New Mexico Administrative Code › Title 3 - TAXATION › Chapter 1 - TAX ADMINISTRATION › Part 4 - FILING › Section 3.1.4.13 - REPORTING ACCORDING TO BUSINESS LOCATION (Applicable to periods beginning July 1, 2021)

Current through Register Vol. 35, No. 13, July 16, 2024
A.
DEFINITIONS
: As used in 3.1.4.13 NMAC, these terms have the following definitions:
(1)
"Gross receipts."
Under Section  7-1-14 NMSA 1978, "gross receipts" is defined as that term is used in the Gross Receipts and Compensating Tax Act, the Leased Vehicle Gross Receipts Tax Act, or the Interstate Telecommunications Gross Receipts Tax Act, as applicable. As used in 3.1.4.13 NMAC, the term "gross receipts from" or similar terms indicates that under the applicable tax acts, the gross receipts would be treated as derived from a particular source or characterized as relating to a particular activity such as the lease or property or the sale of services.
(2)
"In-person service."
Under Section  7-1-14 NMSA 1978 "professional service," as defined, "does not include an in-person service." The term "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. If the service is not generally provided, or does not generally need to be provided, physically in the presence of or upon the customer or upon the customer's property, it is not an "in-person service" simply because it may be or sometimes is performed in the presence of the customer or at the location of the customer's property.
(a) Examples of services that will generally be treated as in-person services include, but are not limited to:
(i) Services provided by healthcare workers that are generally performed or required to be performed on or in the presence of the patient.
(ii) Mental health services, unless the provider generally provides the particular service either only in-person, or with limited exceptions.
(iii) Services provided by athletic trainers or physical therapists for clients.
(iv) Services provided by barbers and cosmetologists.
(v) Home healthcare services.
(b) Examples of services that will generally not be treated as in-person services include, but are not limited to:
(i) Architectural and engineering services. Note, however, that when performed as part of or billed to a construction project, these services are considered "construction-related services" rather than professional services pursuant to Subsection C of Section  7-9-3.4 NMSA 1978, and the reporting location for gross receipts from these services is the construction site per Paragraph (2) of Subsection F of Section  7-1-14 NMSA 1978.
(ii) Legal services.
(iii) Accounting, auditing, and tax preparation services.
(iv) Real estate appraisal services.
(3)
"Professional service."
The term "professional service" as defined in Section  7-1-14 NMSA 1978 means a service, other than an in-person service or construction-related service, that requires either an advanced degree from an accredited post-secondary educational institution or a license from the state to perform. As provided in Paragraph (2) of Subsection A of 3.1.4.13 NMAC, just because a service is provided in person by the service provider does not make it an "in-person" service if the service is not generally provided, or does not generally need to be provided, physically in the presence of or upon the customer or upon the customer's property.
(4)
"Reporting location."
3.1.4.13 NMAC uses the term "reporting location" in place of the term "business location," the term that is used in Sections  7-1-3 and  7-1-14 NMSA 1978 as well as local option taxes to refer to the location code designated by the department and required to be used to report the gross receipts and related deductions subject to gross receipts tax or the value of items whose taxable use is subject to the compensating tax. Like the term "business location," the term "reporting location" refers to the location code and applicable tax rate for reporting gross receipts tax and compensating tax, as designated by the department.
(5)
"Seller's location" or "place of performance."
This regulation may use the terms "seller's location" or "place of performance" or similar terms to refer to the general facts that may be essential for determining the reporting location. In general, a seller's location may include a particular building, including a store or office, or other physical location maintained or operated by or for the seller, or used by the seller, where some designated activity giving rise to gross receipts takes place. If the seller uses no such physical location in New Mexico, and if the seller's domicile is not in New Mexico, then the "seller's location" as used in this regulation is deemed to be outside the state.