reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3A - Oil and Gas Proceeds and Pass-Through Entity Withholding Tax › Section 7-3A-4 - Deductions considered taxes.

Amounts deducted under the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act are a collected tax. A remittee who receives payment of oil and gas proceeds or an owner with an allocable share of net income does not have a right of action against the remitter or pass-through entity for the amount deducted and withheld from the oil and gas proceeds or an allocable share of net income.
History:
1978 Comp., § 7-3A-4, enacted by Laws 2003, ch. 86, § 7; 2010, ch. 53, § 11; 2012, ch. 40, § 3.
ANNOTATIONS
The 2012 amendment,
effective May 16, 2012, measured net income by allocable shares and in the second sentence, after "or an owner with", deleted "a" and added "an allocable" and after the "gas proceeds or", added "an allocable share of".
Applicability.
— Laws 2012, ch. 40, § 8 provided that the provisions of Laws 2012, ch. 40, §§ 1 through 7 are applicable to taxable years beginning on or after January 1, 2012.
The 2010 amendment,
effective May 19, 2010, in the first sentence, added "and Pass-Through Entity" and in the second sentence , after "payment of oil and gas proceeds", added "or an owner with a share of net income"; after "against the remitter", added "or pass-through entity"; and after "withheld from oil and gas proceeds", added "or net income".
Temporary provisions.
— Laws 2010, ch. 53, § 17 provided that for a taxable year beginning on or after January 1, 2011, but before January 1, 2012, no remitter or pass-through entity shall be subject to the penalty imposed pursuant to Section 7-1-69 NMSA 1978 for failure to comply with the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3A - Oil and Gas Proceeds and Pass-Through Entity Withholding Tax › Section 7-3A-5 - Remitters and pass-through entities liable for amounts deducted and withheld; exceptions.

A. Every remitter or pass-through entity is liable for:
(1) amounts required to be deducted and withheld by the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act regardless of whether the amounts were in fact deducted and withheld; and
(2) for the amounts that a remittee or an owner has agreed to remit pursuant to Subsection G of Section 7-3A-3 NMSA 1978, once the department has notified the remitter or pass-through entity that the remittee or owner has failed to remit.
B. A remitter or pass-through entity is not liable for amounts required to be deducted and withheld by the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act but not deducted or withheld if:
(1) the remitter or pass-through entity fails to deduct and withhold the required amounts and if the tax against which the required amounts would have been credited is paid; or
(2) the remitter's or pass-through entity's failure to deduct and withhold the required amounts is due to reasonable cause.
History:
1978 Comp., § 7-3A-5, enacted by Laws 2003, ch. 86, § 8; 2010, ch. 53, § 12; 2012, ch. 40, § 4.
ANNOTATIONS
The 2012 amendment,
effective May 16, 2012, eliminated changes in net income for federal income tax purposes as an exception to liability for withholding and deleted former Subsection C, which provided that changes in net income due to a timely election for federal income tax purposes was reasonable cause for failing to withhold.
Applicability.
— Laws 2012, ch. 40, § 8 provided that the provisions of Laws 2012, ch. 40, §§ 1 through 7 are applicable to taxable years beginning on or after January 1, 2012.
The 2010 amendment,
effective May 19, 2010, in the catchline, changed "Remitter" to "Remitters and pass-through entities"; in Subsection A, in the introductory sentence, added "or pass-through entity"; in Subsection A(1), after "Oil and Gas Proceeds", added "and Pass-Through Entity" and after "deducted and withheld", deleted "except that" and added "and"; added Paragraph (2) of Subsection A; added the introductory sentence of Subsection B; in Subsection B(1), after "the remitter", added "or pass-through entity" and after "have been credited is paid", deleted "the remitter shall not be liable for those amounts not deducted and withheld"; in Subsection B(2), after "the remitter's", added "or pass-through entity's" and after "reasonable cause", deleted "such as reliance on addresses supplied by remittees, the remitter shall not be liable for amounts not deducted and withheld"; and added Subsection C.
Temporary provisions.
— Laws 2010, ch. 53, § 17 provided that for a taxable year beginning on or after January 1, 2011, but before January 1, 2012, no remitter or pass-through entity shall be subject to the penalty imposed pursuant to Section 7-1-69 NMSA 1978 for failure to comply with the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3A - Oil and Gas Proceeds and Pass-Through Entity Withholding Tax › Section 7-3A-6 - Date payment due; form.

A. Amounts withheld under the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act by a remitter are due on or before the twenty-fifth day of the month following the end of the calendar quarter when the taxes were required to be withheld.
B. Amounts withheld under the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act by a pass-through entity are due on or before the due date of the federal tax return required for the pass-through entity.
C. The amount withheld shall be remitted on a form and in a manner required by the department, provided that amounts withheld and remitted from oil and gas proceeds are kept distinct from every other tax or withheld amount.
History:
1978 Comp., § 7-3A-6, enacted by Laws 2003, ch. 86, § 9; 2010, ch. 53, § 13; 2012, ch. 40, § 5.
ANNOTATIONS
The 2012 amendment,
effective May 16, 2012, established a payment due date and added a new Subsection B and relettered former Subsection B as Subsection C.
Applicability.
— Laws 2012, ch. 40, § 8 provided that the provisions of Laws 2012, ch. 40, §§ 1 through 7 are applicable to taxable years beginning on or after January 1, 2012.
The 2010 amendment,
effective May 19, 2010, in Subsection A, after the phrase "Oil and Gas Proceeds", adds the phrase "and Pass-Through Entity".
Temporary provisions.
— Laws 2010, ch. 53, § 17 provided that for a taxable year beginning on or after January 1, 2011, but before January 1, 2012, no remitter or pass-through entity shall be subject to the penalty imposed pursuant to Section 7-1-69 NMSA 1978 for failure to comply with the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3A - Oil and Gas Proceeds and Pass-Through Entity Withholding Tax › Section 7-3A-8 - Withheld amounts credited against income tax.

The entire amount of oil and gas proceeds and an allocable share of net income upon which the tax was deducted and withheld or upon which payments were made by owners in lieu of withholding shall be included in the base income of the remittee for purposes of the Income Tax Act [Chapter 7, Article 2 NMSA 1978] and the Corporate Income and Franchise Tax Act [Chapter 7, Article 2A NMSA 1978]. The amount of tax deducted and withheld or payments made by owners in lieu of withholding pursuant to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act during the taxable year shall be credited against any income tax or corporate income tax due from the remittee or owner.
History:
1978 Comp., § 7-3A-8, enacted by Laws 2003, ch. 86, § 11; 2010, ch. 53, § 15; 2012, ch. 40, § 7.
ANNOTATIONS
The 2012 amendment,
effective May 16, 2012, measured net income by allocable shares and in the first sentence, after "gas proceeds and", added "an allocable share of".
Applicability.
— Laws 2012, ch. 40, § 8 provided that the provisions of Laws 2012, ch. 40, §§ 1 through 7 are applicable to taxable years beginning on or after January 1, 2012.
The 2010 amendment,
effective May 19, 2010, in the first sentence, after "oil and gas proceeds", added "and net income" and after "deducted and withheld", added "or upon which payments were made by owners in lieu of withholding"; and in the second sentence, after "deducted and withheld", added "or payments made by owners in lieu of withholding"; after "Oil and Gas Proceeds", added "and Pass-Through Entity; and after "tax due from the remittee", added "or owner".
Temporary provisions.
— Laws 2010, ch. 53, § 17 provided that for a taxable year beginning on or after January 1, 2011, but before January 1, 2012, no remitter or pass-through entity shall be subject to the penalty imposed pursuant to Section 7-1-69 NMSA 1978 for failure to comply with the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 3A - Oil and Gas Proceeds and Pass-Through Entity Withholding Tax › Section 7-3A-9 - Interpretation of act; administration and enforcement of act; report to legislature.

A. The department shall interpret the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.
B. The department shall administer and enforce the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act, and the Tax Administration Act [Chapter 7, Article 1 NMSA 1978] applies to the administration and enforcement of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.
C. No later than December 1 of each year, the department shall submit a report to the legislature showing:
(1) the total amount of taxes withheld by remitters and paid to the department during the previous calendar year pursuant to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act; and
(2) the amount of taxes withheld by remitters pursuant to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act that were credited against income taxes or corporate income taxes by remittees during the previous calendar year.
History:
1978 Comp., § 7-3A-9, enacted by Laws 2003, ch. 86, § 12; 2010, ch. 53, § 16; 2011, ch. 139, § 1.
ANNOTATIONS
The 2011 amendment,
effective June 17, 2011, added Subsection C to require the department to submit a report to the legislature relating to the amount of taxes withheld from oil and gas proceeds.
The 2010 amendment,
effective May 19, 2010, in Subsection A, added "and Pass-Through Entity"; and in Subsection B, after "enforce the Oil and Gas Proceeds", added "and Pass-Through Entity" and after "enforcement of the Oil and Gas Proceeds", added "and Pass-Through Entity".
Temporary provisions.
— Laws 2010, ch. 53, § 17 provided that for a taxable year beginning on or after January 1, 2011, but before January 1, 2012, no remitter or pass-through entity shall be subject to the penalty imposed pursuant to Section 7-1-69 NMSA 1978 for failure to comply with the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.
Applicability.
— Laws 2010, ch. 53, § 19 provided that the provisions of this act are applicable to taxable years beginning on or after January 1, 2011.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-1 - Short title.

Chapter 7, Article 4 NMSA 1978 may be cited as the "Uniform Division of Income for Tax Purposes Act".
History:
1953 Comp., § 72-15A-16, enacted by Laws 1965, ch. 203, § 1; 1981, ch. 37, § 47.
ANNOTATIONS
Law reviews.
— For article, "New Mexico Taxes: Taking Another Look," see 32 N.M.L. Rev. 351 (2002).
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Construction and application of Uniform Division of Income for Tax Purposes Act, 8 A.L.R.4th 934.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-3 - Allocation and apportionment of income in general.

Except as otherwise provided by law any taxpayer having income which is taxable both within and without this state, other than the rendering of purely personal services by an individual shall allocate and apportion his net income as provided in the Uniform Division of Income for Tax Purposes Act.
History:
1953 Comp., § 72-15A-18, enacted by Laws 1965, ch. 203, § 3; 1981, ch. 37, § 48.
ANNOTATIONS
Cross references.
— For income allocation and apportionment,
see
7-2-11 NMSA 1978.
For Multistate Tax Compact,
see
7-5-1 NMSA 1978 et seq.
Constitutionality of apportionment.
— The United States Constitution does not impose any single method of apportionment on a multistate or multinational taxpayer's income.
NCR Corp. v. Taxation & Revenue Dep't
, 1993-NMCA-060, 115 N.M. 612, 856 P.2d 982, cert. denied, 115 N.M. 677, 857 P.2d 788, cert. denied, 512 U.S. 1245, 114 S. Ct. 2763, 129 L. Ed. 2d 877 (1994).
Factors pertinent in determining if income is business income.
— Pertinent in determining whether income arises from transactions in the regular course of business is the nature of the particular transaction and former practices of the business entity; also pertinent is how the income is used.
Champion Int'l Corp. v. Bureau of Revenue
, 1975-NMCA-106, 88 N.M. 411, 540 P.2d 1300, cert. denied, 89 N.M. 5, 546 P.2d 70 (specially concurring opinion).
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 394, 456, 483, 491 to 493, 569 to 577, 581.
85 C.J.S. Taxation §§ 1694 et seq., 1715 et seq., 1756 to 1759.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-4 - When taxable in another state.

For purposes of allocation and apportionment of income under the Uniform Division of Income for Tax Purposes Act, a taxpayer is taxable in another state if:
A. in that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or
B. that state has jurisdiction to subject the taxpayer to a net income tax, regardless of whether the state does or does not.
History:
1953 Comp., § 72-15A-19, enacted by Laws 1965, ch. 203, § 4.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 4 effective January 1, 1966.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 471, 542.
What suits at domicile of corporation involving corporate stock or rights and obligations incident thereto are in rem, jurisdiction in which may rest upon constructive service of process against nonresidents, 145 A.L.R. 1393.
Income tax on nonresident or on foreign corporation, 156 A.L.R. 1370.
84 C.J.S. Taxation §§ 38, 72, 92 to 93, 112 to 115, 165, 177 to 180; 85 C.J.S. Taxation §§ 1693, 1701 to 1705, 1715 to 1719.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-5 - Allocation of certain nonbusiness income.

Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in Sections 6 through 9 [7-4-6 to 7-4-9 NMSA 1978] of the Uniform Division of Income for Tax Purposes Act.
History:
1953 Comp., § 72-15A-20, enacted by Laws 1965, ch. 203, § 5.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 5 effective January 1, 1966.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 195, 196, 365, 554, 572, 574, 659.
84 C.J.S. Taxation §§ 90, 112 to 115, 123 to 124, 149, 163 to 164; 85 C.J.S. Taxation §§ 1191, 1721 to 1735, 1719, 1756 to 1759.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-6 - Allocation of rents and royalties.

A. Net rents and royalties from real property located in this state are allocable to this state.
B. Net rents and royalties from tangible personal property are allocable to this state:
(1) if and to the extent that the property is utilized in this state; or
(2) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
C. The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
History:
1953 Comp., § 72-15A-21, enacted by Laws 1965, ch. 203, § 6.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 6 effective January 1, 1966.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 190, 195, 196, 264, 265, 658 to 665.
Solid mineral royalty as real or personal property, 68 A.L.R.2d 728.
Effect of § 26 of Uniform Partnership Act as converting realty into personalty, 80 A.L.R.2d 1107.
84 C.J.S. Taxation §§ 92 to 94, 112 to 115.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-7 - Allocation of capital gains and losses.

A. Capital gains and losses from sales of real property located in this state are allocable to this state.
B. Capital gains and losses from sales of tangible personal property are allocable to this state if:
(1) the property had a situs in this state at the time of the sale; or
(2) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
C. Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
History:
1953 Comp., § 72-15A-22, enacted by Laws 1965, ch. 203, § 7.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 7 effective January 1, 1966.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 553 to 556.
Capital gain or loss on failure to exercise an option or privilege, 36 A.L.R.2d 1391.
Modern views as to capital gains or ordinary income treatment of profit on sale of subdivided realty which is asserted to be "capital asset" under § 1221 of the Internal Revenue Code of 1954 (26 USCS § 1221), 45 A.L.R. Fed. 292.
84 C.J.S. Taxation §§ 11, 148, 151 to 164, 172 to 173, 227, 231 to 234, 237, 404, 406, 419 to 420; 85 C.J.S. Taxation §§ 1721 to 1725.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-8 - Allocation of interest and dividends.

Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.
History:
1953 Comp., § 72-15A-23, enacted by Laws 1965, ch. 203, § 8.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 8 effective January 1, 1966.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 664, 665, 667, 677, 680.
84 C.J.S. Taxation §§ 227, 231 to 234, 237.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-9 - Allocation of patent and copyright royalties.

A. Patent and copyright royalties are allocable to this state:
(1) if and to the extent that the patent or copyright is utilized by the payer in this state; or
(2) if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
B. A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
C. A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
History:
1953 Comp., § 72-15A-24, enacted by Laws 1965, ch. 203, § 9.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 9 effective January 1, 1966.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 664, 665, 667, 677, 680.
Power of state to tax royalties from patents, 55 A.L.R. 931.
84 C.J.S. Taxation §§ 227, 231 to 234, 237.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-11 - Property factor for apportionment of business income.

The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.
History:
1953 Comp., § 72-15A-26, enacted by Laws 1965, ch. 203, § 11.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 11 effective January 1, 1966.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 190, 202, 208, 218, 220, 658 to 665.
Situs as between different states or countries of tangible chattels for purposes of property taxation, 110 A.L.R. 707.
84 C.J.S. Taxation §§ 92 to 94, 112 to 115, 153 to 157, 172 to 173, 397 to 401, 416.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-12 - Valuation of property for inclusion in property factor.

Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rate is the annual rental paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.
History:
1953 Comp., § 72-15A-27, enacted by Laws 1965, ch. 203, § 12.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 12 effective January 1, 1966.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-13 - Determination of average value of property for inclusion in property factor.

The average value of property shall be determined by averaging the values at the beginning and ending of the tax period, but the department may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer's property.
History:
1953 Comp., § 72-15A-28, enacted by Laws 1965, ch. 203, § 13; 1986, ch. 20, § 56.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-14 - Payroll factor for apportionment of business income.

The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period.
History:
1953 Comp., § 72-15A-29, enacted by Laws 1965, ch. 203, § 14.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 14 effective January 1, 1966.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-15 - Determination of compensation for inclusion in payroll factor.

Compensation is paid in this state if:
A. the individual's service is performed entirely within the state; or
B. the individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state; or
C. some of the service is performed in the state and:
(1) the base of operations, or, if there is no base of operations, the place from which the service is directed or controlled is in the state; or
(2) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
History:
1953 Comp., § 72-15A-30, enacted by Laws 1965, ch. 203, § 15.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 15 effective January 1, 1966.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-16 - Sales factor for apportionment of business income.

The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
History:
1953 Comp., § 72-15A-31, enacted by Laws 1965, ch. 203, § 16.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 16 effective January 1, 1966.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-17 - Determination of sales in this state of tangible personal property for inclusion in sales factor.

Sales of tangible personal property are in this state if:
A. the property is delivered or shipped to a purchaser other than the United States government within this state regardless of the f. o. b. point or other conditions of the sale; or
B. the property is shipped from an office, store, warehouse, factory or other place of storage in this state and:
(1) the purchaser is the United States government; or
(2) the taxpayer:
(a) is not taxable in the state of the purchaser; and
(b) did not make an election for apportionment of business income pursuant to Subsection B or C of Section 7-4-10 NMSA 1978.
History:
1953 Comp., § 72-15A-32, enacted by Laws 1965, ch. 203, § 17; 2013, ch. 160, § 8; 2015 (1st S.S.), ch. 2, § 7.
ANNOTATIONS
The 2015 (1st S.S.) amendment,
effective September 6, 2015, amended the qualifications for the determination of sales of tangible personal property in this state; in Subparagraph B(2)(b), after "Subsection B", added "or C".
Applicability.
— Laws 2015 (1st S.S.), ch. 2, § 25 provided that Laws 2015 (1st S.S.), ch. 2, § 7 apply to taxable years beginning on or after January 1, 2015.
The 2013 amendment,
effective January 1, 2014, excluded certain sales from being apportioned as sales in New Mexico; and added Subparagraph (b) of Paragraph (2) of Subsection B.
Applicability.
— Laws 2013, ch. 160, § 14 provided that Laws 2013, ch. 160, § 8 applies to taxable years beginning on or after January 1, 2014.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 195, 196.
84 C.J.S. Taxation §§ 92 to 94, 112 to 115, 155 to 157, 172 to 173, 397 to 401, 416.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-18 - Determination of sales in this state of other than tangible personal property for inclusion in sales factor.

A. Sales, other than sales described in Section 7-4-17 NMSA 1978, are in this state:
(1) in the case of sale, rental, lease or license of real property, if and to the extent the real property is located in this state;
(2) in the case of rental, lease or license of tangible personal property, if and to the extent the tangible personal property is located in this state;
(3) in the case of sale of a service, if and to the extent the service is delivered to a location in this state; and
(4) in the case of sale, rental, lease or license of intangible property, if and to the extent the intangible property is used in this state.
B. If the state or states of assignment under Subsection A of this section cannot be determined, the state or states of assignment shall be reasonably approximated.
C. If the taxpayer is not taxable in a state to which a sale is assigned pursuant to Subsection A of this section or if the state of assignment cannot be determined or reasonably approximated pursuant to Subsection B of this section, that sale shall be excluded from the numerator and denominator of the sales factor.
D. The department may promulgate rules as necessary or appropriate to carry out the purposes of this section.
History:
1953 Comp., § 72-15A-33, enacted by Laws 1965, ch. 203, § 18; 2019, ch. 270, § 22.
ANNOTATIONS
The 2019 amendment,
effective January 1, 2020, revised provisions related to the determination of sales in this state; in the section heading, added "services and", and deleted "than tangible personal"; in Subsection A, after "other than sales", deleted "of tangible personal property" and added "described in Section 7-4-17 NMSA 1978", and added Paragraphs A(1) through A(4); and deleted former Subsections A and B and added new Subsections B through D.
Applicability.
— Laws 2019, ch. 270, § 59 provided that the provisions of Sections 16 through 22 and 58 of Laws 2019, ch. 270 apply to taxable years beginning on or after January 1, 2020.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 195, 196.
84 C.J.S. Taxation §§ 92 to 94, 112 to 115, 155 to 157, 172 to 173, 397 to 401, 416.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-20 - Agreements authorized in unusual cases.

In circumstances within the scope of Section 7-4-19 NMSA 1978 and in other circumstances where the revenues of this state would not be adversely affected, the secretary is authorized to enter into an agreement in writing with any person with respect to apportionment and allocation of that person's income. Except upon a showing of fraud or misrepresentation of a material fact or a change in the statutory law, such agreement shall be conclusive. Any agreement, however, may be terminated by either party by written notice thereof to the other party at least ninety days before the beginning of the taxable year to which the termination applies.
History:
1953 Comp., § 72-15A-35, enacted by Laws 1965, ch. 203, § 20; 1981, ch. 37, § 49; 1986, ch. 20, § 58.
ANNOTATIONS
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 71 Am. Jur. 2d State and Local Taxation §§ 7, 597; 72 Am. Jur. 2d State and Local Taxation § 833.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 4 - Division of Income for Tax Purposes › Section 7-4-21 - Construction of act.

The Uniform Division of Income for Tax Purposes Act shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.
History:
1953 Comp., § 72-15A-36, enacted by Laws 1965, ch. 203, § 21.
ANNOTATIONS
Effective dates.
— Laws 1965, ch. 203, § 22 made Laws 1965, ch. 203, § 21 effective January 1, 1966.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5 - Multistate Tax Compact › Section 7-5-2 - Election of alternative tax.

Any person:
A. who is required by the Income Tax Act [Chapter 7, Article 2 NMSA 1978] or the Corporate Income and Franchise Tax Act [Chapter 7, Article 2A NMSA 1978] to file a return;
B. whose only activities in New Mexico consist of making sales;
C. who does not own or rent real estate within the state of New Mexico; and
D. whose annual gross sales in or into New Mexico amount to not more than one hundred thousand dollars ($100,000) may elect to pay a tax of three-fourths of one percent of his annual gross receipts derived from sales in or into New Mexico in lieu of paying an income tax.
History:
1953 Comp., § 72-15A-38, enacted by Laws 1967, ch. 56, § 2; 1971, ch. 20, § 4; 1981, ch. 37, § 50; 1987, ch. 277, § 6.
ANNOTATIONS
Cross references.
— For compact provisions relating to alternative tax,
see
Article III 2 of 7-5-1 NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5 - Multistate Tax Compact › Section 7-5-3 - Appointment of multistate tax commission member.

The governor shall appoint the member of the multistate tax commission to represent New Mexico from among the persons made eligible by Article VI 1(a) of the compact [7-5-1 NMSA 1978].
History:
1953 Comp., § 72-15A-39, enacted by Laws 1967, ch. 56, § 3.
ANNOTATIONS
Effective dates.
— Laws 1967, ch. 56 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 1967, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5 - Multistate Tax Compact › Section 7-5-4 - Alternate designated by commissioner.

The member representing New Mexico on the multistate tax commission may be represented thereon by an alternate designated by him. Any such alternate shall be a principal deputy or assistant of the member of the commission in the agency which the member heads.
History:
1953 Comp., § 72-15A-40, enacted by Laws 1967, ch. 56, § 4.
ANNOTATIONS
Effective dates.
— Laws 1967, ch. 56 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 1967, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5 - Multistate Tax Compact › Section 7-5-5 - Counsel to be designated.

The member of the commission for New Mexico shall designate either the attorney general, one of the attorney general's assistants, or special counsel working for the agency of which the member is head, as his counsel in respect to his functions as a member of the multistate tax commission.
History:
1953 Comp., § 72-15A-41, enacted by Laws 1967, ch. 56, § 5.
ANNOTATIONS
Effective dates.
— Laws 1967, ch. 56 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 1967, 90 days after the adjournment of the legislature.
Cross references.
— For legal adviser to secretary of taxation and revenue,
see
9-11-11 NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5 - Multistate Tax Compact › Section 7-5-6 - Local government advisors.

The governor, after consultation with representatives of local governments, shall appoint three persons who are representative of subdivisions affected or likely to be affected by the Multistate Tax Compact. The member of the commission representing New Mexico, and any alternate designated by him, shall consult regularly with these appointees, in accordance with Article VI 1(b) of the compact.
History:
1953 Comp., § 72-15A-42, enacted by Laws 1967, ch. 56, § 6.
ANNOTATIONS
Effective dates.
— Laws 1967, ch. 56 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 1967, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5 - Multistate Tax Compact › Section 7-5-7 - Interaudits provisions made applicable.

Article VIII of the Multistate Tax Compact relating to interaudits shall be in force in and with respect to New Mexico.
History:
1953 Comp., § 72-15A-44, enacted by Laws 1967, ch. 56, § 8.
ANNOTATIONS
Effective dates.
— Laws 1967, ch. 56 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 16, 1967, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5A - Streamlined Sales and Use Tax Administration › Section 7-5A-1 - Short title.

This act may be cited as the "Streamlined Sales and Use Tax Administration Act".
History:
Laws 2005, ch. 225, § 1.
ANNOTATIONS
Effective dates.
— Laws 2005, ch. 225 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 17, 2005, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5A - Streamlined Sales and Use Tax Administration › Section 7-5A-2 - Legislative findings.

The legislature finds that a simplified sales tax and use tax system that treats transactions in a competitively neutral manner will strengthen and preserve sales taxes and use taxes as vital revenue sources for this state and its local governments and will help preserve the fiscal sovereignty of this state. The legislature also finds that such a system will substantially reduce the administrative burdens of collection for sellers. While states have the sovereign right to set their own tax policies, states should cooperatively develop a streamlined sales tax and use tax system that is simplified, uniform and fair.
History:
Laws 2005, ch. 225, § 2.
ANNOTATIONS
Effective dates.
— Laws 2005, ch. 225 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 17, 2005, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5A - Streamlined Sales and Use Tax Administration › Section 7-5A-3 - Definitions.

As used in the Streamlined Sales and Use Tax Administration Act:
A. "agreement" means the streamlined sales and use tax agreement;
B. "certified automated system" means software certified jointly by member states to:
(1) calculate the sales tax imposed by each jurisdiction on a transaction;
(2) determine the amount of tax to remit to the appropriate state; and
(3) maintain a record of the transaction;
C. "certified service provider" means an agent that performs all of the sales tax functions of a seller and that is certified jointly by member states to perform all of the sales tax functions of the seller;
D. "member state" means a state of the United States that enters into the agreement with another state and the District of Columbia if it enters into the agreement with another state;
E. "person" means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation and any other legal entity;
F. "sales tax" means the gross receipts tax levied pursuant to the Gross Receipts and Compensating Tax Act [Chapter 7, Article 9 NMSA 1978] or a tax imposed by a state on the sale of goods or services;
G. "seller" means a person making sales, leases and rentals of personal property and services; and
H. "use tax" means the compensating tax levied pursuant to the Gross Receipts and Compensating Tax Act.
History:
Laws 2005, ch. 225, § 3.
ANNOTATIONS
Effective dates.
— Laws 2005, ch. 225 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 17, 2005, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5A - Streamlined Sales and Use Tax Administration › Section 7-5A-4 - Authority to enter agreement.

A. The secretary of taxation and revenue may enter into the agreement with one or more member states to simplify and modernize sales tax and use tax administration and to reduce the burden of tax compliance for sellers.
B. The secretary of taxation and revenue is authorized to:
(1) act jointly with member states to establish standards for a certified automated system and establish performance standards for multistate sellers pursuant to the agreement;
(2) take actions reasonably required to implement the provisions of the Streamlined Sales and Use Tax Administration Act; and
(3) adopt rules with member states pursuant to the agreement.
C. The secretary of taxation and revenue or the secretary's designee is authorized to represent this state before member states.
History:
Laws 2005, ch. 225, § 4.
ANNOTATIONS
Effective dates.
— Laws 2005, ch. 225 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 17, 2005, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5A - Streamlined Sales and Use Tax Administration › Section 7-5A-5 - Relationship to state law.

A provision of the agreement does not invalidate or amend any provision of state law. Implementation of a condition of the agreement shall be adopted by the legislature.
History:
Laws 2005, ch. 225, § 5.
ANNOTATIONS
Effective dates.
— Laws 2005, ch. 225 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 17, 2005, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5A - Streamlined Sales and Use Tax Administration › Section 7-5A-7 - Member states.

The agreement is an accord among member states in furtherance of their governmental functions. The agreement permits each member state to establish and maintain a cooperative, uniform, simplified system to apply sales taxes and use taxes pursuant to the law of the member state.
History:
Laws 2005, ch. 225, § 7.
ANNOTATIONS
Effective dates.
— Laws 2005, ch. 225 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 17, 2005, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5A - Streamlined Sales and Use Tax Administration › Section 7-5A-8 - Limited binding and beneficial effect.

A. The agreement binds and benefits only this state and other member states. Only a member state is an intended beneficiary of the agreement. A benefit to a person other than a member state is established by the law of this state and member states and not by the terms of the agreement.
B. A person shall not:
(1) have a cause of action or a defense pursuant to the agreement; and
(2) challenge an action or inaction of a department, agency, political subdivision or instrumentality of this state on the grounds that the action or inaction is not consistent with the agreement.
C. A law of this state or the application of the law is valid despite the inconsistency of the law or its application with the agreement.
History:
Laws 2005, ch. 225, § 8.
ANNOTATIONS
Effective dates.
— Laws 2005, ch. 225 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 17, 2005, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 5A - Streamlined Sales and Use Tax Administration › Section 7-5A-9 - Liability.

A. A certified service provider is liable for sales taxes and use taxes due from each member state on each sales transaction that it processes for the seller, except as otherwise provided by this section. A seller that contracts with the certified service provider is not liable to this state for sales tax or use tax due on a transaction processed by the certified service provider unless the seller misrepresents the type of item it sells or commits fraud. In the absence of probable cause that the seller has committed fraud or made a material misrepresentation, the seller is not subject to audit on transactions processed by the certified service provider. A seller is subject to audit for a transaction not processed by the certified service provider. Member states acting jointly may:
(1) audit data pertaining to the seller that is stored in the certified automated system; and
(2) review procedures of the seller to determine if the certified automated system functions properly and the extent to which the transactions of the seller are processed by this certified service provider.
B. A certified service provider is responsible for the proper functioning of a certified automated system and is liable to this state for underpayments of tax attributable to system errors. A seller that uses a certified automated system is liable to this state for reporting and remitting tax.
C. A seller that has a proprietary system for determining the amount of tax due on a transaction and has agreed to establish a performance standard for the system is liable for failure of the system to meet the standard.
History:
Laws 2005, ch. 225, § 9.
ANNOTATIONS
Effective dates.
— Laws 2005, ch. 225 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 17, 2005, 90 days after adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 6 - Banking and Financial Corporations Tax (Repealed.) › Section 7-6-1 to 7-6-9 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1981, ch. 37, § 97, repealed 7-6-1 to 7-6-9 NMSA 1978, relating to the Banking and Financial Corporations Tax Act, effective January 1, 1982. For present provisions relating to corporate income tax,
see
Chapter 7, Article 2A NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 7 - Estate Tax › Section 7-7-1 - Short title.

Sections 7-7-1 through 7-7-12 NMSA 1978 may be cited as the "Estate Tax Act".
History:
1953 Comp., § 72-33-1, enacted by Laws 1973, ch. 345, § 1; 1989, ch. 122, § 1.
ANNOTATIONS
Cross references.
— For provisions applicable to administration and enforcement,
see
7-1-2 and 7-7-10 NMSA 1978.
The 1989 amendment,
effective June 16, 1989, substituted "Sections 7-7-1 through 7-7-12 NMSA 1978" for "Sections 1 through 12 of this act".
Construction of tax statutes.
— Statutes imposing taxes and providing means for the collection of the same should be construed strictly insofar as they may operate to deprive the citizen of his property by summary proceedings or to impose penalties or forfeitures upon him; but otherwise tax laws ought to be construed with fairness, if not liberality, in order to carry out the intention of the legislature and further the important public interests which such statutes subserve.
NBS Corp. v. Valdez
, 1965-NMSC-027, 75 N.M. 379, 405 P.2d 224.
Law reviews.
— For symposium, "Tax Implications of the Equal Rights Amendment," see 3 N.M.L. Rev. 69 (1973).
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Construction and application of "pay-all-taxes" provision in will, as including liability of nontestamentary property for inheritance and estate taxes, 56 A.L.R.5th 133.