us-nm/stat
NMSA 1978, § 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.
Source: official text