reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 8A - Uniform Unclaimed Property Act › Section 7-8A-23 - Interstate agreements and cooperation; joint and reciprocal actions with other states.

(a) The administrator may enter into an agreement with another state to exchange information relating to abandoned property or its possible existence. The agreement may permit the other state, or another person acting on behalf of a state, to examine records as authorized in Section 20 [7-8A-20 NMSA 1978] of the Uniform Unclaimed Property Act (1995). The administrator by rule may require the reporting of information needed to enable compliance with an agreement made under this section and prescribe the form.
(b) The administrator may join with another state to seek enforcement of the Uniform Unclaimed Property Act (1995) against any person who is or may be holding property reportable under that act.
(c) At the request of another state, the attorney general of this state may maintain an action on behalf of the other state to enforce, in this state, the unclaimed property laws of the other state against a holder of property subject to escheat or a claim of abandonment by the other state, if the other state has agreed to pay expenses incurred by the attorney general in maintaining the action.
(d) The administrator may request that the attorney general of another state or another attorney commence an action in the other state on behalf of the administrator. With the approval of the attorney general of this state, the administrator may retain any other attorney to commence an action in this state on behalf of the administrator. This state shall pay all expenses, including attorney's fees, in maintaining an action under this subsection. With the administrator's approval, the expenses and attorney's fees may be paid from money received under the Uniform Unclaimed Property Act (1995). The administrator may agree to pay expenses and attorney's fees based in whole or in part on a percentage of the value of any property recovered in the action. Any expenses or attorney's fees paid under this subsection may not be deducted from the amount that is subject to the claim by the owner under the Uniform Unclaimed Property Act (1995).
History:
Laws 1997, ch. 25, § 23.
ANNOTATIONS
Effective dates.
— Laws 1997, ch. 25, § 34 made Laws 1997, ch. 25, § 23 effective July 1, 1997.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 8A - Uniform Unclaimed Property Act › Section 7-8A-24 - Interest and penalties.

(a) A holder who fails to report, pay or deliver property within the time prescribed by the Uniform Unclaimed Property Act (1995) shall pay to the administrator interest at the annual rate set forth in Section 7-1-67 NMSA 1978 on the property or value thereof from the date the property should have been reported, paid or delivered.
(b) Except as otherwise provided in Subsection (c) of this section, a holder who fails to report, pay or deliver property within the time prescribed by the Uniform Unclaimed Property Act (1995), or fails to perform other duties imposed by that act, shall pay to the administrator, in addition to interest as provided in Subsection (a) of this section, a civil penalty of one hundred dollars ($100) for each day the report, payment or delivery is withheld, or the duty is not performed, up to a maximum of five thousand dollars ($5,000).
(c) A holder who willfully fails to report, pay or deliver property within the time prescribed by the Uniform Unclaimed Property Act (1995), or willfully fails to perform other duties imposed by that act, shall pay to the administrator, in addition to interest as provided in Subsection (a) of this section, a civil penalty of two hundred fifty dollars ($250) for each day the report, payment or delivery is withheld, or the duty is not performed, up to a maximum of seven thousand five hundred dollars ($7,500), plus twenty-five percent of the value of any property that should have been but was not reported.
(d) A holder who makes a fraudulent report shall pay to the administrator, in addition to interest as provided in Subsection (a) of this section, a civil penalty of five hundred dollars ($500) for each day from the date a report under the Uniform Unclaimed Property Act (1995) was due, up to a maximum of twelve thousand five hundred dollars ($12,500), plus twenty-five percent of the value of any property that should have been but was not reported.
(e) The administrator for good cause may waive, in whole or in part, penalties under Subsections (b) and (c) of this section, and shall waive penalties if the holder acted in good faith and without negligence.
History:
Laws 1997, ch. 25, § 24.
ANNOTATIONS
Effective dates.
— Laws 1997, ch. 25, § 34 made Laws 1997, ch. 25, § 24 effective July 1, 1997.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 8A - Uniform Unclaimed Property Act › Section 7-8A-25 - Agreement to locate property.

A. An agreement by an owner, the primary purpose of which is to locate, deliver, recover or assist in the recovery of property that is presumed abandoned, is void and unenforceable if it was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is forty-eight months after the date the property is paid or delivered to the administrator. This subsection does not apply to an owner's agreement with an attorney to file a claim as to identified property or contest the administrator's denial of a claim.
B. An agreement by an owner, the primary purpose of which is to locate, deliver, recover or assist in the recovery of property, is enforceable only if the agreement is in writing, clearly sets forth the nature of the property and the services to be rendered, is signed by the apparent owner and states the value of the property before and after the fee or other compensation has been deducted.
C. If an agreement covered by this section applies to mineral proceeds and the agreement contains a provision to pay compensation that includes a portion of the underlying minerals or any mineral proceeds not then presumed abandoned, the provision is void and unenforceable.
D. An agreement covered by this section which provides for compensation that is unconscionable is unenforceable except by the owner. An owner who has agreed to pay compensation that is unconscionable or the administrator on behalf of the owner may maintain an action to reduce the compensation to a conscionable amount. The court may award reasonable attorney fees to an owner who prevails in the action.
E. This section does not preclude an owner from asserting that an agreement covered by this section is invalid on grounds other than unconscionable compensation.
History:
Laws 1997, ch. 25, § 25; 2006, ch. 37, § 3.
ANNOTATIONS
The 2006 amendment,
effective July 1, 2006, extending the time period during which an agreement to locate property is valid from twenty-four months to forty-eight months.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 8A - Uniform Unclaimed Property Act › Section 7-8A-26 - Foreign transactions.

The Uniform Unclaimed Property Act (1995) does not apply to:
(1) property held, due and owing in a foreign country and arising out of a foreign transaction;
(2) funds in a member's share account in a credit union if the bylaws of the credit union provide for unclaimed funds to be used for educational or charitable uses; and
(3) patronage capital or other tangible ownership interest in a rural electric cooperative, a telephone cooperative, a water cooperative or an agricultural cooperative, if the bylaws of the cooperative provide for unclaimed patronage capital to be used for educational scholarships or other charitable uses.
History:
Laws 1997, ch. 25, § 26.
ANNOTATIONS
Effective dates.
— Laws 1997, ch. 25, § 34 made Laws 1997, ch. 25, § 26 effective July 1, 1997.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 8A - Uniform Unclaimed Property Act › Section 7-8A-27 - Transitional provisions.

(a) An initial report filed under the Uniform Unclaimed Property Act (1995) for property that was not required to be reported before the effective date of that act, but which is subject to that act, must include all items of property that would have been presumed abandoned during the ten-year period next preceding the effective date of the Uniform Unclaimed Property Act (1995) as if that act had been in effect during that period.
(b) The Uniform Unclaimed Property Act (1995) does not relieve a holder of a duty that arose before the effective date of that act to report, pay or deliver property. Except as otherwise provided in Section 19(b) [7-8A-19(b) NMSA 1978] of the Uniform Unclaimed Property Act (1995), a holder who did not comply with the law in effect before the effective date of that act is subject to the applicable provisions for enforcement and penalties which then existed, which are continued in effect for the purpose of this section.
History:
Laws 1997, ch. 25, § 27.
ANNOTATIONS
Effective dates.
— Laws 1997, ch. 25, § 34 made Laws 1997, ch. 25, § 27 effective July 1, 1997.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 8A - Uniform Unclaimed Property Act › Section 7-8A-28 - Rules.

The administrator may adopt pursuant to the State Rules Act [Chapter 14, Article 4 NMSA 1978] rules necessary to carry out the Uniform Unclaimed Property Act (1995).
History:
Laws 1997, ch. 25, § 28.
ANNOTATIONS
Effective dates.
— Laws 1997, ch. 25, § 34 made Laws 1997, ch. 25, § 28 effective July 1, 1997.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 8A - Uniform Unclaimed Property Act › Section 7-8A-29 - Uniformity of application and construction.

The Uniform Unclaimed Property Act (1995) shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of that act among states enacting it.
History:
Laws 1997, ch. 25, § 29.
ANNOTATIONS
Effective dates.
— Laws 1997, ch. 25, § 34 made Laws 1997, ch. 25, § 29 effective July 1, 1997.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 8A - Uniform Unclaimed Property Act › Section 7-8A-30 - Short title.

Chapter 7, Article 8A NMSA 1978 may be cited as the "Uniform Unclaimed Property Act (1995)".
History:
Laws 1997, ch. 25, § 30; 2006, ch. 37, § 4.
ANNOTATIONS
The 2006 amendment,
effective July 1, 2006, provided that the Uniform Unclaimed Property Act includes sections compiled within Chapter 7, Article 8A NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 8A - Uniform Unclaimed Property Act › Section 7-8A-31 - Severability clause.

If any provision of the Uniform Unclaimed Property Act (1995) or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of that act which can be given effect without the invalid provision or application, and to this end the provisions of the act are severable.
History:
Laws 1997, ch. 25, § 31.
ANNOTATIONS
Effective dates.
— Laws 1997, ch. 25, § 34 made Laws 1997, ch. 25, § 31 effective July 1, 1997.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-3.1 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1992, ch. 48, § 4 repealed 7-9-3.1 NMSA 1978, as enacted by Laws 1991, ch. 9, § 26, defining "livestock", effective July 1, 1992. For provisions of former section,
see
the 1991 NMSA 1978 on
NMOneSource.com.
Compiler's notes.
— Laws 2003, ch. 272, § 3 was to be codified as this section, but was instead codified as 7-9-3.5 NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-4.1 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 41, § 10 repealed 7-9-4.1 NMSA 1978, as enacted by Laws 1986, ch. 20, § 67, relating to a credit to be deducted from the gross receipts tax, effective July 1, 1990. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-4.2 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1994, ch. 45, § 8A repealed 7-9-4.2 NMSA 1978, as enacted by Laws 1990 (1st S.S.), ch. 1, § 3, relating to a temporary credit for the gross receipts tax, effective July 1, 1994. For provisions of former section,
see
the 1993 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-4.3 - Imposition and rate of tax; denomination as "governmental gross receipts tax".

For the privilege of engaging in certain activities by governments, there is imposed on every agency, institution, instrumentality or political subdivision of the state, except any school district and an entity licensed by the department of health, other than a hospital, that is principally engaged in providing health care services, an excise tax of five percent of governmental gross receipts. The tax imposed by this section shall be referred to as the "governmental gross receipts tax".
History:
1978 Comps., § 7-9-4.1, enacted by Laws 1991, ch. 8, § 2; 1992, ch. 49, § 1; 1992, ch. 100, § 2; 1993, ch. 332, § 1; 1993, ch. 352, § 1; 2019, ch. 270, § 27.
ANNOTATIONS
Compiler's notes.
— Laws 1991, ch. 8, § 2 enacted this section as 7-9-4.1 NMSA 1978, but, since a section with that code number had already been enacted, this section was compiled as 7-9-4.3 NMSA 1978.
The 2019 amendment,
effective July 1, 2019, excluded hospitals from "entities licensed by the department of health" that are exempt from paying governmental gross receipts tax; and after "department of health", added "other than a hospital".
The 1993 amendment,
effective July 1, 1993, inserted "school district and any" in the first sentence.
Laws 1993, ch. 332, § 1 enacted identical amendments to this section. The section was set out as amended by Laws 1993, ch. 352, § 1.
See
12-1-8 NMSA 1978.
The 1992 amendment,
effective July 1, 1992, substituted all of the present language of the first sentence beginning with "every agency" for "the state of New Mexico and any agency, institution, instrumentality, or political subdivision thereof an excise tax of five percent of governmental gross receipts".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-6 - Separately stating the gross receipts tax.

A. Taxpayers subject to the Gross Receipts and Compensating Tax Act, when billing a customer, shall separately state the amount of tax associated with the transaction or provide a statement affirmatively indicating that the gross receipts tax is included in the amount billed.
B. When the gross receipts tax is stated separately on the books of the seller or lessor, and if the total amount of tax that is stated separately on transactions reportable within one reporting period is in excess of the amount of gross receipts tax otherwise payable on the transactions on which the tax was stated separately, the excess amount of tax stated on the transactions within that reporting period shall be included in gross receipts.
History:
1953 Comp., § 72-16A-6, enacted by Laws 1966, ch. 47, § 6; 1970, ch. 28, § 1; 2019, ch. 270, § 29.
ANNOTATIONS
The 2019 amendment,
effective July 1, 2019, required taxpayers subject to the gross receipts and compensating tax, when billing a customer, to separately state the amount of the tax associated with the transaction; and added a new Subsection A and subsection designation "B".
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Reusable soft drink bottles as subject to sales or use taxes, 97 A.L.R.3d 1205.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-7.1 - Department barred from taking collection actions with respect to certain tax liabilities.

The department shall take no action to enforce collection of gross receipts tax for a tax period prior to July 1, 2019 on persons engaging in business if that person:
A. lacked physical presence in the state; and
B. did not report taxable gross receipts prior to July 1, 2019.
History:
1978 Comp., § 7-9-7.1, enacted by Laws 1993, ch. 45, § 1; 1994, ch. 34, § 1; 1995, ch. 50, § 2; 2019, ch. 270, § 31.
ANNOTATIONS
The 2019 amendment,
effective July 1, 2019, prohibited the department from taking action to enforce collection of gross receipts tax with respect to certain tax liabilities, and removed provisions related to the prohibition of taking action to enforce the collection of compensating tax with respect to certain tax liabilities; in the section heading, deleted "compensating"; and deleted former Subsections A and B and added the introductory clause and new Subsections A and B.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-7.2 - Authority to establish standards for certified service providers.

A. The secretary is authorized to provide information, upon which taxpayers may rely, as to the taxability of gross receipts from particular transactions, including taxability matrices, and is further authorized to establish standards for the certification of certified service providers that offer software-based systems to enable taxpayers to properly determine the taxability of gross receipts from particular transactions.
B. As used in this section, "certified service provider" means "certified service provider" as defined in the Streamlined Sales and Use Tax Administration Act [7-5A-1 to 7-5A-9 NMSA 1978].
History:
Laws 2019, ch. 270, § 37
ANNOTATIONS
Effective dates.
— Laws 2019, ch. 270, § 60 made Laws 2019, ch. 270, § 37 effective July 1, 2019.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-8 - Presumption of taxability and value.

A. To prevent evasion of the compensating tax and the duty to collect it, it is presumed that property bought or sold by any person for delivery into this state is bought or sold for a taxable use in this state.
B. In determining the amount of compensating tax due on the use of property, it is presumed, in the absence of preponderant evidence of another value, that the value means the total amount of money or the reasonable value of other consideration paid for property exclusive of any type of time-price differential. However, in an exchange in which the amount of money paid does not represent the value of the property or property and service purchased, the compensating tax shall be imposed on the reasonable value of the property or property and service purchased.
C. In determining the amount of compensating tax due on the use of a service, it is presumed, in the absence of preponderant evidence of another value, that the value means the total amount of money or the reasonable value of other consideration paid for the service exclusive of any type of time-price differential. However, in an exchange in which the amount paid does not represent the value of the service purchased, the compensating tax shall be imposed on the reasonable value of the service purchased.
History:
1953 Comp., § 72-16A-8, enacted by Laws 1966, ch. 47, § 8; 1969, ch. 144, § 4; 1972, ch. 85, § 2.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-9 - Liability of user for payment of compensating tax.

Any person in New Mexico using property on the value of which compensating tax is payable but has not been paid is liable to the state for payment of the compensating tax, but this liability is discharged if the buyer has paid the compensating tax to the seller for payment over to the department.
History:
1953 Comp., § 72-16A-9, enacted by Laws 1966, ch. 47, § 9; 1983, ch. 220, § 2; 1990, ch. 41, § 1.
ANNOTATIONS
The 1990 amendment,
effective July 1, 1990, substituted "department" for "division" at the end of the section and made a minor stylistic change.
Due process not violated by actions of tax officials.
— Department did not violate taxpayer's right to due process by: (1) making an assessment before the taxpayer provided pertinent records; (2) targeting the taxpayer because it had no history of reporting compensating taxes; and (3) delaying 18 months from the time of an audit notice to the time of the field audit.
Vivigen, Inc. v. Minzner
, 1994-NMCA-027, 117 N.M. 224, 870 P.2d 1382.
No offset for prior years investment credits.
— A taxpayer was not entitled to an offset in the amount it owed for compensating taxes for investment credits it had made in previous years, because it had not claimed the credits within the one-year statute of limitations period. Although the taxpayer argued that it was entitled to an offset under the doctrine of equitable recoupment, a taxpayer is not entitled to seek a credit after the statute-of-limitations period has expired unless the state is imposing a tax on the same taxable event on a ground that is inconsistent with the original payment by the taxpayer.
Vivigen, Inc. v. Minzner
, 1994-NMCA-027, 117 N.M. 224, 870 P.2d 1382.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-10 - Agents for collection of compensating tax; duties.

A. Every person carrying on or causing to be carried on any activity within this state attempting to exploit New Mexico's markets who sells property or sells property and service for use in this state and who is not subject to the gross receipts tax on receipts from these sales shall collect the compensating tax from the buyer and pay the tax collected to the department. "Activity", for the purposes of this section, includes but is not limited to engaging in any of the following in New Mexico: maintaining an office or other place of business; soliciting orders through employees or independent contractors; soliciting orders through advertisements placed in newspapers or magazines published in New Mexico or advertisements broadcast by New Mexico radio or television stations, soliciting orders through programs broadcast by New Mexico radio or television stations or transmitted by cable systems in New Mexico; canvassing, demonstrating, collecting money, warehousing or storing merchandise or delivering or distributing products as a consequence of an advertising or other sales program directed at potential customers. "Activity", for the purposes of this section, does not include having a world wide web site as a third-party provider on a computer physically located in New Mexico but owned by another nonaffiliated person, and "activity" does not include using a nonaffiliated third-party call center to accept and process telephone or electronic orders of tangible personal property or licenses primarily from non-New Mexico buyers, which orders are forwarded to a location outside New Mexico for filling, or to provide services primarily to non-New Mexico customers.
B. To ensure orderly and efficient collection of the public revenue, if any application of this section is held invalid, the section's application to other situations or persons shall not be affected.
History:
1953 Comp., § 72-16A-10, enacted by Laws 1966, ch. 47, § 10; 1983, ch. 220, § 3; 1990, ch. 41, § 2; 1998, ch. 92, § 5; 2000, ch. 101, § 2; 2001, ch. 65, § 2.
ANNOTATIONS
The 2001 amendment,
effective March 16, 2001, inserted "or to provide services primarily to non-New Mexico customers" at the end of Subsection A.
The 2000 amendment,
effective July 1, 2000, added the phrase beginning "and 'activity' does not include using a nonaffiliated third-party call center" at the end of Subsection A.
The 1998 amendment,
effective July 1, 1998, added the language beginning "but 'activity' does not include" to the end of Subsection A.
The 1990 amendment,
effective July 1, 1990, in Subsection A, substituted "department" for "division" at the end of the first sentence and inserted "soliciting orders through advertisements placed in newspapers or magazines published in New Mexico or advertisements broadcast by New Mexico radio or television stations, soliciting orders through programs broadcast by New Mexico radio or television stations or transmitted by cable systems in New Mexico" in the second sentence.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-11 - Date payment due.

The taxes imposed by the Gross Receipts and Compensating Tax Act are to be paid on or before the twenty-fifth day of the month following the month in which the taxable event occurs.
History:
1953 Comp., § 72-16A-11, enacted by Laws 1966, ch. 47, § 11; 1969, ch. 25, § 2.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-12.1 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1990, ch. 41, § 10 repealed 7-9-12.1 NMSA 1978, as enacted by Laws 1984, ch. 2, § 10, relating to findings and intent, effective July 1, 1990. For provisions of former section,
see
the 1989 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-13 - Exemption; gross receipts tax; governmental agencies.

A. Except as otherwise provided in this section, exempted from the gross receipts tax are receipts of:
(1) the United States or any agency, department or instrumentality thereof;
(2) the state of New Mexico or any political subdivision thereof;
(3) any Indian nation, tribe or pueblo from activities or transactions occurring on its sovereign territory; or
(4) any foreign nation or agency, instrumentality or political subdivision thereof, but only when required by a treaty in force to which the United States is a party.
B. Receipts from the sale of gas or electricity by a utility owned or operated by a county, municipality or other political subdivision of a state are not exempted from the gross receipts tax.
C. Receipts from the operation of a cable television system owned or operated by a municipality are not exempted from the gross receipts tax.
History:
1953 Comp., § 72-16A-12.1, enacted by Laws 1969, ch. 144, § 6; 1991, ch. 8, § 4; 1993, ch. 31, § 3; 1993, ch. 208, § 7; 1994, ch. 45, § 2; 1998, ch. 89, § 1.
ANNOTATIONS
The 1998 amendment,
effective July 1, 1998, added Paragraph A(4) and made minor stylistic changes.
The 1994 amendment,
effective July 1, 1994, rewrote Subsection A, which read: "Exempted from the gross receipts tax are the receipts of the United States or any agency or instrumentality thereof or the state of New Mexico or any political subdivision thereof"; and substituted "a state" for "the state" in Subsection B.
The 1993 amendment,
effective June 18, 1993, designated the former provisions as Subsections A and B and added Subsection C.
The 1991 amendment,
effective July 1, 1991, deleted "water" following "gas" in the second sentence and made a related stylistic change.
Disbursement agents of federal funds immune from gross receipts tax.
— Agents for the disbursement of federal funds are constitutionally immune from application of the gross receipts tax to those funds.
United States v. New Mexico
, 624 F.2d 111 (10th Cir. 1980),
aff'd
, 455 U.S. 720, 102 S. Ct. 1373, 71 L. Ed. 2d 580 (1982).
United States not excluded from state tax proceedings involving its contractors.
— The United States may not properly be excluded, under all circumstances, from state tax proceedings involving its contractors, since the contracts obligate the United States to provide funds necessary to defray all costs incurred in the performance of contracts, including taxes.
United States v. New Mexico
, 624 F.2d 111 (10th Cir. 1980),
aff'd
, 455 U.S. 720, 102 S. Ct. 1373, 71 L. Ed. 2d 580 (1982).
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-13.1 - Exemption; gross receipts tax; certain services.

A. Exempted from the gross receipts tax are the receipts from selling research and development services performed outside New Mexico the product of which is initially used in New Mexico and that are sold:
(1) between affiliated corporations;
(2) to the United States by persons, other than organizations described in Subsection A of Section 7-9-29 NMSA 1978, who are prime contractors operating facilities in New Mexico designated as national laboratories by act of congress; or
(3) to persons, other than organizations described in Subsection A of Section 7-9-29 NMSA 1978, who are prime contractors operating facilities in New Mexico designated as national laboratories by act of congress.
B. An "affiliated corporation" means a corporation that directly or indirectly, through one or more intermediaries controls, is controlled by or is under common control with the subject corporation. "Control" means ownership of stock in a corporation that represents at least eighty percent of the total voting power of that corporation and has a stated or par value equal to at least eighty percent of the total stated or par value of the stock of that corporation.
History:
1978 Comp., § 7-9-13.1, enacted by Laws 1989, ch. 262, § 4; 2019, ch. 270, § 32.
ANNOTATIONS
The 2019 amendment,
effective July 1, 2021, provided an exemption from the gross receipts tax for receipts from selling certain research and development services; in the section heading, added "certain", and deleted "performed outside the state the product of which is initially used in New Mexico; exceptions"; in Subsection A, deleted "Except as provided otherwise in Subsection B, of this section", and after "selling", added "research and development"; redesignated former Subsection C as Subsection B, and after "used in New Mexico", deleted "The exemption provided by this section does not apply to research and development services other than research and development services" and added "and that are sold".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-13.2 - Exemption; governmental gross receipts tax; receipts subject to certain other taxes.

Exempted from the governmental gross receipts tax are receipts from transactions involving tangible personal property or services on which receipts or transactions the gross receipts tax, compensating tax, motor vehicle excise tax, gasoline tax, special fuel tax, special fuel excise tax, oil and gas emergency school tax, resources tax, processors tax, service tax or the excise tax imposed under Section 66-12-6.1 NMSA 1978 is imposed.
History:
Laws 1992, ch. 100, § 3; 1993, ch. 31, § 4.
ANNOTATIONS
The 1993 amendment,
effective July 1, 1993, inserted "special fuel excise tax," near the end of this section.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-13.3 - Exemption; gross receipts tax and governmental gross receipts tax; stadium surcharge.

Exempted from the gross receipts tax and from the governmental gross receipts tax are the receipts from selling tickets, parking, souvenirs, concessions, programs, advertising, merchandise, corporate suites or boxes, broadcast revenues and all other products, services or activities sold at, related to or occurring at a minor league baseball stadium on which a stadium surcharge is imposed pursuant to the Minor League Baseball Stadium Funding Act [3-65-1 to 3-65-10 NMSA 1978].
History:
Laws 2001, ch. 231, § 12.
ANNOTATIONS
Emergency clause.
— Laws 2001, ch. 231, § 13 contained an emergency clause and was approved April 3, 2001.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-13.4 - Exemption; gross receipts tax; sale of textbooks from certain bookstores to enrolled students.

Exempted from the gross receipts tax are the receipts from the sale of textbooks and other materials that are required for courses at a public post-secondary educational institution if the sale is by a bookstore located on the campus of the institution and operated pursuant to a contractual agreement with that institution and the sale is to a student enrolled at the institution who displays a valid student identification card.
History:
Laws 2002, ch. 20, § 1.
ANNOTATIONS
Effective dates.
— Laws 2002, ch. 20, § 2 made Laws 2002, ch. 20, § 1 effective July 1, 2002.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-13.5 - Exemption; gross receipts tax and governmental gross receipts tax; event center surcharge.

Exempted from the gross receipts tax and from the governmental gross receipts tax are the receipts from selling tickets, parking, souvenirs, concessions, programs, advertising, merchandise, corporate suites or boxes, broadcast revenues and all other products or services sold at or related to a municipal event center or related to activities occurring at the event center on which an event center surcharge is imposed pursuant to the Municipal Event Center Funding Act [3-66-1 to 3-66-11 NMSA 1978].
History:
Laws 2005, ch. 351, § 2.
ANNOTATIONS
Compiler's notes.
— Laws 2005, ch. 351 was not enacted as part of the Municipal Code but is included in that code as a convenience to the user.
Emergency clause.
— Laws 2005, ch. 351, § 14 contained an emergency clause and was approved April 8, 2005.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-15 - Exemption; compensating tax; certain organizations.

Exempted from the compensating tax is the use of property by organizations that demonstrate to the department that they have been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the United States Internal Revenue Code of 1954, as amended or renumbered, in the conduct of functions described in Section 501(c)(3). The use of property as an ingredient or component part of a construction project is not a use in the conduct of functions described in Section 501(c)(3). This section does not apply to the use of property in an unrelated trade or business as defined in Section 513 of the United States Internal Revenue Code of 1954, as amended or renumbered.
History:
1953 Comp., § 72-16A-12.3, enacted by Laws 1969, ch. 144, § 8; reenacted by Laws 1970, ch. 12, § 1; 1983, ch. 220, § 4; 1990, ch. 41, § 4.
ANNOTATIONS
Cross references.
— For the exemption of certain organizations from the gross receipts tax,
see
7-9-29 NMSA 1978.
For Sections 501(c)(3) and 513 of the Internal Revenue Code of 1954,
see
26 U.S.C. §§ 501(c)(3) and 513, respectively.
The 1990 amendment,
effective July 1, 1990, substituted "department" for "division" in the first sentence.
Use of nontaxable transaction certificates.
— The use of nontaxable transaction certificates, not the taking of the deduction, subjects a taxpayer to the compensating tax.
Continental Inn of Albuquerque, Inc. v. N.M. Taxation & Revenue Dep't
, 1992-NMCA-030, 113 N.M. 588, 829 P.2d 946.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-16 - Repealed.

History:
1953 Comp., § 72-16A-12.4, enacted by Laws 1969, ch. 144, § 9; 1970, ch. 12, § 2; 1975, ch. 54, § 1; repealed by Laws 2023, ch. 85, § 28.
ANNOTATIONS
Repeals.
— Laws 2023, ch. 85, § 28 repealed 7-9-16 NMSA 1978, as enacted by Laws 1969, ch. 144, § 9, relating to exemption, gross receipts tax, certain nonprofit facilities, effective July 1, 2023. For provisions of former section,
see
the 2022 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-17 - Exemption; gross receipts tax; wages.

Exempted from the gross receipts tax are the receipts of employees from wages, salaries, commissions or from any other form of remuneration for personal services.
History:
1953 Comp., § 72-16A-12.5, enacted by Laws 1969, ch. 144, § 10.
ANNOTATIONS
Effective dates.
— Laws 1969, ch. 144, § 68 made Laws 1969, ch. 144, § 10 effective July 1, 1969.
Wages, salaries, commissions and other forms of payment
for personal services received by an employee are specifically exempted from gross receipts tax by this section.
Eaton v. Bureau of Revenue
, 1972-NMCA-114, 84 N.M. 226, 501 P.2d 670, cert. denied, 84 N.M. 219, 501 P.2d 663.
All of taxpayer's receipts, including employee's wages, taxable.
— Wages paid directly to truck drivers employed by taxpayer, pursuant to hauling agreement, which were paid out of taxpayer's gross receipts and on behalf of taxpayer, a self-employed hauler, were subject to gross receipts tax, regardless of the fact that taxpayer never received such wages to distribute to his drivers.
Duke v. Bureau of Revenue
, 1975-NMCA-025, 87 N.M. 360, 533 P.2d 593.
Same taxation scheme used for both state and federal purposes.
— When carpenter filed self-employment returns with the internal revenue service for social security purposes when customers did not withhold F.I.C.A. taxes, and filed federal income tax returns which reported income from a business or profession, the taxpayer must not attempt to show one scheme for federal tax purposes and a nontaxable event for purposes of state gross receipts tax.
Stohr v. N.M. Bureau of Revenue
, 1976-NMCA-118, 90 N.M. 43, 559 P.2d 420, cert. denied, 90 N.M. 254, 561 P.2d 1347 (1977).
Percentages paid jockeys not exempt.
— Since by established custom in the state of New Mexico the horse owner pays the jockey on his winning mount 10% of the purse, and a jockey, during the course of a racing day, may ride in several races, riding various different horses, each of which may have a different owner and a horse owner is not required to withhold income tax from the jockey's share of the purse, pay F.I.C.A. tax, or make unemployment insurance contributions for the jockey, then commissioner of revenue (now secretary of taxation and revenue department) was within his authority in denying employee exemption to defendant.
Rock v. Comm'r of Revenue
, 1972-NMCA-012, 83 N.M. 478, 493 P.2d 963 (case decided before the exemption granted jockeys by 7-9-40 NMSA 1978).
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Tips: applicability of sales tax to "tips" or service charges added in lieu of tips, 73 A.L.R.3d 1226.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-18 - Exemption; gross receipts tax and governmental gross receipts tax; agricultural products.

A. Exempted from the gross receipts tax and from the governmental gross receipts tax are the receipts from selling livestock and receipts of growers, producers, trappers or nonprofit marketing associations from selling livestock, live poultry, unprocessed agricultural products, hides or pelts. Persons engaged in the business of buying and selling wool or mohair or of buying and selling livestock on their own account are producers for the purposes of this section.
B. Receipts from selling dairy products at retail are not exempted from the gross receipts tax.
C. As used in this section, "livestock" means all domestic or domesticated animals that are used or raised on a farm or ranch, including the carcasses thereof, and also includes horses, asses, mules, cattle, sheep, goats, swine, bison, poultry, ostriches, emus, rheas, camelids and farmed cervidae upon any land in New Mexico; provided that for the purposes of Chapter 77, Article 9 NMSA 1978, "animals" or "livestock" have the meaning defined in that article. "Animals" or "livestock" does not include canine or feline animals. For the purpose of the rules governing meat inspection, wild animals, poultry and birds used for human consumption shall also be included within the meaning of "animals" or "livestock".
History:
1953 Comp., § 72-16A-12.6, enacted by Laws 1969, ch. 144, § 11; 1991, ch. 9, § 27; 1992, ch. 48, § 1; 1993, ch. 31, § 6; 2011, ch. 81, § 1.
ANNOTATIONS
The 2011 amendment,
effective June 17, 2011, added a definition of "livestock".
The 1993 amendment,
effective July 1, 1993, inserted "and governmental gross receipts tax" in the catchline and inserted "and from the governmental gross receipts tax" in the first sentence.
The 1992 amendment,
effective July 1, 1992, deleted "or horses" following "livestock" near the beginning of the first sentence, and inserted "or of buying and selling livestock" in the second sentence.
The 1991 amendment,
effective July 1, 1991, inserted "from selling livestock or horses and receipts" and deleted "livestock" preceding "live poultry" in the first sentence and, in the second sentence, deleted "or of buying and selling livestock" following "mohair".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-18.1 - Exemption; gross receipts tax; food stamps.

Exempted from the gross receipts tax are the receipts of a taxpayer who is approved for participation in the food stamp program authorized by U.S.C. Title 7, Chapter 51, as that chapter may be amended or renumbered, from the lawful acceptance and deposit with a financial institution of food stamps issued by the United States department of agriculture pursuant to the food stamp program.
History:
1978 Comp., § 7-9-18.1, enacted by Laws 1987, ch. 264, § 13 and Laws 1987, ch. 304, § 1.
ANNOTATIONS
Effective dates.
— Laws 1987, ch. 304, § 2 made Laws 1987, ch. 304, § 1 effective October 1, 1987.
Compiler's notes.
— Laws 1987, ch. 264, § 13 and Laws 1987, ch. 304, § 1 enacted identical versions of this section.
Cross references.
— For Chapter 51 of Title 7 of the United States Code,
see
7 U.S.C. § 2011 et seq.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-19 - Exemption; gross receipts tax; livestock feeding.

A. Exempted from the gross receipts tax are the receipts of any person derived from feeding or pasturing livestock.
B. Receipts derived from penning or handling livestock prior to sale are receipts derived from feeding livestock for the purposes of this section.
C. Receipts derived from training livestock are receipts derived from feeding livestock for the purposes of this section.
History:
1953 Comp., § 72-16A-12.7, enacted by Laws 1969, ch. 144, § 12; 1974, ch. 19, § 1; 1991, ch. 9, § 28; 1992, ch. 48, § 2.
ANNOTATIONS
The 1992 amendment,
effective July 1, 1992, substituted "are not" for "are" in Subsection C.
The 1991 amendment,
effective July 1, 1991, designated the formerly undesignated provisions as Subsections A to C and, in Subsection C, inserted "not" preceding "receipts".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-20 - Exemption; gross receipts tax; certain receipts of homeowners associations.

Exempted from the gross receipts tax are those receipts of homeowners associations defined in Section 528(c)(1) (A thru D), (2), (3) and (4) (A, B and D) of the Internal Revenue Code, as amended, which are received as membership fees, dues or assessments from members who are owners of residential units, residences or residential lots except for owners of time-share interests, for payment of taxes, insurance, utility expenses, management and improvement, maintenance or rehabilitation of those common areas, elements or facilities appurtenant thereto which are for the sole use of the owners and their guests.
History:
1978 Comp., § 7-9-20, enacted by Laws 1988, ch. 82, § 1.
ANNOTATIONS
Repeals.
— Laws 1981, ch. 37, § 97 repealed former 7-9-20 NMSA 1978, as enacted by Laws 1969, ch. 144, § 13, relating to exemption of banks and financial institutions from the Gross Receipts Act, effective January 1, 1982.
Cross references.
— For Section 528 of the Internal Revenue Code,
see
26 U.S.C. § 528.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-21 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1981, ch. 37, § 97 repealed former 7-9-21 NMSA 1978, as enacted by Laws 1969, ch. 144, § 14, relating to exemption of banks and financial institutions from the Compensating Tax Act, effective January 1, 1982.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-22 - Exemption; gross receipts tax; vehicles.

Exempted from the gross receipts tax are the receipts from selling vehicles on which a tax is imposed by the Motor Vehicle Excise Tax Act [Chapter 7, Article 14 NMSA 1978], vehicles subject to registration under Section 66-3-16 NMSA 1978 and vehicles exempt from the motor vehicle excise tax pursuant to Subsection F of Section 7-14-6 NMSA 1978.
History:
1953 Comp., § 72-16A-12.10, enacted by Laws 1969, ch. 144, § 15; 1976 (S.S.), ch. 36, § 2; 1981, ch. 184, § 2; 1988, ch. 73, § 8; 2004, ch. 66, § 1.
ANNOTATIONS
The 2004 amendments,
effective July 1, 2004, added "and vehicles exempt from the motor vehicle excise tax pursuant to Subsection F of Section 7-14-6 NMSA 1978" after "1978".
There is legislative policy treating taxation of motor vehicles sales
differently from the taxation of most other business activities.
City of Alamogordo v. Walker Motor Co., Inc
., 1980-NMSC-038, 94 N.M. 690, 616 P.2d 403.
Mobile homes as inventory not exempt.
— The gross receipts from the sale of mobile homes held as inventory are not exempt from the gross receipts tax.
S & S Sales, Inc. v. Bureau of Revenue
, 1976-NMCA-009, 88 N.M. 649, 545 P.2d 1027.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-22.1 - Exemption; gross receipts tax; boats.

Exempted from the gross receipts tax are the receipts from selling boats on which a tax is imposed by Section 66-12-6.1 NMSA 1978.
History:
1978 Comp., § 7-9-22.1, enacted by Laws 1987, ch. 247, § 1.
ANNOTATIONS
Effective dates.
— Laws 1987, ch. 247, § 13 made Laws 1987, ch. 247, § 1 effective July 1, 1987.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-23 - Exemption; compensating tax; vehicles.

Exempted from the compensating tax is the use of vehicles on which the tax imposed by the Motor Vehicle Excise Tax Act [Chapter 7, Article 14 NMSA 1978] has been paid, the use of vehicles subject to registration under Section 66-3-16 NMSA 1978 and the use of vehicles exempt from the motor vehicle excise tax pursuant to Subsection F of Section 7-14-6 NMSA 1978.
History:
1953 Comp., § 72-16A-12.11, enacted by Laws 1969, ch. 144, § 16; 1976 (S.S.), ch. 36, § 3; 1983, ch. 220, § 5; 1988, ch. 73, § 9; 2004, ch. 66, § 2.
ANNOTATIONS
The 2004 amendments,
effective July 1, 2004, added "and the use of vehicles exempt from the motor vehicle excise tax pursuant to Subsection F of Section 7-14-6 NMSA 1978" after "1978".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-23.1 - Exemption; compensating tax; boats.

Exempted from the compensating tax is the use of boats on which the tax imposed by Section 66-12-6.1 NMSA 1978 has been paid.
History:
1978 Comp., § 7-9-23.1, enacted by Laws 1987, ch. 247, § 2.
ANNOTATIONS
Effective dates.
— Laws 1987, ch. 247, § 13 made Laws 1987, ch. 247, § 2 effective July 1, 1987.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-24 - Exemption; gross receipts tax; insurance companies.

Exempted from the gross receipts tax are the receipts of insurance companies or any agent thereof from premiums and any consideration received by a property bondsman, as that person is defined in Section 59A-51-2 NMSA 1978, as security or surety for a bail bond in connection with a judicial proceeding.
History:
1953 Comp., § 72-16A-12.12, enacted by Laws 1969, ch. 144, § 17; 1988, ch. 74, § 1.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-25 - Exemption; gross receipts tax; dividends and interest.

Exempted from the gross receipts tax are the receipts received as interest on money loaned or deposited, receipts received as dividends or interest from stocks, bonds or securities or receipts from the sale of stocks, bonds or securities.
History:
1953 Comp., § 72-16A-12.13, enacted by Laws 1969, ch. 144, § 18.
ANNOTATIONS
Effective dates.
— Laws 1969, ch. 144, § 68 made Laws 1969, ch. 144, § 18 effective July 1, 1969.
Pawnbroker's receipts from sales of pawned chattel
were not exempt or deductible from gross receipts tax as the recoupment of principal, interest, and handling charges attendant to the initial loan transaction.
Wing Pawn Shop v. Taxation & Revenue Dep't
, 1991-NMCA-024, 111 N.M. 735, 809 P.2d 649 (decided on facts existing prior to enactment of Pawnbrokers Act, Section 56-12-1 NMSA 1978 et seq.)