Legislature To Consider Business, Land-Use Bills

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Santa Fe, New Mexico-To the consternation of out-of-state franchisors, the New Mexico Court of Appeals recently determined that service fees collected from franchise outlets in New Mexico are subject to the state's gross-receipts tax. However, during the upcoming session of the state legislature, a new bill is expected to be introduced that will reverse the court's ruling by allowing out-of-state corporations a gross-receipts tax reduction for services such as marketing and training rendered to franchisees in New Mexico. -The Santa Fe New Mexican

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