Section 7-9-3(J) NMSA 1978 specifically defines certain types of intangible property (licenses other than licenses of copyrights, trademarks or patents and franchises) as property. If the intangible property identified in Section 7-9-3(J) NMSA 1978 is sold or licensed...
If an entity receives royalties for the license to use a franchise in New Mexico, the royalties are subject to gross receipts tax. If the taxpayer is: A C-corporation, it is also subject to corporate income tax (CIT) and corporate franchise tax An S-corporation, it is...
Section 7-4-19 NMSA 1978; regulation 3.5.19.15 applies to trucking companies and how they allocate and apportion their income to New Mexico. This regulation includes a de minimis nexus standard stating that any motor carrier traveling more than 25,000 mobile property...
Trucking companies that meet the de minimis nexus standard must file the appropriate tax returns with New Mexico. If the trucking company is a C-corporation, it files a CIT return and apportions income to New Mexico based on the regulation for calculating payroll,...
Representational nexus is created when a third party provides in-state services that exceed mere solicitation on behalf of out-of-state clients.
A corporation exercises its corporate franchise when it seeks to be treated or acts as a legal entity or person subject to the jurisdiction of and privileges provided by state law. Another term for a "corporate franchise" is a "corporate charter."
If the taxpayer has nexus with New Mexico, but the sales transaction is not subject to gross receipts tax, the taxpayer may be obligated to act as an agent for the collection of compensating tax. By New Mexico law, Section 7-9-10 NMSA 1978 the taxpayer is required to...
In New Mexico, "engaging in business" means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit.
Federal P.L. 86-272 does not provide immunity from the corporate franchise tax. New Mexico’s corporate franchise tax is imposed on all domestic and foreign corporations, including S corporations, that engage in business in New Mexico or exercise their corporate...
De minimis activities are those that, when taken together, establish only a trivial connection with the taxing state. An activity regularly conducted within a taxing state according to a company policy or on a continuous basis is normally not considered trivial.