NMSA 1978, § 7-9-69 — 7-9-69

Deduction; gross receipts tax; administrative and
accounting services.

# A.

Receipts of a business entity for administrative, managerial, accounting and
customer services performed by it for an affiliate upon a nonprofit or cost basis and
receipts of a business entity from an affiliate for the joint use or sharing of office
machines and facilities upon a nonprofit or cost basis may be deducted from gross
receipts.

# B.

For the purposes of this section:
(1) "affiliate" means a business entity that directly or indirectly through one or
more intermediaries controls, is controlled by or is under common control with another
business entity;
(2) "business entity" means a corporation, limited liability company,
partnership, limited partnership, limited liability partnership or real estate investment
trust, but does not mean an individual or a joint venture; and
(3) "control" means equity ownership in a business entity that:
(a) represents at least fifty percent of the total voting power of that business
entity; or
(b) has a value equal to at least fifty percent of the total equity of that
business entity.