Receipts from charges made in connection with the origination, making or assumption of a loan or from charges made for handling loan payments may be deducted from gross receipts.
History: 1978 Comp., § 7-9-61.1, enacted by Laws 1981, ch. 37, § 52.
ANNOTATIONSEffective dates. — Laws 1981, ch. 37, § 99 made Laws 1981, ch. 37, § 52 effective January 1, 1982.
"Charges made for handling loan payments". — The phrase "charges made for handling loan payments", as used in this section, does not encompass charges made by taxpayers for their escrow services in connection with installment payments on real estate contracts. The legislature intended to allow the deduction from gross receipts only for typical loan transactions involving both a traditional lender and borrower. Any processing or collection charges typically made by either independent escrow agents, or banks acting as escrow agents, are not properly deductible from gross receipts. Security Escrow Corp. v. State Taxation & Revenue Dep't, 1988-NMCA-068, 107 N.M. 540, 760 P.2d 1306.