reglab/statecodes huggingface dataset:
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-26 - Exemption; gross receipts and compensating tax; fuel.

Exempted from the gross receipts and compensating tax are the receipts from selling and the use of gasoline, special fuel or alternative fuel on which the tax imposed by Section 7-13-3, 7-16A-3 or 7-16B-4 NMSA 1978 has been paid and not refunded.
History:
1953 Comp., § 72-16A-12.14, enacted by Laws 1969, ch. 144, § 19; 1971, ch. 176, § 1; 1980, ch. 105, § 2; 1981, ch. 175, § 1; 1983, ch. 225, § 1; 1993, ch. 31, § 7; 1995, ch. 16, § 12; 2023, ch. 85, § 12.
ANNOTATIONS
Cross references.
— For other fuel related exemptions,
see
7-9-32 to 7-9-34, 7-9-36 and 7-9-37 NMSA 1978.
The 2023 amendment,
effective July 1, 2023, after "Section 7-13-3", deleted "7-16-3 or", after "7-16A-3", added "or 7-16B-4", and after "NMSA 1978", deleted "or the Alternative Fuel Tax Act".
The 1995 amendment,
effective January 1, 1996, inserted "or alternative fuel" and "or the Alternative Fuel Tax Act".
The 1993 amendment,
effective July 1, 1993, deleted the subsection designation "A" at the beginning; inserted "7-16A-3"; deleted former Subsection B, pertaining to the exemption of receipts from selling and use of ethanol blended fuel; and made a minor stylistic change.
Constitutionality of deduction for ethanol-blended fuel.
— Former section 7-13-4.1 NMSA 1978 discriminated between the tax treatment of ethanol-blended fuel manufactured in New Mexico and ethanol-blended fuel manufactured elsewhere; this discrimination violated the commerce clause.
Giant Indus. Ariz., Inc. v. Taxation & Revenue Dep't
, 1990-NMCA-074, 110 N.M. 442, 796 P.2d 1138.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Exemption, from sales or use tax, of water, oil, gas, other fuel, or electricity provided for residential purposes, 15 A.L.R.4th 269.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-26.1 - Exemption; gross receipts tax and compensating tax; fuel for space vehicles.

A. Exempted from the gross receipts tax are the receipts from selling fuel, oxidizer or a substance that combines fuel and oxidizer to propel space vehicles or to operate space vehicle launchers.
B. Exempted from the compensating tax is the use of fuel, oxidizer or a substance that combines fuel and oxidizer to propel space vehicles or to operate space vehicle launchers.
History:
1978 Comp., § 7-9-26.1, enacted by Laws 2003, ch. 62, § 1.
ANNOTATIONS
Effective dates.
— Laws 2003, ch. 62, § 5 made Laws 2003, ch. 62, § 1 effective July 1, 2003.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-27 - Exemption; compensating tax; personal effects.

Exempted from the compensating tax is the use by an individual of personal or household effects brought into the state in connection with the establishment by him of an initial residence in this state and the use of property brought into the state by a nonresident for his own nonbusiness use while temporarily within this state.
History:
1953 Comp., § 72-16A-12.15, enacted by Laws 1969, ch. 144, § 20.
ANNOTATIONS
Effective dates.
— Laws 1969, ch. 144, § 68 made Laws 1969, ch. 144, § 20 effective July 1, 1969.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-28 - Exemption; gross receipts tax; occasional sale of property or services.

Exempted from the gross receipts tax are the receipts from the isolated or occasional sale of or leasing of property or a service by a person who is neither regularly engaged nor holding himself out as engaged in the business of selling or leasing the same or similar property or service.
History:
1953 Comp., § 72-16A-12.16, enacted by Laws 1969, ch. 144, § 21.
ANNOTATIONS
Effective dates.
— Laws 1969, ch. 144, § 68 made Laws 1969, ch. 144, § 21 effective July 1, 1969.
Oil company's receipts from coal dragline leases not exempt.
— Although oil company had not "historically" engaged in the business of leasing draglines, where it had clearly entered that business with a large investment and a long-term commitment of resources, had established 20-year terms for the leases, resulting in a fixed amount of income over a long period of time, these transactions were not occasional and were accordingly not tax exempt.
Kewanee Indus., Inc. v. Reese
, 1993-NMSC-006, 114 N.M. 784, 845 P.2d 1238.
Law reviews.
— For article, "The Deductibility for Federal Income Tax Purposes of the New Mexico Gross Receipts Tax Paid on the Purchase of a Newly Constructed Home," see 13 N.M.L. Rev. 625 (1983).
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Casual or isolated sales: exemption of casual, isolated or occasional sales under sales and use taxes, 42 A.L.R.3d 292.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-30 - Exemption; compensating tax; railroad equipment, aircraft and space vehicles.

A. Exempted from the compensating tax is the use of railroad locomotives, trailers, containers, tenders or cars procured or bought for use in railroad transportation.
B. Exempted from the compensating tax is the use of commercial aircraft bought or leased primarily for use in the transportation of passengers or property for hire in interstate commerce.
C. Exempted from the compensating tax is the use of space vehicles for transportation of persons or property in, to or from space.
History:
1953 Comp., § 72-16A-12.18, enacted by Laws 1969, ch. 144, § 23; 1988, ch. 148, § 1; 2003, ch. 62, § 2.
ANNOTATIONS
The 2003 amendment,
effective July 1, 2003, substituted "aircraft and space vehicles" for "and aircraft" in the section heading and added Subsection C.
Applicability of former provision limited.
— Former 72-17-4I, 1953 Comp., (now Section 7-9-30A NMSA 1978) exempting certain railroad property from the purview of the former Compensating Tax Act, applied only to railroads engaged in the transportation of persons or property for hire on established lines.
Gibbons & Reed Co. v. Bureau of Revenue
, 1969-NMSC-096, 80 N.M. 462, 457 P.2d 710.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-31 - Exemption; gross receipts and compensating tax; resale activities of an armed forces instrumentality.

Exempted from the gross receipts and compensating tax are the receipts from selling tangible personal property and the use of property by any instrumentality of the armed forces of the United States engaged in resale activities.
History:
1953 Comp., § 72-16A-12.19, enacted by Laws 1969, ch. 144, § 24.
ANNOTATIONS
Effective dates.
— Laws 1969, ch. 144, § 68 made Laws 1969, ch. 144, § 24 effective July 1, 1969.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-32 - Exemption; gross receipts tax; oil and gas or mineral interests.

Exempted from the gross receipts tax are the receipts from the sale of or leasing of oil, natural gas or mineral interests.
History:
1953 Comp., § 72-16A-12.20, enacted by Laws 1969, ch. 144, § 25.
ANNOTATIONS
Effective dates.
— Laws 1969, ch. 144, § 68 made Laws 1969, ch. 144, § 25 effective July 1, 1969.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Mining exemption from sales or use tax, 47 A.L.R.4th 1229.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-33 - Exemption; gross receipts tax; products subject to Oil and Gas Emergency School Tax Act.

A. Exempted from the gross receipts tax are receipts from the sale of products the severance of which is subject to the tax imposed by the Oil and Gas Emergency School Tax Act [Chapter 7, Article 31 NMSA 1978] except that receipts from the sale of products other than for subsequent resale in the ordinary course of business, for consumption outside the state, or for use as an ingredient or component part of a manufactured product are subject to the Gross Receipts and Compensating Tax Act as well as to the Oil and Gas Emergency School Tax Act.
B. No gross receipts tax or compensating tax pursuant to the Gross Receipts and Compensating Tax Act shall apply to storing crude oil, natural gas or liquid hydrocarbons, individually or any combination, or to the use of such products for fuel in the operation of a "production unit" as defined by the Oil and Gas Emergency School Tax Act.
History:
1953 Comp., § 72-16A-12.21, enacted by Laws 1969, ch. 144, § 26; 1975, ch. 133, § 1; 1984, ch. 2, § 3; 1989, ch. 115, § 1.
ANNOTATIONS
The 1989 amendment,
effective July 1, 1989, substituted "products" for "persons" in the catchline; rewrote Subsection A; and in Subsection B deleted "any person for the privilege of" following "apply to", and deleted "thereof" following "combination".
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Mining exemption from sales or use tax, 47 A.L.R.4th 1229.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-34 - Exemption; gross receipts tax; refiners and persons subject to Natural Gas Processors Tax Act.

A. Exempted from the gross receipts tax are receipts from the sale or processing of products the processing of which is subject to the privilege tax imposed by the Natural Gas Processors Tax Act [Chapter 7, Article 33 NMSA 1978] except that receipts from the sale of products other than for subsequent resale in the ordinary course of business, for consumption outside the state, or for use as an ingredient or component part of a manufactured product are subject to the Gross Receipts and Compensating Tax Act as well as to the Natural Gas Processors Tax Act.
B. No gross receipts tax or compensating tax pursuant to the Gross Receipts and Compensating Tax Act shall apply to receipts from storing or using crude oil, natural gas or liquid hydrocarbons, individually or any combination, when stored or used in New Mexico by a "processor", as defined by the Natural Gas Processors Tax Act, or by a person engaged in the business of refining oil, natural gas or liquid hydrocarbons who stores or uses the crude oil, natural gas or liquid hydrocarbons in the regular course of his refining business.
History:
1953 Comp., § 72-16A-12.22, enacted by Laws 1969, ch. 144, § 27; 1970, ch. 13, § 1; 1975, ch. 133, § 2; 1984, ch. 2, § 4; 1989, ch. 115, § 2.
ANNOTATIONS
Cross references.
— For meaning of "processor",
see
7-33-2 NMSA 1978.
The 1989 amendment,
effective July 1, 1989, rewrote Subsection A; and in Subsection B substituted "receipts from storing" for "any person for the privilege of storing", and deleted "thereof" following "combination".
Company not entitled to exemption when selling natural gas to refinery.
— A gas company is neither a user of natural gas nor in the business of refining natural gas when it sells natural gas to a refinery, and, thus, it is not entitled to the exemption provided in Subsection B.
Gas Co. v. O'Cheskey
, 1980-NMCA-085, 94 N.M. 630, 614 P.2d 547
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-36 - Exemption; gross receipts tax; oil and gas consumed in the pipeline transportation of oil and gas products.

Exempted from the gross receipts tax are receipts from the sale of oil, natural gas, liquid hydrocarbon or any combination thereof consumed as fuel in the pipeline transportation of such products.
History:
1953 Comp., § 72-16A-12.24, enacted by Laws 1969, ch. 144, § 29.
ANNOTATIONS
Effective dates.
— Laws 1969, ch. 144, § 68 made Laws 1969, ch. 144, § 29 effective July 1, 1969.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-37 - Exemption; compensating tax; use of oil and gas in the pipeline transportation of oil and gas products.

Exempted from the compensating tax is the use of oil, natural gas, liquid hydrocarbon or any combination thereof as fuel in the pipeline transportation of such products.
History:
1953 Comp., § 72-16A-12.25, enacted by Laws 1969, ch. 144, § 30.
ANNOTATIONS
Effective dates.
— Laws 1969, ch. 144, § 68 made Laws 1969, ch. 144, § 30 effective July 1, 1969.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-38 - Exemption; compensating tax; use of electricity in the production, conversion and transmission of electricity.

Exempted from the compensating tax is electricity used in the production and transmission of electricity, including transmission using voltage source conversion technology.
History:
1953 Comp., § 72-16A-12.26, enacted by Laws 1969, ch. 144, § 31; 2012, ch. 12, § 1.
ANNOTATIONS
The 2012 amendment,
effective July 1, 2012, exempted electricity used in the transmission of electricity using voltage source conversion technology and after "transmission of electricity", added the remainder of the sentence.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-38.1 - Exemption; gross receipts tax; interstate telecommunications services.

Exempted from the gross receipts tax are receipts from the sale or provision of interstate telecommunications services subject to the Interstate Telecommunications Gross Receipts Tax Act [Chapter 7, Article 9C NMSA 1978].
History:
Laws 1992, ch. 50, § 12 and Laws 1992, ch. 67, § 12; 1993, ch. 31, § 8.
ANNOTATIONS
The 1993 amendment,
effective July 1, 1993, deleted the "to the extent that receipts from such services are" following "services" and "tax under" following "subject to".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-38.2 - Exemption; gross receipts tax; sale of certain telecommunications services.

Exempted from the gross receipts tax are receipts of a home service provider from providing mobile telecommunications services to persons whose place of primary use is outside New Mexico, regardless of where the mobile telecommunications services originate, terminate or pass through. For the purposes of this section, "home service provider", "mobile telecommunications services" and "place of primary use" have the meanings given in the federal Mobile Telecommunications Sourcing Act.
History:
Laws 2002, ch. 18, § 2.
ANNOTATIONS
Cross references.
— For the federal Mobile Telecommunications Sourcing Act,
see
4 U.S.C.S. § 116 et seq.
Effective dates.
— Laws 2002, ch. 18, § 8 made Laws 2002, ch. 18, § 2 effective August 1, 2002.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-39 - Exemption; gross receipts tax; fees from social organizations.

A. Exempted from the gross receipts tax are the receipts from dues and registration fees of nonprofit social, fraternal, political, trade, labor or professional organizations and business leagues.
B. For the purposes of this section:
(1) "dues" means amounts that a member of an organization pays at recurring intervals to retain membership in an organization where such amounts are used for the general maintenance and upkeep of the organization; and
(2) "registration fees" means amounts paid by persons to attend a specific event sponsored by an organization to defray the cost of the event.
History:
1953 Comp., § 72-16A-12.27, enacted by Laws 1969, ch. 144, § 32; 1977, ch. 141, § 1.
ANNOTATIONS
Compiler's notes.
— The following cases were decided under the prior version of this section which exempted nonprofit business organizations.
It is not necessary for all members to engage in business
in order for a group to constitute a business organization.
AAA v. Bureau of Revenue
, 1975-NMSC-058, 88 N.M. 462, 541 P.2d 967.
Nonprofit business organization exempt.
— The supreme court has decided that a nonprofit business organization, the receipts of which are from dues and registration fees of its members, is exempt from the payment of a gross receipts tax.
Twining Coop. Domestic Water & Sewer Ass'n v. Bureau of Revenue
, 1976-NMCA-052, 89 N.M. 345, 552 P.2d 476, cert. denied, 90 N.M. 7, 558 P.2d 619.
The American Automobile Association is a "business organization"
in the common understanding of that term. It is a group of people that has a more or less constant membership, a body of officers, a purpose and a set of regulations, and engages in a commercial activity, even though it is a nonprofit activity and the receipts involved in AAA's activities are from dues and registration fees.
AAA v. Bureau of Revenue
, 1975-NMSC-058, 88 N.M. 462, 541 P.2d 967.
A "nonprofit" corporation
means a corporation which distributes no part of the income or profit to its members, directors or officers.
AAA v. Bureau of Revenue
, 1975-NMSC-012, 87 N.M. 330, 533 P.2d 103,
rev'd on other grounds
, 1975-NMSC-058, 88 N.M. 462, 541 P.2d 967.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-40 - Exemption; gross receipts tax; purses and jockey remuneration at New Mexico racetracks; receipts from gross amounts wagered.

A. Exempted from the gross receipts tax are the receipts of horsemen, jockeys and trainers from race purses at New Mexico horse racetracks subject to the jurisdiction of the state racing commission.
B. Exempted from the gross receipts tax are the receipts of a racetrack from the commissions and other amounts authorized by Section 60-1-10 NMSA 1978 [repealed] to be retained by a racetrack conducting horse races under the authority of a license from the state racing commission.
History:
1953 Comp., § 72-16A-12.28, enacted by Laws 1970, ch. 60, § 2; 1971, ch. 145, § 1; 1985, ch. 137, § 1; 1989, ch. 260, § 1.
ANNOTATIONS
Bracketed material.
— Laws 2007, ch. 39, § 34 repealed 60-1-10 NMSA 1978, effective July 1, 2007.
Cross references.
— For the state racing commission,
see
60-1A-3 NMSA 1978.
The 1989 amendment,
effective June 16, 1989, deleted "admissions and" following "receipts from" in the section heading; and in Subsection B restructured former Paragraph (2) so as to constitute the language beginning with "the commissions", deleted former Paragraph (1) which read "admissions to the racetrack on any racing day", and deleted former Paragraph (3) which read "the tax imposed by Paragraph (1) of Subsection A of Section 60-1-15 NMSA 1978".
Enactment of exemption shows no intent as to prior treatment.
— Since the reporting periods for the receipts of a horse owner and a horse trainer are prior to the enactment of this section, no exemption under it is available. The fact that an exemption was subsequently enacted does not show a legislative intent that the receipts were not subject to the gross receipts tax prior to enactment of the exemption.
Till v. Jones
, 1972-NMCA-046, 83 N.M. 743, 497 P.2d 745, cert. denied, 83 N.M. 740, 497 P.2d 742.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-41 - Exemption; gross receipts tax; religious activities.

Exempted from the gross receipts tax are the receipts of a minister of a religious organization, which organization has been granted an exemption from federal income tax by the United States commissioner of internal revenue as an organization described in Section 501(c)(3) of the United States Internal Revenue Code of 1954, as amended or renumbered, from religious services provided by the minister to an individual recipient of the service.
History:
1953 Comp., § 72-16A-12.29, enacted by Laws 1972, ch. 61, § 2.
ANNOTATIONS
Cross references.
— For Section 501(c)(3) of the Internal Revenue Code of 1954,
see
26 U.S.C. § 501(c)(3).
Am. Jur. 2d, A.L.R. and C.J.S. references.
— Religious organization's exemption from sales or use tax, 54 A.L.R.3d 1204.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-41.1 - Exemption; gross receipts tax and governmental gross receipts tax; athletic facility surcharge.

Exempted from the gross receipts tax and from the governmental gross receipts tax are the receipts of a university from an athletic facility surcharge imposed pursuant to the University Athletic Facility Funding Act [21-30-1 to 21-30-10 NMSA 1978].
History:
Laws 2007, ch. 117, § 1.
ANNOTATIONS
Emergency clause.
— Laws 2007, ch. 117, § 12 contained an emergency clause and was approved March 30, 2007.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-41.2 - Deleted.

History:
Laws 2007, ch. 172, § 13.
ANNOTATIONS
Compiler's notes.
— Laws 2008, ch. 11, § 1, amended Laws 2007, ch. 172, § 29, to provide that if the requirements of Subsection A of Laws 2007, ch. 172, § 29 were not fulfilled, the effective date of this section would be July 1, 2010, provided that prior to January 1, 2010, the economic development department certify to the taxation and revenue department that construction of a railroad locomotive refueling facility project in Dona Ana county had commenced, including the land acquisition, acquisition of all necessary permits and commencement of actual construction. On February 16, 2010, the New Mexico compilation commission received a letter from the economic development department dated February 12, 2010, notifying the compilation commission that while Union Pacific had made the land acquisition, construction of a railroad locomotive refueling facility project in Do a Ana county had not commenced as required by Laws 2007, ch. 172, § 29. Therefore, Section 7-9-41.2 NMSA 1978 failed to become effective and was deleted by the compiler. For provisions of former section,
see
the 2013 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-41.3 - Exemption; receipts from sales by disabled street vendors.

A. Exempt from payment of the gross receipts tax are receipts from the sale of goods by a disabled street vendor.
B. As used in this section:
(1) "disabled" means to be blind or permanently disabled with medical improvement not expected pursuant to 42 USCA 421 for purposes of the federal Social Security Act or to have a permanent total disability pursuant to the Workers' Compensation Act [Chapter 52, Article 1 NMSA 1978]; and
(2) "street vendor" means a person licensed by a local government to sell items of tangible personal property by newly setting up a sales site daily or selling the items from a moveable cart, tray, blanket or other device.
History:
Laws 2007, ch. 45, § 13 and 2007, ch. 237, § 1.
ANNOTATIONS
Cross references.
— For the federal Social Security Act,
see
42 U.S.C. § 301.
Duplicate laws.
— Laws 2007, ch. 45, § 13 and Laws 2007, ch. 237, § 1 enacted identical new sections. The section was set out as enacted by Laws 2007, ch. 237, § 1, effective June 15, 2007.
See
12-1-8 NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-41.4 - Exemption; officiating at New Mexico activities association-sanctioned school events.

Exempted from the gross receipts tax are the receipts from refereeing, umpiring, scoring or other officiating at school events sanctioned by the New Mexico activities association.
History:
Laws 2009, ch. 62, § 1.
ANNOTATIONS
Effective dates.
— Laws 2009, ch. 62 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 19, 2009, 90 days after the adjournment of the legislature.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-41.5 - Exemption; nonprofit hospitals from local option gross receipts taxes.

A. Exempted from any local option gross receipts tax, but not the state gross receipts tax, are receipts of a nonprofit hospital licensed by the department of health.
B. As used in this section, "nonprofit hospital" means a hospital that has been granted exemption from federal income tax by the United States commissioner of internal revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code.
History:
Laws 2019, ch. 270, § 34.
ANNOTATIONS
Cross references.
— For Section 501(c)(3) of the Internal Revenue Code of 1986,
see
26 U.S.C. § 501(c)(3).
Effective dates.
— Laws 2019, ch. 270, § 60 made Laws 2019, ch. 270, § 34 effective July 1, 2019.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-42 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1984, ch. 2, § 11, repealed 7-9-42 NMSA 1978, enacted by Laws 1973, ch. 67, § 2, relating to the exemption of the receipts from the leasing or licensing of theatrical and television films and tapes from the gross receipts and compensating tax, effective February 11, 1984. For present provisions relating to exemption of receipts from leasing and licensing theatrical and television films and tapes,
see
7-9-76.2 NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-43.1 - Nontaxable transaction certificates not required by liquor wholesalers.

Notwithstanding the provisions of Section 7-9-43 NMSA 1978, a liquor wholesaler licensed as a wholesaler by the superintendent of regulation and licensing pursuant to the Liquor Control Act [60-3A-1 NMSA 1978 et seq.] is not required to obtain a nontaxable transaction certificate from a person issued a retailer's, dispenser's, restaurant, public service or governmental license by the superintendent of regulation and licensing pursuant to the Liquor Control Act for the purpose of taking deductions under the Gross Receipts and Compensating Tax Act.
History:
Laws 1981, ch. 333, § 1; 1992, ch. 39, § 4.
ANNOTATIONS
The 1992 amendment,
effective July 1, 1992, substituted "as a wholesaler by the superintendent of regulation and licensing pursuant to the Liquor Control Act" for "by the department of alcoholic beverage control", and substituted all of the present language beginning with "person" for "liquor retailer licensed by the department of alcoholic beverage control for the purpose of taking deductions under the Gross Receipts and Compensating Tax Act".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-44 - Repealed.

History:
1953 Comp., § 72-16A-13.1, enacted by Laws 1969, ch. 144, § 34; 1983, ch. 220, § 8; 1990, ch. 41, § 7; 1992, ch. 39, § 5; 1993, ch. 31, § 10; 2001, ch. 343, § 3; repealed by Laws 2018, ch. 56, § 2.
ANNOTATIONS
Repeals.
— Laws 2018, ch. 56, § 2 repealed 7-9-44 NMSA 1978, as enacted by Laws 1969, ch. 144, § 34, relating to suspension of the right to use a nontaxable transaction certificate, effective March 2, 2018. For provisions of former section,
see
the 2017 NMSA 1978 on
NMOneSource.com
.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-48 - Deduction; gross receipts tax; governmental gross receipts; sale of a service for resale.

Receipts from selling a service for resale may be deducted from gross receipts or from governmental gross receipts if the sale is made to a person who delivers a nontaxable transaction certificate to the seller or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978. The buyer must resell the service in the ordinary course of business and the resale must be subject to the gross receipts tax or governmental gross receipts tax.
History:
1953 Comp., § 72-16A-14.3, enacted by Laws 1969, ch. 144, § 38; 1992, ch. 100, § 6; 2000, ch. 84, § 2; 2021, ch. 65, § 15.
ANNOTATIONS
The 2021 amendment,
effective July 1, 2021, provided that a taxpayer may provide the taxation and revenue department alternative evidence to claim a gross receipts tax deduction in lieu of providing a non-taxable transaction certificate; and after "certificate to the seller", added "or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978", and after "buyer", deleted "delivering the nontaxable transaction certificate".
The 2000 amendment,
effective July 1, 2000, in the second sentence, substituted "resell the service" for "separately state the value of the service purchased in his charge for the service on its subsequent sale, and the subsequent sale must be" and inserted "the resale must be" preceding "subject to the gross receipts tax".
The 1992 amendment,
effective July 1, 1992, inserted "governmental gross receipts" in the section catchline; inserted "or from governmental gross receipts" in the first sentence, while adding "to the seller" at the end of that sentence; and added "or governmental gross receipts tax" at the end of the second sentence.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-49 - Deduction; gross receipts tax; sale of tangible personal property and licenses for leasing.

A. Except as otherwise provided by Subsection B of this section, receipts from selling tangible personal property and licenses may be deducted from gross receipts if the sale is made to a person who delivers a nontaxable transaction certificate to the seller or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978. The buyer shall be engaged in a business that derives a substantial portion of its receipts from leasing or selling tangible personal property or licenses of the type sold. The buyer may not utilize the tangible personal property or license in any manner other than holding it for lease or sale or leasing or selling it either by itself or in combination with other tangible personal property or licenses in the ordinary course of business.
B. The deduction provided by this section shall not apply to receipts from selling:
(1) furniture or appliances, the receipts from the rental or lease of which are deductible under Subsection C of Section 7-9-53 NMSA 1978;
(2) coin-operated machines; or
(3) manufactured homes.
History:
1953 Comp., § 72-16A-14.4, enacted by Laws 1969, ch. 144, § 39; 1972, ch. 80, § 1; 1975, ch. 160, § 1; 1979, ch. 338, § 3; 1983, ch. 220, § 9; 1989, ch. 115, § 4; 1991, ch. 203, § 3; 1992, ch. 39, § 7; 2021, ch. 65, § 16.
ANNOTATIONS
The 2021 amendment,
effective July 1, 2021, provided that a taxpayer may provide the taxation and revenue department alternative evidence to claim a gross receipts tax deduction in lieu of providing a non-taxable transaction certificate; and in Subsection A, after "certificate to the seller", added "or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978", and after "buyer", deleted "delivering the nontaxable transaction certificate".
The 1992 amendment,
effective July 1, 1992, inserted "and licenses" in the section catchline and in the first sentence of Subsection A, substituted "that" for "which" and inserted "or licenses" in the second sentence, and inserted "or license" and "or licenses" in the last sentence.
The 1991 amendment,
effective July 1, 1991, substituted "manufactured" for "mobile" in Paragraph (3) in Subsection B and made a minor stylistic change in Subsection A.
The 1989 amendment,
effective July 1, 1989, designated the formerly undesignated provisions as Subsection A; in Subsection A substituted all of the language of the first sentence preceding "may" for "Receipts from selling tangible personal property other than furniture or appliances, the receipts from the rental or lease of which are deductible under Subsection C of Section 7-9-53 NMSA 1978, other than coin-operated machines and other than mobile homes", and substituted "sold" for "leased" at the end of the second sentence; and added Subsection B.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-50 - Deduction; gross receipts tax; lease for subsequent lease.

A. Except as provided otherwise in Subsection B of this section, receipts from leasing tangible personal property or licenses may be deducted from gross receipts if the lease is made to a lessee who delivers a nontaxable transaction certificate to the lessor or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978. The lessee may not use the tangible personal property or license in any manner other than for subsequent lease in the ordinary course of business.
B. The deduction provided by this section does not apply to receipts from leasing:
(1) furniture or appliances, the receipts from the rental or lease of which are deductible under Subsection C of Section 7-9-53 NMSA 1978;
(2) coin-operated machines; or
(3) manufactured homes.
History:
1953 Comp., § 72-16A-14.5, enacted by Laws 1969, ch. 144, § 40; 1972, ch. 80, § 2; 1975, ch. 160, § 2; 1979, ch. 338, § 4; 1983, ch. 220, § 10; 1991, ch. 203, § 4; 1992, ch. 39, § 8; 2021, ch. 65, § 17.
ANNOTATIONS
The 2021 amendment,
effective July 1, 2021, provided that a taxpayer may provide the taxation and revenue department alternative evidence to claim a gross receipts tax deduction in lieu of providing a non-taxable transaction certificate; and in Subsection A, after "certificate to the lessor", added "or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978", and after "lessee", deleted "delivering the nontaxable transaction certificate".
The 1992 amendment,
effective July 1, 1992, in Subsection A, inserted "or licenses" in the first sentence and inserted "or license" in the second sentence.
The 1991 amendment,
effective July 1, 1991, designated the formerly undesignated provision as Subsection A; rewrote the first sentence of Subsection A which read "receipts from leasing tangible personal property other than furniture or appliances, the receipts from the rental or lease of which are deductible under Subsection C of Section 7-9-53 NMSA 1978, other than coin-operated machines and other than mobile homes may be deducted from gross receipts if the lease is made to a lessee who delivers a nontaxable transaction certificate to the lessor"; and added Subsection B.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-51.1 - Repealed.

ANNOTATIONS
Repeals.
— Laws 1995, ch. 50, § 6, repealed 7-9-51.1 NMSA 1978, as enacted by Laws 1993, ch. 31, § 14, relating to gross receipts tax deductions for railway bed materials, effective July 1, 2003. For provisions of former section,
see
the 2002 NMSA 1978 on
NMOneSource.com.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-52.1 - Deduction; gross receipts tax; lease of construction equipment to persons engaged in the construction business.

A. Receipts from leasing construction equipment may be deducted from gross receipts if the construction equipment is leased to a person engaged in the construction business who delivers a nontaxable transaction certificate to the person leasing the construction equipment or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978.
B. The lessee shall only use the construction equipment at the construction location of:
(1) a construction project that is subject to the gross receipts tax upon its completion or upon the completion of the overall construction project of which it is a part;
(2) a construction project that is subject to the gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed; or
(3) a construction project that is located on the tribal territory of an Indian nation, tribe or pueblo.
C. As used in this section, "construction equipment" means equipment used on a construction project, including trash containers, portable toilets, scaffolding and temporary fencing.
History:
Laws 2012, ch. 5, § 6; 2021, ch. 65, § 20.
ANNOTATIONS
The 2021 amendment,
effective July 1, 2021, provided that a taxpayer may provide the taxation and revenue department alternative evidence to claim a gross receipts tax deduction in lieu of providing a non-taxable transaction certificate; in Subsection A, after "construction equipment", added "or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978", and in Subsection B, after "lessee", deleted "delivering the nontaxable transaction certificate".
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-54.1 - Deduction; gross receipts from sale of aerospace services to certain organizations.

A. Receipts from performing or selling an aerospace service for resale may be deducted from gross receipts if the sale is made to a buyer who delivers a nontaxable transaction certificate or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978. The buyer shall separately state the value of the aerospace service purchased in the buyer's charge for the aerospace service on its subsequent sale to an organization or, if the buyer is an organization, on the organization's subsequent sale to the United States, and the subsequent sale shall be in the ordinary course of business of selling aerospace services to an organization or to the United States.
B. As used in this section:
(1) "aerospace services" means research and development services sold to or for resale to an organization for resale by the organization to the United States air force; and
(2) "organization" means an organization described in Subsection A of Section 7-9-29 NMSA 1978 other than a prime contractor operating facilities in New Mexico designated as a national laboratory by act of congress.
History:
Laws 1992, ch. 40, § 1; 1993, ch. 310, § 1; 1994, ch. 45, § 5; 1995, ch. 183, § 1; 2021, ch. 65, § 21.
ANNOTATIONS
Cross references.
— For Spaceport Development Act,
see
58-31-1 NMSA 1978 et seq.
The 2021 amendment,
effective July 1, 2021, provided that a taxpayer may provide the taxation and revenue department alternative evidence to claim a gross receipts tax deduction in lieu of providing a non-taxable transaction certificate, removed a table containing gross receipts tax deduction amounts, and reorganized the section; deleted former Subsection A and redesignated former Subsection B as Subsection A; in Subsection A, after "performing or selling", deleted "on or after October 1, 1995", after "certificate", added "or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978", and after "buyer", deleted "delivering the nontaxable transaction certificate"; and deleted former Subsection C and added a new Subsection B.
The 1995 amendment,
effective July 1, 1995, rewrote Subsection A, inserted "if the buyer is an organization, on the organization's subsequent sale" in Subsection B, and substituted "or for resale to an organization" for "the United States or any agency or instrumentality thereof" in Subsection C.
The 1994 amendment,
effective July 1, 1994, substituted "sold to or for resale to" for "performed or sold by" in Subparagraph A(1)(a) and inserted "performing or" in the first sentence in Subsection B.
The 1993 amendment,
effective July 1, 1993, rewrote this section to the extent that a detailed comparison is impracticable.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-54.3 - Deduction; gross receipts tax; wind and solar generation equipment; sales to governments.

A. Receipts from selling wind generation equipment or solar generation equipment to a government for the purpose of installing a wind or solar electric generation facility may be deducted from gross receipts.
B. The deduction allowed pursuant to this section shall not be claimed for receipts from an expenditure for which a taxpayer claims a credit pursuant to Section 7-2-18.25, 7-2A-25 or 7-9G-2 NMSA 1978.
C. As used in this section:
(1) "government" means the United States or the state or a governmental unit or a subdivision, agency, department or instrumentality of the federal government or the state;
(2) "related equipment" means transformers, circuit breakers and switching and metering equipment used to connect a wind or solar electric generation plant to the electric grid;
(3) "solar generation equipment" means solar thermal energy collection, concentration and heat transfer and conversion equipment; solar tracking hardware and software; photovoltaic panels and inverters; support structures; turbines and associated electrical generating equipment used to generate electricity from solar thermal energy; and related equipment; and
(4) "wind generation equipment" means wind generation turbines, blades, nacelles, rotors and supporting structures used to generate electricity from wind and related equipment.
History:
Laws 2002, ch. 37, § 8; 2010, ch. 77, § 2; 2010, ch. 78, § 2.
ANNOTATIONS
The 2010 amendment,
effective July 1, 2010, in the catchline, after "wind", deleted "energy" and added "and solar" and after "sales to", deleted "government agencies" and added "governments"; in Subsection A, after "selling wind generation", deleted "nacelles, rotors or related equipment to the United States or New Mexico or any governmental unit or subdivision, agency, department or instrumentality thereof, if such equipment is installed on a supporting structure" and added "equipment or solar generation equipment to a government for the purpose of installing a wind or solar electric generation facility"; and added Subsections B and C.
Duplicate laws.
— Laws 2010, ch. 77, § 2 and Laws 2010, ch. 78, § 2 enacted identical amendments to this section. The section was set out as amended by Laws 2010, ch. 78, § 2.
See
12-1-8 NMSA 1978.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-54.4 - Deduction; compensating tax; space-related test articles.

A. The value of space-related test articles used in New Mexico exclusively for research or testing, placing on public display after research or testing or storage for future research, testing or public display may be deducted in computing compensating tax due. This subsection does not apply to any other use of a space-related test article.
B. The value of equipment and materials used in New Mexico for research or testing, or for supporting the research or testing of, space-related test articles or for storage of such equipment or materials for research or testing, or supporting the research and testing of, space-related test articles may be deducted in computing compensating tax due. This subsection does not apply to any other use of such equipment and materials.
C. As used in this section, a "space-related test article" is a material or device intended to be used primarily in research or testing to determine properties and qualities of the material or properties, qualities or functioning of a device or technology when the principal use of the material, device or technology is intended to be in space or as part of, or associated with, a space vehicle.
History:
1978 Comp., § 7-9-54.4, enacted by Laws 2003, ch. 62, § 4.
ANNOTATIONS
Effective dates.
— Laws 2003, ch. 62, § 5 made Laws 2003, ch. 62, § 4 effective July 1, 2003.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-54.5 - Deduction; compensating tax; test articles.

A. The value of test articles upon which research or testing is conducted in New Mexico pursuant to a contract with the United States department of defense may be deducted in computing the compensating tax due.
B. As used in this section, "test article" means a material or device upon which research or testing is conducted to determine the properties and qualities of the material or the properties, qualities or functioning of the device or a technology used with the device.
C. The deduction provided by this section does not apply to the value of property purchased by a prime contractor operating a facility designated as a national laboratory by an act of congress.
History:
Laws 2004, ch. 16, § 3.
ANNOTATIONS
Emergency clause.
— Laws 2004, ch. 16, § 4 contained an emergency clause and was approved February 27, 2004.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-56 - Deduction; gross receipts tax; intrastate transportation and services in interstate commerce.

A. Receipts from transporting persons or property from one point to another in this state may be deducted from gross receipts when such persons or property, including any special or extra service reasonably necessary in connection therewith, is being transported in interstate or foreign commerce under a single contract.
B. Receipts from handling, storage, drayage or packing of property or any other accessorial services on property, which property has moved or will move in interstate or foreign commerce, when such services are performed by a local agent for a carrier or by a carrier and when such services are performed under a single contract in relation to transportation services, may be deducted from gross receipts.
C. Receipts from providing telephone or telegraph services in this state that will be used by other persons in providing telephone or telegraph services to the final user may be deducted from gross receipts.
History:
1978 Comp., § 7-9-56, enacted by Laws 1994, ch. 112, § 2.
ANNOTATIONS
Repeals and reenactments.
— Laws 1994, ch. 112, § 2 repealed 7-9-56 NMSA 1978, as amended by Laws 1994, ch. 112, § 1, and enacted a new section, effective July 1, 2001.
To deduct receipts under Subsection A,
taxpayer is required to show three items: (1) the receipts must be from transporting persons from one point to another in this state, (2) the transportation must have been in interstate commerce and (3) the transportation must have been under a single contract.
McKinley Ambulance Serv. v. Bureau of Revenue
, 1979-NMCA-026, 92 N.M. 599, 592 P.2d 515.
Intrastate transportation receipts not deductible.
— Transportation into one state from another is the indispensable test of interstate commerce. That there is both intrastate and interstate transportation under a single contract does not authorize a deduction under Subsection A for receipts attributable to the intrastate transportation.
McKinley Ambulance Serv. v. Bureau of Revenue
, 1979-NMCA-026, 92 N.M. 599, 592 P.2d 515.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-56.1 - Deduction; gross receipts tax; internet services.

On and after July 1, 1998, receipts from providing leased telephone lines, telecommunications services, internet services, internet access services or computer programming that will be used by other persons in providing internet access and related services to the final user may be deducted from gross receipts if the sale is made to a person who is subject to the gross receipts tax or the interstate telecommunications gross receipts tax.
History:
Laws 1998, ch. 92, § 1; 2000, ch. 84, § 6.
ANNOTATIONS
The 2000 amendment,
effective July 1, 2000, substituted "On and after July 1, 1998" for "During the period July 1, 1998, through June 30, 2000" at the beginning of the section.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-56.2 - Deduction; gross receipts tax; hosting world wide web sites.

Receipts from hosting world wide web sites may be deducted from gross receipts. For purposes of this section, "hosting" means storing information on computers attached to the internet.
History:
Laws 1998, ch. 92, § 2.
ANNOTATIONS
Effective dates.
— Laws 1998, ch. 92, § 7 made Laws 1998, ch. 92, § 2 effective July 1, 1998.
2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-57.1 - Repealed.

History:
Laws 1998, ch. 92, § 3; repealed by Laws 2020, ch. 80, § 14.
ANNOTATIONS
Repeals.
— Laws 2020, ch. 80, § 14 repealed 7-9-57.1 NMSA 1978, as enacted by Laws 1998, ch. 92, § 3, relating to deduction, gross receipts tax, sales through world wide web sites, effective July 1, 2020. For provisions of former section,
see
the 2019 NMSA 1978 on
NMOneSource.com
.