2023 New Mexico Statutes › Chapter 7 - Taxation › Article 1 - Administration › Section 7-1-14 - Reporting location instructions for purposes of reporting gross receipts and use; location; code database and location-rate database.

A. For purposes of the Gross Receipts and Compensating Tax Act [Chapter 7, Article 9 NMSA 1978], Interstate Telecommunications Gross Receipts Tax Act [Chapter 7, Article 9C NMSA 1978], Leased Vehicle Gross Receipts Tax Act [Chapter 7, Article 14A NMSA 1978] and any act authorizing the imposition of a local option gross receipts or compensating tax, a taxpayer that has gross receipts and a taxpayer using property or services in New Mexico in a taxable manner shall report the gross receipts and use to the proper reporting location as provided in this section.
B. The reporting location for gross receipts from the sale, lease or granting of a license to use real property located in New Mexico, and any related deductions, shall be the location of the property.
C. The reporting location for gross receipts from the sale or license of property, other than real property, and any related deductions, shall be at the following locations:
(1) if the property is received by the purchaser at the New Mexico location of the seller, the location of the seller;
(2) if the property is not received by the purchaser at the location of the seller, the location indicated by instructions for delivery to the purchaser, or the purchaser's donee, when known to the seller;
(3) if Paragraphs (1) and (2) of this subsection do not apply, the location indicated by an address for the purchaser available from the business records of the seller that are maintained in the ordinary course of business; provided that use of the address does not constitute bad faith;
(4) if Paragraphs (1) through (3) of this subsection do not apply, the location for the purchaser obtained during consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available; provided that use of this address does not constitute bad faith; or
(5) if Paragraphs (1) through (4) of this subsection do not apply, including a circumstance in which the seller is without sufficient information to apply those standards, the location from which the property was shipped or transmitted.
D. The reporting location for gross receipts from the lease of tangible personal property, including vehicles, other transportation equipment and other mobile tangible personal property, and any related deductions, shall be the location of primary use of the property, as indicated by the address for the property provided by the lessee that is available to the lessor from the lessor's records maintained in the ordinary course of business; provided that use of this address does not constitute bad faith. The location of primary use shall not be altered by intermittent use at different locations, such as use of business property that accompanies employees on business trips and service calls.
E. The reporting location for gross receipts from the sale, lease or license of franchises, and any related deductions, shall be where the franchise is used.
F. The reporting location for gross receipts from the performance or sale of the following services, and any related deductions, shall be at the following locations:
(1) for professional services performed in New Mexico, other than construction-related services, or performed outside New Mexico when the product of the service is initially used in New Mexico, the location of the performer of the service or seller of the product of the service, as appropriate;
(2) for construction services and construction-related services performed for a construction project in New Mexico, the location of the construction site;
(3) for services with respect to the selling of real estate located in New Mexico, the location of the real estate;
(4) for transportation of persons or property in, into or from New Mexico, the location where the person or property enters the vehicle; and
(5) for services other than those described in Paragraphs (1) through (4) of this subsection, the location where the product of the service is delivered.
G. Except as provided in Subsection H of this section, the reporting location for uses of property or services subject to the compensating tax shall be the location at which gross receipts would have been required to be reported had the transaction been subject to the gross receipts tax.
H. If a taxpayer subject to the compensating tax can demonstrate that the first use upon which compensating tax is imposed occurred at a time and place different from the time and place of the purchase, then the reporting location for the compensating tax shall be the location of the first use.
I. The secretary shall develop a location-code database that provides the reporting location codes designated by the secretary. The secretary shall also develop and provide to taxpayers a location-rate database that sets out the tax rates applicable to reporting locations within the state, by address, and sellers who properly rely on this database shall not be liable for any additional tax due to the use of an incorrect rate.
J. As used in this section:
(1) "gross receipts" means, as applicable, "gross receipts" as used in the Gross Receipts and Compensating Tax Act and the Leased Vehicle Gross Receipts Tax Act and "interstate telecommunications gross receipts" in the Interstate Telecommunications Gross Receipts Tax Act [Chapter 7, Article 9C NMSA 1978];
(2) "in-person service" means a service physically provided in person by the service provider, where the customer or the customer's real or tangible personal property upon which the service is performed is in the same location as the service provider at the time the service is performed; and
(3) "professional service" means a service, other than an in-person service, that requires either an advanced degree from an accredited post-secondary educational institution or a license from the state to perform.
History:
1953 Comp., § 72-13-30.1, enacted by Laws 1969, ch. 145, § 1; 1970, ch. 57, § 2; 1977, ch. 315, § 3; 1979, ch. 144, § 13; 1983, ch. 211, § 24; 1992, ch. 55, § 10; 1995, ch. 100, § 1; 2019, ch. 270, § 11; repealed and reenacted by Laws 2020, ch. 80, § 1; 2023, ch. 85, § 4.
ANNOTATIONS
Repeals and reenactments.
— Laws 2020, ch. 80, § 1 repealed former 7-1-14 NMSA 1978, as enacted by Laws 1969, ch. 145, § 1, and enacted a new section, effective July 1, 2021.
Laws 2020, ch. 80, § 15 repealed Laws 2019, ch. 270, § 11, effective July 1, 2021.
The 2023 amendment,
effective July 1, 2023, clarified reporting location instructions for certain property; substituted "reporting location" for "business location" throughout the section; in Subsection A, substituted "taxpayer" for "person" throughout the subsection; in Subsection C, after "sale or license of", deleted "tangible personal", and after "property", added "other than real property"; in Subsection G, after "Subsection H of this section", added "the reporting location for"; in Subsection H, after "If a", deleted "person" and added "taxpayer"; deleted former Subsection I, which required the secretary of the taxation and revenue department to designate codes to identify business locations, and redesignated Subsections J and K as Subsections I and J, respectively; in Subsection I, after "location codes designated", deleted "pursuant to Subsection I of this section" and added "by the secretary"; and in Subsection J, deleted former Paragraph (1), which defined "business location" and redesignated Paragraphs K(2) through K(4) as Paragraphs J(1) through J(3), respectively.
The 1995 amendment,
effective July 1, 1995, rewrote the section heading which read "Secretary may require gross receipts to be reported according to municipality, Indian reservation, pueblo grant or if on municipally owned land"; designated the former first, second and third sentences as Subsections A through C; and added Subsection D.
The 1992 amendment,
effective July 1, 1992, substituted "Secretary" for "Director" in the section heading and throughout the section, substituted "one or more places" for "more than one place" and deleted "covered by a contract of the type described in Section 7-1-6.4 NMSA 1978" following "pueblo grant" in the first sentence, added "all of the present language of the second sentence" following "place of business", and made minor stylistic changes throughout the section.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 72 Am. Jur. 2d State and Local Taxation § 727.
85 C.J.S. Taxation §§ 1701 et seq