McVean & Barlow, Inc. v. New Mexico Bureau of Revenue

OPINION

HENDLEY, Judge.

Taxpayer appeals the order and decision of the Commissioner of Revenue assessing a deficiency on taxpayer’s corporate income tax for 1973. We reverse.

The question to be decided by this case is the meaning to be given to the term “business income” as it is used in the Uniform Division of Income for Tax Purposes Act (UDITPA) § 72-15A-16 to § 72-15A-36, N.M.S.A.1953 (2d Repl.Vol. 10, pt. 2, Supp.1973).

Section 72-15A-17(A), supra, provides:

“ * * * ‘Business income’ means income arising from transactions and activity in the regular course of the taxpayer’s trade or business…