Legislature To Consider Business, Land-Use Bills

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Feb 5, 2001

Santa Fe, New Mexico-To the consternation of out-of-statefranchisors, the New Mexico Court of Appeals recently determinedthat service fees collected from franchise outlets in New Mexicoare subject to the state's gross-receipts tax. However, duringthe upcoming session of the state legislature, a new bill isexpected to be introduced that will reverse the court's rulingby allowing out-of-state corporations a gross-receipts taxreduction for services such as marketing and training rendered tofranchisees in New Mexico. -The Santa Fe New Mexican

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