrote the section to such an extent that a detailed comparison would be impracticable.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-8.1 - Repealed.

History:
1978 Comp., § 7-2D-8.1, enacted by Laws 1995, ch. 89, § 8; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-2D-8.1 NMSA 1978, as enacted by Laws 1995, ch. 89, § 8, relating to tax credit, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-9 - Special rules for options, warrants and certain convertible investments.

A. In the case of stock that is acquired by the taxpayer through the exercise of a nontransferable option or warrant issued in exchange for the performance of services for the corporation issuing it, through the conversion of convertible debt or in exchange for securities of the corporation in a transaction described in Section 368 of the Internal Revenue Code:
(1) the stock shall be treated as acquired by the taxpayer at original issue; and
(2) the stock shall be treated as having been held during the period that the option, warrant or debt was held or that the security was outstanding.
B. For purposes of Subsection A of Section 7-2D-5 NMSA 1978 and notwithstanding Subsection B of that section, in the case of a debt instrument converted to stock or stock issued in exchange for securities in a transaction described in Section 368 of the Internal Revenue Code, such stock shall be treated as issued for an amount equal to the sum of:
(1) the principal amount of the debt or security at the time of the conversion or exchange; and
(2) accrued but unpaid interest on that loan or security.
History:
Laws 1993, ch. 313, § 9; 1995, ch. 89, § 9.
ANNOTATIONS
Cross references.
— For Section 368 of the Internal Revenue Code,
see
26 U.S.C. § 368.
The 1995 amendment,
effective June 16, 1995, substituted "a nontransferable option or warrant issued in exchange for the performance of services for the corporation issuing it" for "an applicable option or warrant" in the introductory paragraph of Subsection A; substituted "Section 7-2D-5 NMSA 1978" for "Section 5 of the Venture Capital Investment Act" near the beginning of Subsection B; and deleted former Subsection C which defined "applicable option or warrant".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-10 - Certain tax-free and other transfers.

A. This section applies to the following transfers of stock:
(1) by gift;
(2) at death;
(3) to the extent that the basis of the property in the hands of the transferee is determined by reference to the basis of the property in the hands of the transferor by reason of Sections 334(b), 723 or 732 of the Internal Revenue Code; and
(4) of qualified diversifying business stock for other qualified diversifying business stock in a transaction described in Section 351 of the Internal Revenue Code or a reorganization described in Section 368 of the Internal Revenue Code.
B. In the case of a transfer of stock to which this section applies, the transferee shall be treated as having acquired the stock in the same manner as the transferor and as having held such stock during any continuous period immediately preceding the transfer during which it was held or treated as held under this section by the transferor.
C. In the case of a transaction described in Section 351 of the Internal Revenue Code or a reorganization described in Section 368 of the Internal Revenue Code, if a qualified diversifying business stock is transferred for other stock that is not qualified diversifying business stock, the transfer shall be treated as a transfer to which this section applies solely with respect to the person receiving such other stock.
D. This section applies to the sale or exchange of stock treated as qualified diversifying business stock by reason of Subsection C of this section only to the extent of the gain, if any, that would have been recognized at the time of the transfer described in Subsection C of this section if Section 351 or 368 of the Internal Revenue Code had not applied at that time.
E. For purposes of this subsection, stock treated as qualified diversifying business stock under Subsection C of this section shall be so treated for subsequent transactions or reorganizations, except that the limitation of Subsection D of this section shall be applied as of the time of the first transfer to which Subsection C of this section applied.
F. Except in the case of a transaction described in Section 368 of the Internal Revenue Code, this section applies only if, immediately after the transaction, the corporation issuing the stock owns, directly or indirectly, stock representing control, within the meaning of Section 368(c) of the Internal Revenue Code, of the corporation whose stock was transferred.
History:
Laws 1993, ch. 313, § 10.
ANNOTATIONS
Effective dates.
— Laws 1993, ch. 313 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 18, 1993, 90 days after the adjournment of the legislature.
Cross references.
— For Sections 334, 351, 368, 723, and 732 of the Internal Revenue Code,
see
26 U.S.C. §§ 334, 351, 368, 723, and 732, respectively.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-11 - Stock exchanged for property.

For purposes of the Venture Capital Investment Act, in the case where the taxpayer transfers property other than money or stock to a corporation in exchange for stock in that corporation:
A. the stock shall be treated as having been acquired by the taxpayer on the date of that exchange; and
B. the basis of the stock in the hands of the taxpayer shall be treated as equal to the fair market value of the property exchanged.
History:
Laws 1993, ch. 313, § 11.
ANNOTATIONS
Effective dates.
— Laws 1993, ch. 313 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 18, 1993, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-12 - Pass-thru entities.

For purposes of the Venture Capital Investment Act, any gain or loss of a pass-thru entity that is treated for purposes of that act as a gain or loss of any person holding an interest in that entity shall retain its character as qualified diversifying business capital gain or loss in the hands of that person.
History:
Laws 1993, ch. 313, § 12.
ANNOTATIONS
Effective dates.
— Laws 1993, ch. 313 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 18, 1993, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-13 - Election.

A. On any date after June 30, 1993, a taxpayer who holds any stock of a corporation that has its commercial domicile in New Mexico and meets the requirements of this section may elect to have the stock treated as a qualified diversifying business stock in accordance with the provisions of this section for purposes of claiming the tax credit pursuant to the Venture Capital Investment Act.
B. On any date after June 30, 1994, if a taxpayer holds any stock of a corporation that has its commercial domicile in New Mexico on that date and which stock, at the time it was issued, would have been treated as qualified diversifying business stock pursuant to the Venture Capital Investment Act but for the facts that the stock was issued on or before June 30, 1994 and that the stock was issued by a corporation that at the time did not have its commercial domicile in New Mexico and the value of such stock on that date exceeds its adjusted basis, the taxpayer may elect to set that date as the election date and treat the stock as having been sold on that date for an amount equal to its value on that date and as having been reacquired on that date for an amount equal to such value.
C. For purposes of determining the tax credit pursuant to Section 7-2D-8.1 NMSA 1978 and whether or not the taxpayer actually incurs federal or New Mexico income tax liability, the gain from sales determined in Subsection B of this section shall be treated as received or accrued and the holding period of the reacquired stock shall be treated as beginning on that election date. Such stock shall be treated after such reacquisition as acquired in the same manner and at the same time as the original acquisition. Neither the requirement of Subsection A of Section 7-2D-4 NMSA 1978 that the stock must have been issued after June 30, 1994 nor the requirement of Subsection A of Section 7-2D-5 NMSA 1978 that the issuing corporation have its commercial domicile in New Mexico shall apply.
D. An election under this section with respect to any stock shall be made in the manner the secretary prescribes. Such an election, once made with respect to any stock, is irrevocable.
E. Notwithstanding the provisions of this section, no credit shall be allowed or claimed on any qualified diversifying business net capital gain arising from the sale of stock prior to July 1, 1998.
History:
Laws 1993, ch. 313, § 13; 1995, ch. 89, § 10.
ANNOTATIONS
The 1995 amendment,
effective June 16, 1995, in Subsection C, substituted "Section 7-2D-8.1 NMSA 1978" for "Section 3 of the Venture Capital Investment Act", "Section 7-2D-4 NMSA 1978" for "Section 4 of the Venture Capital Investment Act" and "Section 7-2D-5 NMSA 1978" for "Section 5 of the Venture Capital Investment Act".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2D - Venture Capital Investments › Section 7-2D-14 - Administration of act.

The Venture Capital Investment Act shall be administered pursuant to the provisions of the Tax Administration Act [Chapter 7, Article 1 NMSA 1978].
History:
Laws 1993, ch. 313, § 14.
ANNOTATIONS
Effective dates.
— Laws 1993, ch. 313 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 18, 1993, 90 days after the adjournment of the legislature.
Compiler's notes.
— Laws 1993, ch. 313, § 17 provided that if any part or application of the act is held invalid, the entire act shall be deemed invalid and shall cease to apply and the credit shall not be extended to any taxpayer.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2E - Rural Job Tax Credits › Section 7-2E-1 - Repealed.

History:
Laws 1999, ch. 183, § 1; 2001, ch. 184, § 1; 2005, ch. 104, § 8.
ANNOTATIONS
Repeals.
— Laws 1999, ch. 183, § 3 repealed 7-2E-1 NMSA 1978, as enacted by Laws 1999, ch. 183, § 1, relating to rural tax credit, effective July 1, 2006.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2E - Rural Job Tax Credits › Section 7-2E-2 - Repealed.

History:
Laws 1999, ch. 183, § 2; 2000, ch. 33, § 2; repealed by Laws 2005, ch. 104, § 27.
ANNOTATIONS
Repeals.
— Laws 2005, ch. 104, § 27 repealed 7-2E-2 NMSA 1978, as enacted by Laws 1999, ch. 183, § 2, relating to continued applicability of rural job tax credit, effective July 1, 2005. For provisions of former section,
see
the 2004 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2F - Film Production Tax Credit › Section 7-2F-1.1 - Short title.

Chapter 7, Article 2F NMSA 1978 may be cited as the "Film Production Tax Credit Act".
History:
Laws 2011, ch. 165, § 2 and Laws 2011, ch. 177, § 3.
ANNOTATIONS
Duplicate laws.
— Laws 2011, ch. 165, § 2, effective June 17, 2011, and Laws 2011, ch. 177, § 3, effective July 1, 2011, enacted identical new sections. The section was set out as enacted by Laws 2011, ch. 177, § 3.
See
12-1-8 NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2F - Film Production Tax Credit › Section 7-2F-3 - Purposes; goals.

The purposes and goals of the Film Production Tax Credit Act are to:
A. establish the film industry as a permanent component of the economic base of New Mexico;
B. develop a pool of trained professionals and businesses in New Mexico to supply and support the film industry in the state;
C. increase employment of New Mexico residents;
D. improve the economic success of existing businesses in New Mexico; and
E. develop the infrastructure in the state necessary for a thriving film industry.
History:
Laws 2011, ch. 165, § 4; 2016, ch. 77, § 3.
ANNOTATIONS
The 2016 amendment,
effective May 18, 2016, in the introductory sentence, after "Tax Credit", added "Act".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2F - Film Production Tax Credit › Section 7-2F-5 - Assignment.

A. A film production company that is eligible to receive a credit pursuant to the Film Production Tax Credit Act may assign the payment of an authorized film production tax credit or a film and television tax credit to a third-party financial institution, or to an authorized third party, one time in a full or partial amount. If the parties to the assignment have complied with the procedures established by the taxation and revenue department for the assignment of a film production tax credit payment, the department shall remit to the institution that amount of tax credit approved by the department that would otherwise be remitted to the company.
B. For the purposes of this section:
(1) "authorized third party" means an entity that:
(a) holds the rights to a film for which a film production tax credit may be claimed; and
(b) initiates that film's production; and
(2) "financial institution" means:
(a) a fund purposely created to produce a film; or
(b) a bank, savings institution or credit union that is organized or chartered pursuant to the laws of New Mexico or the United States and that files a New Mexico income tax return.
History:
Laws 2015, ch. 62, § 1; 2016, ch. 77, § 5.
ANNOTATIONS
The 2016 amendment,
effective May 18, 2016, allowed a film production company to assign payment of a film and television tax credit to a third-party financial institution; in Subsection A, after "eligible to receive a", deleted "film production tax", after "credit", added "pursuant to the Film Production Tax Credit Act", and after "an authorized film production tax credit", added "or a film and television tax credit".
Applicability.
— Laws 2015, ch. 62, § 2 provided that Laws 2015, ch. 62, § 1 apply to taxable years beginning on or after January 1, 2015.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2F - Film Production Tax Credit › Section 7-2F-7 - Additional credit; television pilots and series.

A. In addition to the credit provided by Section 7-2F-6 NMSA 1978, an additional five percent shall be applied in calculating the amount of the film and television tax credit to direct production expenditures, except as provided in Subsections C and D of this section, on:
(1) a standalone pilot intended for series television in New Mexico; and
(2) series television productions intended for commercial distribution with an order for at least six episodes in a single season; provided that the New Mexico budget for each of those six episodes is fifty thousand dollars ($50,000) or more.
B. A film production company applying for an additional credit pursuant to this section shall not be eligible for the additional credit pursuant to Section 7-2F-8 NMSA 1978.
C. Direct production expenditures that are payments to a nonresident performing artist in a standalone pilot shall not be eligible for the additional credit pursuant to this section.
D. Payments to a nonresident performing artist for a television series may be eligible for the additional credit pursuant to this section; provided that:
(1) a television series completes at least one season of the scheduled episodes for that series in New Mexico;
(2) the film production company certifies the intention to produce a subsequent season to the series described in Paragraph (1) of this subsection in New Mexico; and
(3) the film production company, or its parent company, produces or begins production of an additional eligible television series in New Mexico during the same film production company's taxable year as the television series. Payments to a nonresident performing artist for the additional television series may also be eligible for the additional credit pursuant to this section.
History:
Laws 2015, ch. 143, § 6; 2016, ch. 77, § 7.
ANNOTATIONS
The 2016 amendment,
effective May 18, 2016, clarified citations to the NMSA 1978 within the section; in Subsection A, in the introductory sentence, deleted "5 of this 2015 act" and added "7-2F-6 NMSA 1978"; and in Subsection B, deleted "7 of this 2015 act" and added "7-2F-8 NMSA 1978".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2F - Film Production Tax Credit › Section 7-2F-8 - Additional credit; qualified production facilities.

A. In addition to the credit provided by Section 7-2F-6 NMSA 1978, an additional five percent shall be applied in calculating the amount of the film and television tax credit to direct production expenditures that are directly attributable and paid to a New Mexico resident who is hired as industry crew, or who is hired as a producer, writer or director working directly with the physical production and has filed a New Mexico income tax return as a resident in the two previous taxable years. The direct production expenditures shall be on a production with a total new budget of:
(1) not more than thirty million dollars ($30,000,000) that shoots at least ten principal photography days in New Mexico at a qualified production facility; provided that a film production company shall:
(a) shoot at least seven of those days at a sound stage that is a qualified production facility and the remaining number of required days, if any, at a standing set that is a qualified production facility; and
(b) for each of the ten days, include industry crew working on the premises of those facilities for a minimum of eight hours within a twenty-four-hour period; or
(2) thirty million dollars ($30,000,000) or more that shoots at least fifteen principal photography days in New Mexico at a qualified production facility; provided that a film production company shall:
(a) shoot at least ten of those days at a sound stage that is a qualified production facility and the remaining number of required days, if any, at a standing set that is a qualified production facility; and
(b) for each day of the fifteen days, include industry crew working on the premises of the facility for a minimum of eight hours within a twenty-four-hour period.
B. A film production company that receives an additional credit pursuant to Section 7-2F-7 NMSA 1978 shall not be eligible for the additional credit pursuant to this section.
History:
Laws 2015, ch. 143, § 7; 2016, ch. 77, § 8.
ANNOTATIONS
The 2016 amendment,
effective May 18, 2016, clarified citations to the NMSA 1978 within the section; in Subsection A, in the introductory paragraph, deleted "5 of this 2015 act" and added "7-2F-6 NMSA 1978"; and in Subsection B, deleted "6 of this 2015 act" and added "7-2F-7 NMSA 1978".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2F - Film Production Tax Credit › Section 7-2F-10 - Payments for performing artists; credit limitation.

That amount of a film and television tax credit for the total payments of direct production expenditures for the services of performing artists shall not exceed five million dollars ($5,000,000) for services rendered by nonresident performing artists and featured resident principal performing artists in a production. This limitation shall not apply to the services of background artists and resident performing artists who are not cast in industry standard featured principal performer roles.
History:
Laws 2015, ch. 143, § 9.
ANNOTATIONS
Effective dates.
— Laws 2015, ch. 143 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 19, 2015, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2F - Film Production Tax Credit › Section 7-2F-11 - Requirements to contract with certain vendors.

A. A film production company shall make reasonable efforts, as determined by the division, to contract with a specialized vendor whose ordinary course of business directly relates to a standard industry craft inventory and that:
(1) provides services;
(2) provides inventory, for sale or lease, that is maintained in New Mexico and represented by the specialized vendor; or
(3) subcontracts similar standard industry craft inventory from other businesses with or without physical presence.
B. If a film production company does not contract with a specialized vendor, but contracts with a vendor that provides services, does not sell or lease standard industry craft inventory and outsources inventory from out-of-state businesses for a film production company, the film production company shall provide documentation of reasonable efforts made to find a specialized vendor.
History:
Laws 2015, ch. 143, § 10.
ANNOTATIONS
Effective dates.
— Laws 2015, ch. 143 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 19, 2015, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2F - Film Production Tax Credit › Section 7-2F-14 - Additional amounts to be applied in calculating credit amounts; expenditures made in certain areas of the state; television pilots and series.

A. In addition to the percentage of direct production expenditures and postproduction expenditures calculated pursuant to Section 7-2F-13 NMSA 1978, an additional percentage shall be applied for payments for direct production expenditures and postproduction expenditures, as follows:
(1) ten percent for work, services or items provided on location for a production of a film or commercial audiovisual product that is located in New Mexico at least sixty miles from the city hall of the county seat of certain counties; and
(2) five percent for either of the following:
(a) on a standalone pilot intended for series television in New Mexico or on series television productions intended for commercial distribution with an order for at least six episodes in a single season; provided that the New Mexico budget for each of those six episodes is fifty thousand dollars ($50,000) or more; or
(b) on a production in a qualified production facility.
B. As used in this section, "certain counties" means class A counties with a net taxable value of property for property taxation purposes of greater than seven billion five hundred million dollars ($7,500,000,000).
History:
Laws 2019, ch. 87, § 8; 2023, ch. 211, § 34.
ANNOTATIONS
The 2023 amendment,
effective June 16, 2023, increased the percentages to be applied for payments for direct production expenditures and postproduction expenditures, and revised the definition of "certain counties" as used in this section; in Subsection A, in the introductory clause, after "an additional", deleted "five percent" and added "percentage", and after "expenditures", added "as follows", in Paragraph A(1), after the paragraph designation, added "ten percent", after "at least sixty miles", deleted "outside of the exterior boundaries" and added "from the city hall of the county seat", in Paragraph A(2), in the introductory clause, after the paragraph designation, added "five percent"; and in Subsection B, after "certain counties'", deleted "includes" and added "means Class A", after "greater than", deleted "six billion dollars ($6,000,000,000)" and added "seven billion five hundred million dollars ($7,500,000,000)".
Applicability.
— Laws 2023, ch. 211, § 43 provided:
A. The provisions of Laws 2023, ch. 211, § 9 apply to taxable years beginning on or after January 1, 2023.
B. The provisions of Laws 2023, ch. 211, §§ 31 through 35 apply to film production companies that commence principal photography for a film or commercial audiovisual product on or after July 1, 2023.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2G - New Mexico Filmmaker Tax Credit (Repealed.) › Section 7-2G-1 - Repealed.

History:
Laws 2005, ch. 337, § 1; Laws 2006, ch. 78, § 3.
ANNOTATIONS
Repeals.
— Laws 2006, ch. 78, § 3 repealed 7-2G-1 NMSA 1978, as enacted by Laws 2005, ch. 337, § 1, relating to the New Mexico filmmaker tax credit, effective July 1, 2006. For provisions of former section,
see
the 2005 NMSA 1978 on the
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2H - Native American Veterans' Income Tax Settlement Fund › Section 7-2H-1 - Legislative findings.

A. Native Americans have had a long history of serving their country through active duty in the armed forces of the United States during periods of both war and peace and have made great sacrifices in serving their country through active duty in the military during periods of war and peace.
B. Native American veterans domiciled within the boundaries of their tribal lands or their spouse's tribal lands during their periods of active military service may have been exempt from paying state personal income taxes on their military income, but may have had state personal income taxes withheld from their military income.
C. Native American veterans now are barred by the state statute of limitations from claiming refunds of state personal income taxes that may have been withheld from their military income when they were domiciled within the boundaries of their tribal lands or their spouse's tribal lands during the period of their active military duty, and even if not barred by the statute of limitations, the passage of time extending to decades will make it difficult for many Native American veterans to meet strict standards of proof that they are entitled to a refund of withheld state personal income taxes.
D. It is incumbent upon the state to ensure that it was not unjustly enriched by the withholding of state personal income taxes from Native American veterans who were domiciled within the boundaries of their tribal lands or their spouse's tribal lands during the period of their active military duty, and the state should implement a feasible means of refunding to Native American veterans any state personal income taxes that were withheld from military income while they were domiciled within the boundaries of their tribal lands or their spouse's tribal lands during the period of their active military duty.
History:
Laws 2008, ch. 89, § 1; 2009, ch. 289, § 1.
ANNOTATIONS
The 2009 amendment,
effective June 19, 2009, in Subsection B, after "veterans domiciled", deleted "on" and added "within the boundaries of their tribal lands or their spouse's tribal lands" and after "personal income taxes", deleted "improperly"; in Subsection C, in two places, before "withheld", deleted "improperly"; and between "military income" and "and even if not barred", added new language; in Subsection D, in two places, before "withheld", deleted "improperly"; between "Native American veterans" and "and the state should implement", added new language; and after "withheld from military", added the remainder of the sentence.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2H - Native American Veterans' Income Tax Settlement Fund › Section 7-2H-2 - Definition.

As used in Chapter 7, Article 2H NMSA 1978, "fund" means the Native American veterans' income tax settlement fund.
History:
Laws 2008, ch. 89, § 2; 2009, ch. 289, § 2.
ANNOTATIONS
The 2009 amendment,
effective June 19, 2009, deleted Subsection A, which defined "department"; and deleted Subsection C, which defined "secretary".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2H - Native American Veterans' Income Tax Settlement Fund › Section 7-2H-4 - Duties of the secretary.

A. The secretary of veterans' services shall conduct a study in cooperation with the taxation and revenue department to determine whether Native American veterans who were domiciled within the boundaries of their tribal lands or their spouse's tribal lands during the period of their active military duty had state personal income taxes withheld from their military income and if so, to determine the amount of such state personal income taxes withheld and the number and identity of Native American veterans or their survivors affected by the withholding of such state personal income taxes.
B. The secretary of taxation and revenue and the secretary of veterans' services shall promulgate rules for a state program to compensate Native American veterans or their survivors for state personal income taxes withheld from military income while on active military duty and domiciled within the boundaries of the veteran's or the veteran's spouse's tribal lands.
C. The secretary of taxation and revenue shall report to the appropriate interim legislative committee no later than October 1 of each year regarding estimates of the amount of state personal income taxes withheld from the military income of Native American veterans domiciled on their respective tribal lands, the number of Native American veterans or their survivors affected by such withholding of state personal income taxes, total expenditures from the fund for the previous fiscal year and the anticipated appropriations to the fund needed to pay for settlements to be entered into for the next fiscal year.
History:
Laws 2008, ch. 89, § 4; 2009, ch. 289, § 4.
ANNOTATIONS
The 2009 amendment,
effective June 19, 2009, in Subsection A, after "secretary", added "of veterans' services"; after "Native American veterans who are domiciled", deleted "on" and added "within the boundaries of their tribal lands or their spouse's"; after "withheld from their", deleted "pay" and added "military income"; before "withheld", deleted "improperly"; and before "withholding", deleted "improper"; in Subsection B, after "The secretary", added "of taxation and revenue and the secretary of veterans' affairs"; before "withheld", deleted "improperly"; and after "active military duty", added the remainder of the sentence; and in Subsection C, after "The secretary", added "of taxation and revenue"; before "withheld", deleted "improperly"; and after "Native American veterans", added "domiciled on their respective tribal lands".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-1 - Short title.

Chapter 7, Article 3 NMSA 1978 may be cited as the "Withholding Tax Act".
History:
1953 Comp., § 72-15-49, enacted by Laws 1961, ch. 243, § 1; 1979, ch. 29, § 1.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation § 602.
85 C.J.S. Taxation §§ 1779 to 1780.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-4 - Deductions considered taxes.

Amounts deducted under the provisions of the Withholding Tax Act shall be a collected tax. No employee shall have a right of action against the employer for any amount deducted and withheld from the employee's wages. No individual who has instructed a payor to deduct and withhold an amount from the pension or annuity due that individual shall have a right of action against a payor for any amount deducted and withheld pursuant to the instruction. No wagerer who receives winnings that are subject to withholding shall have a right of action against the person who deducted and withheld an amount from the wagerer's winnings for the amount deducted and withheld.
History:
1953 Comp., § 72-15-52, enacted by Laws 1961, ch. 243, § 4; 1971, ch. 27, § 1; 1990, ch. 64, § 3; 1996, ch. 16, § 5.
ANNOTATIONS
Cross references.
— For right of action for gambling losses,
see
44-5-1 NMSA 1978.
The 1996 amendment,
effective April 1, 1996, added the last sentence.
The 1990 amendment,
effective July 1, 1990, added the second sentence and made minor stylistic changes in the first sentence.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 530, 531, 596 to 607.
Construction, application and effect, with respect to withholding, social security and unemployment compensation taxes, of statutes imposing penalties for tax evasion or default, 22 A.L.R.3d 8.
85 C.J.S. Taxation §§ 1756 to 1759, 1779 to 1780, 1763 to 1764.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-5 - Withholder liable for amounts deducted and withheld; exceptions.

Every withholder shall be liable for amounts required to be deducted and withheld by the Withholding Tax Act regardless of whether the amounts were in fact deducted and withheld, except that:
A. if the withholder fails to deduct and withhold the required amounts and if the tax against which the required amounts would have been credited is paid, the withholder shall not be liable for those amounts not deducted and withheld; or
B. if the withholder's failure to deduct and withhold the required amounts was due to reasonable cause, the withholder shall not be liable for amounts not deducted and withheld.
History:
1953 Comp., § 72-15-53, enacted by Laws 1961, ch. 243, § 5; 1990, ch. 64, § 4; 1999, ch. 14, § 2; 2010, ch. 53, § 4.
ANNOTATIONS
The 2010 amendment,
effective May 19, 2010, in the introductory sentence, after "Every withholder", deleted "or pass-through entity"; in Subsection A, after "if the withholder", deleted "or pass-through entity"; and in Subsection B, after "if the withholder's", deleted "or pass-through entity", and after "reasonable cause, the withholder", deleted "or pass-through entity".
Applicability.
— Laws 2010, ch. 53, § 19 provided that the provisions of this act are applicable to taxable years beginning on or after January 1, 2011.
The 1999 amendment,
effective June 18, 1999, inserted "or pass-through entity" and "or pass-through entity's" throughout the section, and deleted "or not" following "of whether" in the introductory language.
The 1990 amendment,
effective July 1, 1990, substituted "Withholder" for "Employer" in the section heading and throughout the section and made a minor stylistic change in Subsection B.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 530, 531, 596 to 607.
Application of payments, made in satisfaction of employer's withholding tax liability, to employer's liability for penalties, 59 A.L.R. Fed. 484.
85 C.J.S. Taxation §§ 1719 to 1756.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-6 - Date payment due.

Taxes withheld under the provisions of the Withholding Tax Act must be paid on or before the twenty-fifth day of the month following the month when the taxes were required to be withheld.
History:
1978 Comp., § 7-3-6, enacted by Laws 1969, ch. 25, § 1; 2000, ch. 33, § 4; 2010, ch. 53, § 5.
ANNOTATIONS
The 2010 amendment,
effective May 19, 2010, in the first sentence, deleted "Except for amounts withheld pursuant to the provisions of Section 7-3-12 NMSA 1978" and deleted the former last sentence, which provided that amounts withheld pursuant to Section 7-3-12 NMSA 1978 must be paid on or before the due date of the return for the pass-through entity.
Applicability.
— Laws 2010, ch. 53, § 19 provided that the provisions of this act are applicable to taxable years beginning on or after January 1, 2011.
The 2000 amendment,
effective May 17, 2000, added the exception for amounts withheld pursuant to the provisions of 7-3-12 NMSA 1978 from the time period that taxes must be paid, and added the stipulation that such amounts must be paid on or before the due date of the return for the pass-through entity.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-8 - Annual statement of withholding and information regarding state assistance for low-income New Mexicans to be provided to withholdees.

On or before January 31 of the year following that for which the annual statement of withholding is made pursuant to Section 7-3-7 NMSA 1978, a withholder shall provide to a withholdee:
A. a copy of the annual statement of withholding; and
B. information regarding state assistance for low-income New Mexicans, including information regarding refundable tax rebates and credits for low-income filers provided by the state, such as the low-income comprehensive tax rebate and the working families tax credit. The information shall be provided in English and in Spanish on a form and in a manner required by the department, and the department shall make the information available on the department's website.
History:
Laws 1999, ch. 205, § 1; 2003, ch. 2, § 7; 2019, ch. 270, § 14; 2021, ch. 116, § 3.
ANNOTATIONS
The 2021 amendment,
effective June 18, 2021, required withholders of the withholding tax to provide to withholdees information regarding state assistance for low-income New Mexicans from the taxation and revenue department; in the section heading, deleted "Copy of the" and added "annual", after "statement of withholding", added "and information regarding state assistance for low-income New Mexicans", and after "to be", deleted "furnished the withholdee" and added "provided to withholdees"; in the introductory clause, deleted "A copy of the annual statement of withholding shall be furnished to the withholdee by the withholder", added "annual" preceding "statement", and after "statement", added "of withholding", and after "is made", added "pursuant to Section 7-3-7 NMSA 1978, a withholder shall provide to a withholdee"; and added Subsections A and B.
The 1990 amendment,
effective July 1, 1990, substituted "withholdee" for "employee" in the section heading and in the text, and substituted "to the withholdee by the withholder" for "the employee" and "January 31" for "February 15".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-9 - Withheld amounts credited against tax.

The entire amount of income upon which tax was deducted and withheld shall be included in the gross income of the withholdee for state income tax purposes. The amount of tax deducted and withheld under the provisions of the Withholding Tax Act during the taxable year shall be credited against any state income tax liability for that taxable year.
History:
1953 Comp., § 72-15-59, enacted by Laws 1961, ch. 243, § 11; 1990, ch. 64, § 7.
ANNOTATIONS
The 1990 amendment,
effective July 1, 1990, deleted "from wages" following "amount of income" and substituted "withholdee" for "employee" in the first sentence and "tax deducted" for "wages deducted" in the second sentence.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 258, 602.
85 C.J.S. Taxation §§ 1700, 1779 to 1780, 1782.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-10 - Voluntary submission to act.

Any employee whose participation under the Withholding Tax Act is not mandatory may subject himself or herself to its provisions with the consent of the employer.
History:
1953 Comp., § 72-15-66, enacted by Laws 1961, ch. 243, § 18; 1990, ch. 64, § 8.
ANNOTATIONS
The 1990 amendment,
effective July 1, 1990, inserted "or herself" following "himself" and substituted "the employer" for "his employer".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-11 - Acts to be performed by agents; liability of third parties.

A. When a fiduciary, agent or other person has the control, receipt, custody or disposal of or pays the wages of an employee or group of employees employed by one or more employers and the fiduciary, agent or other person has been designated by the United States secretary of the treasury to perform such acts as are required of employers for federal withholding purposes under the Internal Revenue Code, the fiduciary, agent or other person shall perform the acts required of employers by the provisions of the Withholding Tax Act. All provisions of Chapter 7 NMSA 1978 applicable in respect to an employer shall be applicable to a fiduciary, agent or other person so designated, but the employer, unless provided otherwise by law, for whom the fiduciary, agent or other person acts shall remain subject to the provisions of Chapter 7 NMSA 1978 applicable in respect to employers.
B. For purposes of the Withholding Tax Act, if a lender, surety or other person who is not an employer under the Withholding Tax Act with respect to an employee or group of employees, pays wages directly to the employee or group of employees employed by one or more employers or to an agent on behalf of the employee or employees, the lender, surety or other person shall be liable in its own person and estate to the state of New Mexico in a sum equal to the taxes required to be deducted and withheld from those wages by the employer. Any amount paid pursuant to this subsection shall be credited against the liability of the employer.
History:
1978 Comp., § 7-3-11, enacted by Laws 1990, ch. 64, § 9.
ANNOTATIONS
Cross references.
— For the Internal Revenue Code,
see
Title 26 of the United States Code.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-12 - Repealed.

History:
Laws 1999, ch. 14, § 3; 2000, ch. 33, § 5; 2003, ch. 86, § 3; 2005, ch. 185 § 1; repealed by Laws 2010, ch. 53, § 18.
ANNOTATIONS
Repeals.
— Laws 2010, ch. 53, § 18 repealed 7-3-12 NMSA 1978, as enacted by Laws 1999, ch. 14, § 3, relating to information returns required from pass-through entities, effective May 19, 2010. For provisions of former section,
see
the 2009 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-13 - Withholding information return required; penalty.

A. An employer that has more than fifty employees and is not required to file an unemployment insurance tax form with the workforce solutions department or a payor shall file quarterly a withholding information return with the department on or before the last day of the month following the close of the calendar quarter.
B. The quarterly withholding information return required by this section shall contain all information required by the department, including:
(1) each employee's or payee's social security number;
(2) each employee's or payee's name;
(3) each employee's or payee's gross wages, pensions or annuity payments;
(4) each employee's or payee's state income tax withheld; and
(5) the workers' compensation fees due on behalf of each employee or payee.
C. Each quarterly withholding information return shall be filed with the department using a department-approved electronic medium.
D. Any employer or payor required to file the quarterly withholding information return who fails to do so by the due date or to file the return in accordance with Subsection C of this section is subject to a penalty in the amount of fifty dollars ($50.00).
History:
Laws 2010, ch. 53, § 7.
ANNOTATIONS
Effective dates.
— Laws 2010, ch. 53 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective May 19, 2010, 90 days after the adjournment of the legislature.
Applicability.
— Laws 2010, ch. 53, § 19 provided that the provisions of this act are applicable to taxable years beginning on or after January 1, 2011.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3 - Income Tax Withholding › Section 7-3-14 - Composite returns.

A. A pass-through entity may file a composite income tax return on behalf of electing nonresident members reporting and paying income tax at the highest marginal rate provided in Section 7-2A-5 NMSA 1978 on the members' pro rata or distributive shares of income of the pass-through entity from doing business in, or deriving income from sources within, this state.
B. A nonresident member whose only source of income within a state is from one or more pass-through entities may elect to be included in a composite income tax return filed pursuant to this section.
C. A nonresident member that has been included in a composite income tax return may file an individual income tax return and shall receive credit for tax paid on the member's behalf by the pass-through entity.
D. As used in this section:
(1) "pass-through entity" means a corporation that for the applicable tax year is treated as an S corporation pursuant to Section 1362(a) of the Internal Revenue Code and any entity with one or more members that is not taxed as a corporation pursuant to Subchapter C of the Internal Revenue Code;
(2) "member" means a shareholder of an S corporation; a partner in a general partnership, a limited partnership or a limited liability partnership; a member of a limited liability company; or a beneficiary of a trust; and
(3) "nonresident" means an individual who is not a resident of or domiciled in the state, a business entity that does not have its commercial domicile in the state or a trust not organized in the state.
History:
Laws 2021, ch. 83, § 5.
ANNOTATIONS
Effective dates.
— Laws 2021, ch. 83, § 7 made Laws 2021, ch. 83, § 5 effective January 1, 2022.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3A - Oil and Gas Proceeds and Pass-Through Entity Withholding Tax › Section 7-3A-1 - Short title.

Chapter 7, Article 3A NMSA 1978 may be referred to as the "Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act".
History:
1978 Comp., § 7-3A-1, enacted by Laws 2003, ch. 86, § 4; 2010, ch. 53, § 8.
ANNOTATIONS
The 2010 amendment,
effective May 19, 2010, added "and Pass-Through Entity".
Applicability.
— Laws 2010, ch. 53, § 19 provided that the provisions of this act are applicable to taxable years beginning on or after January 1, 2011.