52.229-10 State of New Mexico Gross

Receipts and Compensating Tax.

As prescribed in 29.401-4(b), insert the following clause:

State of New Mexico Gross Receipts and Compensating Tax (Apr 2003)

(a) Within thirty (30) days after award of this contract, the Contractor shall advise the State of New

Mexico of this contract by registering with the State of New Mexico, Taxation and Revenue

Department, Revenue Division, pursuant to the Tax Administration Act of the State of New Mexico

and shall identify the contract number.

(b) The Contractor shall pay the New Mexico gross receipts taxes, pursuant to the Gross Receipts

and Compensating Tax Act of New Mexico, assessed against the contract fee and costs paid for

performance of this contract, or of any part or portion thereof, within the State of New Mexico. The

allowability of any gross receipts taxes or local option taxes lawfully paid to the State of New Mexico

by the Contractor or its subcontractors will be determined in accordance with the Allowable Cost

and Payment clause of this contract except as provided in paragraph (d) of this clause.

(c) The Contractor shall submit applications for Nontaxable Transaction Certificates, FormCSR-3 C,

to the:

State of New Mexico Taxation and Revenue Dept. Revenue Division PO Box 630 Santa Fe, New

Mexico 87509

When the Type 15 Nontaxable Transaction Certificate is issued by the Revenue Division, the

Contractor shall use these certificates strictly in accordance with this contract, and the agreement

between the (*________________) and the New Mexico Taxation and Revenue Department.

(d) The Contractor shall provide Type 15 Nontaxable Transaction Certificates to each vendor in New

Mexico selling tangible personal property to the Contractor for use in the performance of this

contract. Failure to provide a Type 15 Nontaxable Transaction Certificate to vendors will result in

the vendor’s liability for the gross receipt taxes and those taxes, which are then passed on to the

Contractor, shall not be reimbursable as an allowable cost by the Government.

(e) The Contractor shall pay the New Mexico compensating user tax for any tangible personal

property which is purchased pursuant to a Nontaxable Transaction Certificate if such property is not

used for Federal purposes.

(f) Out-of-state purchase of tangible personal property by the Contractor which would be otherwise

subject to compensation tax shall be governed by the principles of this clause. Accordingly,

compensating tax shall be due from the contractor only if such property is not used for Federal

purposes.

(g) The (*_______________) may receive information regarding the Contractor from the Revenue

Division of the New Mexico Taxation and Revenue Department and, at the discretion of the

(*_________________), may participate in any matters or proceedings pertaining to this clause or the

abovementioned Agreement. This shall not preclude the Contractor from having its own

representative nor does it obligate the (*______________) to represent its Contractor.
(h) The Contractor agrees to insert the substance of this clause, including this paragraph (h), in each

subcontract which meets the criteria in 29.401-4(b)(1) through (3) of the Federal Acquisition

Regulation, 48 CFR Part 29.

(i) Paragraphs (a) through (h) of this clause shall be null and void should the Agreement referred to

in paragraph (c) of this clause be terminated; provided, however, that such termination shall not

nullify obligations already incurred prior to the date of termination.

[*Insert appropriate agency name in blanks.]

(End of clause)

Parent topic: 52.229 [Reserved]