Nexus

Are royalties derived from intangible property subject to tax?

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...

read more

What is representational nexus?

Representational nexus is created when a third party provides in-state services that exceed mere solicitation on behalf of out-of-state clients.

read more

What is de minimis activity?

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.

read more