Section 7-9-56.3 - Deduction; gross receipts; trade-support company in a border zone. - New Mexico Statutes

7-9-56.3. Deduction; gross receipts; trade-support company in a border zone.

A.     The receipts of a trade-support company may be deducted from gross receipts if: 

(1)     the trade-support company first locates in New Mexico within twenty miles of a port of entry on New Mexico's border with Mexico on or after July 1, 2003 but before July 1, 2013; 

(2)     the receipts are received by the company within a five-year period beginning on the date the trade-support company locates in New Mexico and the receipts are derived from its business activities and operations at its border zone location; and 

(3)     the trade-support company employs at least two employees in New Mexico.  

B.     As used in this section: 

(1)     "employee" means an individual, other than an individual who: 

(a)     bears any of the relationships described in Paragraphs (1) through (8) of 26 U.S.C. Section 152(a) to the employer or, if the employer is a corporation, to an individual who owns, directly or indirectly, more than fifty percent in value of the outstanding stock of the corporation or, if the employer is an entity other than a corporation, to an individual who owns, directly or indirectly, more than fifty percent of the capital and profits interests in the entity; 

(b)     if the employer is an estate or trust, is a grantor, beneficiary or fiduciary of the estate or trust or is an individual who bears any of the relationships described in Paragraphs (1) through (8) of 26 U.S.C. Section 152(a) to a grantor, beneficiary or fiduciary of the estate or trust; or  

(c)     is a dependent, as that term is described in 26 U.S.C. Section 152(a)(9), of the employer, or, if the taxpayer is a corporation, of an individual who owns, directly or indirectly, more than fifty percent in value of the outstanding stock of the corporation or, if the employer is an entity other than a corporation, an individual who owns, directly or indirectly, more than fifty percent of the capital and profits interests in the entity or, if the employer is an estate or trust, of a grantor, beneficiary or fiduciary of the estate or trust; 

(2)     "port of entry" means an international port of entry in New Mexico at which customs services are provided by United States customs and border protection; and 

(3)     "trade-support company" means a customs brokerage firm or a freight forwarder.