reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.8 - TANGIBLE PERSONAL PROPERTY ACQUIRED OUTSIDE NEW MEXICO FOR USE IN NEW MEXICO

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Tangible personal property acquired inside or outside New Mexico as a result of
				a transaction with a person located outside New Mexico which would have been
				subject to the gross receipts tax had the tangible personal property been
				acquired from a person with nexus with New Mexico is subject to the
				compensating tax if that tangible personal property is subsequently used in New
				Mexico. For compensating tax purposes, a transaction would have been "subject
				to the gross receipts tax" when the transaction would have been within New
				Mexico's taxing jurisdiction, the receipts from the transaction would have been
				defined as gross receipts, the receipts would not have been deductible or
				exempt and taxation by New Mexico would not be pre-empted by federal
				law.
B. Example 1: X, a New Mexico
				business, purchases the furniture for a new office from an El Paso, Texas,
				merchant. X brings this furniture into New Mexico in X's truck and puts it in
				the office. If X had purchased the furniture from a New Mexico business, the
				transaction would have been subject to the gross receipts tax. Therefore, X is
				liable for compensating tax measured by the sale price of the furniture.
				However, X may take a credit of up to 5% of the sale price of the furniture
				against the compensating tax liability on this furniture for any sales tax
				which was paid in Texas on the purchase of the furniture. Also, X pays no
				separate tax if tax collected by the seller is shown on the invoice as the New
				Mexico compensating tax collected by the El Paso, Texas, merchant.
C. Example 2: G operates a carnival
				concession. G has purchased tangible personal property in Iowa, to be used as
				prizes for persons performing certain skills at the carnival concession. G is
				subject to the compensating tax on the value of the tangible personal property
				acquired in Iowa, which is used as prizes in New Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.9 - PERSONAL RATHER THAN COMMERCIAL USE OF TANGIBLE PERSONAL PROPERTY OR SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				When a person has delivered a nontaxable transaction certificate for a taxable
				purpose but then uses the service or tangible personal property in a manner
				other than indicated on the nontaxable transaction certificate, then the person
				who delivered the nontaxable transaction certificate is liable for the
				compensating tax on the value of the service or the tangible personal
				property.
B. Example 1: Z operates
				a furniture store in New Mexico. Z issues a nontaxable transaction certificate
				to all of Z's suppliers. Z decides to take a refrigerator out of stock for use
				in Z's home. Because the gross receipts tax was not paid at the time of the
				acquisition, Z must now pay the compensating tax on the value of the
				refrigerator.
C. Example 2: A, a
				garage operator, has the radiator on A's service truck repaired by B, a
				radiator repair specialist. A has previously delivered a nontaxable transaction
				certificate to B. Therefore, B does not pay gross receipts tax on this
				transaction. In this case A is not reselling the radiator repair service to one
				of A's customers; therefore A must pay the compensating tax on the value of the
				repair service. If A does not pay the compensating tax when due, A is also
				liable for penalty and interest, and if A does not pay the compensating tax
				within one year of the due date A may have the right to use nontaxable
				transaction certificates suspended by the secretary for up to one year. See
				prior example.
D. Example 3: G owns
				and operates a grocery store. G bought two dozen brooms for resale and
				delivered a nontaxable transaction certificate. G then removed six of these
				brooms from stock for use in cleaning the store. G is subject to the
				compensating tax on the value of the six brooms removed from stock.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.11 - TANGIBLE PERSONAL PROPERTY ON WHICH THE COMPENSATING TAX HAS BEEN PREVIOUSLY PAID

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Persons who have previously paid the compensating tax on tangible personal
				property introduced into this state are not required to pay the compensating
				tax again on the reintroduction into the state of the same property if the
				property has been under the same ownership continuously since the time it was
				initially introduced into the state.
B. Example: A, a Colorado construction
				company, is awarded the contract for the improvement of a portion of the
				interstate highway in northern New Mexico. One of the pieces of equipment which
				A brings to perform the job is a tractor that A used on another New Mexico job
				earlier in the year. If A can prove that the compensating tax was paid at the
				time of the earlier use of the tractor and that A owned the tractor
				continuously since that time, A does not have to pay the compensating tax
				again.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.12 - PROMOTIONAL GIFTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. If
				a taxpayer uses merchandise for advertising or promotional purposes by giving
				away the merchandise without the requirement of a concurrent purchase, the
				taxpayer is liable for the compensating tax on the value of the merchandise if
				the merchandise was acquired by the taxpayer in a transaction which was not
				subject to the gross receipts tax because the taxpayer furnished a nontaxable
				transaction certificate to the supplier pursuant to Section
				7-9-47
				NMSA 1978 or because the taxpayer acquired this merchandise outside New
				Mexico.
B. If a taxpayer "gives
				away" merchandise or services with a requirement of a concurrent purchase, no
				compensating tax is due on the merchandise or service "given away".
C. Example: X Restaurant gives a free drink
				to Y, a customer, on Y's birthday. The restaurant is not subject to the
				compensating tax on the value of the free drink if the drink is only given when
				there is a requirement of a concurrent purchase. If there is no requirement of
				a concurrent purchase, then the restaurant is liable for the compensating tax
				on the value of the drink if the liquor was acquired by the restaurant in a
				transaction which was not subject to the gross receipts tax because the
				restaurant furnished a nontaxable transaction certificate to its supplier
				pursuant to Section
				7-9-47
				NMSA 1978, because of the operation of Section
				7-9-43.1
				NMSA 1978 or because the taxpayer acquired the merchandise outside New Mexico.
				When restaurants or cocktail lounges promote their business by offering one
				free drink to a customer for every drink purchased, the restaurant or lounge is
				not subject to the compensating tax on the value of the free drink. In this
				situation, the drinks are only "given away" when there is a requirement of a
				concurrent purchase.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.13 - CONSTRUCTION PROJECTS OCCUPIED OR LEASED PRIOR TO SALE

Current through Register Vol. 35, No. 13, July 16, 2024
A. A person engaged in the construction
				business who purchases construction materials, construction services,
				construction-related services or who leases construction equipment using
				nontaxable transaction certificates (nttcs) provided by the department for use
				under Sections
				7-9-51,
				7-9-52
				and
				7-9-52.1
				NMSA 1978 is liable for the compensating tax on the value of the materials and
				services purchased at the time when the construction project is initially
				leased or otherwise occupied prior to the sale. It is immaterial that the
				construction project is leased to enhance its value for sale as is the case
				with so-called income producing property.
B. Example 1: Y is a company which constructs
				office buildings for sale to investors as income producing property. Y has
				issued nttcs to material suppliers and subcontractors. Upon completion of the
				building, Y leases office space to tenants in order to enhance the salability
				of the building. Y is liable for the compensating tax at the time it leases the
				first office.
C. Example 2: Z is
				building an apartment complex consisting of five separate buildings with twenty
				apartments in each building. Z begins renting apartments in each building as
				the building is completed. If Z issued nttcs to purchase construction materials
				and construction services for incorporation into these apartment buildings, Z
				will be liable for compensating tax on the value of the materials and services
				purchased for each building when any apartment in the building is rented. The
				rental of the apartments is a conversion to use by Z. When Z subsequently sells
				any or all of the five buildings, the compensating tax previously paid by Z on
				construction materials and construction services which became an ingredient or
				component part of each building may be credited against the gross receipts tax
				due on the sale.
D. Example 3: R is
				a homebuilder who typically sells the homes he builds either prior to the start
				of construction, or on a speculative basis prior to the completion of the home.
				R has executed nttcs to material suppliers and subcontractors for a specific
				home. Upon completion of the home, R is unable to find a buyer, and decides to
				retain title to the home and use it as his personal home or rent the home to a
				third party until a buyer can be found. R is liable for the compensating tax on
				the value of the construction materials, construction services and
				construction-related services purchased with the nttcs at the time the home is
				initially rented or occupied by the homebuilder prior to the sale.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.14 - PROCESSING PIPE

Current through Register Vol. 35, No. 13, July 16, 2024
A New Mexico buyer who purchases pipe from outside the state
				  is subject to the New Mexico compensating tax on the total value of the pipe at
				  the time it is introduced into New Mexico for use. Value includes charges for
				  labor and material used in processing the pipe when processed outside New
				  Mexico prior to initial introduction into the state.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.15 - MATERIALS USED ON NONTAXABLE PROJECTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Construction materials purchased with a
				nontaxable transaction certificate and subsequently used in a project, other
				than a project located on tribal territory the state taxation of which is
				pre-empted by federal law, which upon completion is not subject to gross
				receipts tax are subject to the compensating tax for the value of materials
				used in the project.
B. Example: X
				construction company purchases a truckload of lumber from A lumber company with
				whom X has previously executed the appropriate nontaxable transaction
				certificate. X takes delivery of, and title to, the lumber at A's yard in New
				Mexico. X then transports the lumber by its own vehicle to a location outside
				New Mexico and incorporates the lumber into a construction project outside New
				Mexico. X is subject to the compensating tax on the value of the lumber
				purchased from A lumber company since the construction project outside New
				Mexico is not subject to gross receipts tax upon completion.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.16 - ORDINARY AND NECESSARY BUSINESS EXPENSE

Current through Register Vol. 35, No. 13, July 16, 2024
Services performed in New Mexico deductible by the purchaser
				  as ordinary and necessary business expenses under the provisions of the
				  Internal Revenue Code are "used" for purposes of Subsection B of Section
				  7-9-7
				  NMSA 1978. Nontaxable transaction certificates may not be issued for such
				  transactions. If a taxpayer acquires the services through the inappropriate use
				  of a nontaxable transaction certificate, the compensating tax is due on the
				  value of the services and the taxpayer's right to issue nontaxable transaction
				  certificates will be jeopardized under the provisions of Section
				  7-9-44 NMSA
				  1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.17 - SERVICES WHICH QUALIFY AS CAPITAL EXPENDITURES

Current through Register Vol. 35, No. 13, July 16, 2024
Services performed in New Mexico which are capitalized under
				  the provisions of the Internal Revenue Code are "used" for purposes of
				  Subsection B of Section
				  7-9-7
				  NMSA 1978. Nontaxable transaction certificates may not be issued for such
				  transactions. If a taxpayer acquires these services through the issuance of a
				  nontaxable transaction certificate, the compensating tax is due on the value of
				  the services, and the taxpayer's right to issue nontaxable transaction
				  certificates will be jeopardized under the provisions of Section
				  7-9-44 NMSA
				  1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.18 - COMPENSATING TAX ON DEALER USE OF PARTS

Current through Register Vol. 35, No. 13, July 16, 2024
The value of parts, motor oils and similar items taken from
				  inventory held for sale, or purchased under Type 2 (resale) NTTCs, by
				  automobile dealers for use in repairing or maintaining vehicles used by the
				  dealers in the operation of the dealerships, as distinguished from vehicles
				  held for sale, is subject to compensating tax. A new vehicle which has been
				  titled and registered, other than pursuant to Subsection C of Section
				  66-3-118
				  NMSA 1978 pertaining to new vehicles held for sale and allowed to be registered
				  without payment of the motor vehicle excise tax, will be treated as a vehicle
				  used in the dealer's business for purposes of applying Section 3.2.10.18
				  NMAC.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.19 - TANGIBLE PERSONAL PROPERTY FURNISHED TO DEALERS BY OUT-OF-STATE SERVICE CONTRACT ADMINISTRATORS

Current through Register Vol. 35, No. 13, July 16, 2024
Tangible personal property, such as contract forms and
				  promotional and administrative materials, furnished to New Mexico dealers by
				  out-of-state companies which undertake to administer automotive service
				  contracts for a fee is property acquired as a result of a transaction with a
				  person located outside New Mexico that would have been subject to the gross
				  receipts tax had the property been acquired from a person with nexus with New
				  Mexico. The value of the tangible personal property is subject to compensating
				  tax to be paid by the dealers when the property is stored, used or consumed in
				  New Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.20 - TELECOMMUNICATIONS SERVICE USED BY HOTELS AND MOTELS

Current through Register Vol. 35, No. 13, July 16, 2024
If a hotel, motel or similar establishment has represented to
				  a company engaged in the business of providing interstate telecommunications
				  service that the hotel, motel or similar establishment is purchasing interstate
				  telecommunication service for use as a service to guests of the hotel, motel or
				  similar establishment for an additional separately stated charge, it is liable
				  for compensating tax on the value of any interstate telecommunications service
				  purchased but not separately stated in its billings to its
				  guests.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.21 - FEDERAL PREEMPTION AND STATE EXEMPTION - CREDIT UNIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
									12
				U.S.C. 1768 exempts federal credit unions
				from state taxation, other than property taxation. Accordingly, the use of
				property in New Mexico by federal credit unions is exempt from compensating
				tax.
B. Section
				58-11-61 NMSA
				1978 exempts from state taxation credit unions organized under or subject to
				the Credit Union Regulatory Act to the same extent that the credit unions
				chartered under federal law are exempt. Therefore the use of property in New
				Mexico by credit unions organized under or subject to the Credit Union
				Regulatory Act is exempt from compensating tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.22 - FEDERAL PREEMPTION - JOB CORPS CONTRACTORS

Current through Register Vol. 35, No. 13, July 16, 2024
29 U.S.C. 1707(c) bars imposition of any use or similar tax
				  on the use by a Job Corps contractor of any property or service in connection
				  with the operation of a Job Corps center, program or activity. Therefore, Job
				  Corps contractors are exempt from the compensating tax with respect to property
				  used in connection with operating a Job Corps center, program or
				  activity.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.23 - COMPENSATING TAX ON SERVICES PERFORMED OUTSIDE THE STATE

Current through Register Vol. 35, No. 13, July 16, 2024
A. For periods after July 1, 2021, if a
				purchaser acquires services performed outside the state in a transaction that
				was not subject to the gross receipts tax and subsequently makes taxable use of
				that service in New Mexico, the service is subject to the gross receipts tax.
				For services that were performed outside the state, the taxable use in New
				Mexico is not subject to compensating tax unless that use is the initial use of
				the service, as that term is defined under Subsection E of Section
				7-9-3
				NMSA 1978 and applicable regulations.
B. Examples:
(1) X acquires financial advisory services
				from Y. Y performs the services entirely outside New Mexico resulting in
				recommendations for investing in certain assets. Y delivers the recommendations
				to X in New Mexico and has no reason to believe that X will not make initial
				use of the recommendations in New Mexico. X does not owe compensating tax on
				the service. Instead, Y owes the gross receipts tax on that service because it
				was initially used in New Mexico.
(2) Same facts as Paragraph (1) of Subsection
				B of 3.2.10.23 NMAC except that Y relies in good faith on X's representation
				that X will make initial use of the recommendations outside New Mexico. X owes
				the compensating tax if initial use of the recommendations is made in New
				Mexico.
(3) Same facts as Paragraph
				(2) of Subsection B of 3.2.10.23 NMAC except that X makes initial use of the
				recommendations outside of New Mexico. Subsequently, X makes use of the
				recommendations in New Mexico. Because that subsequent use is not the initial
				use, X does not owe compensating tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.24 - PURCHASER ENTITLED TO RELY ON SELLER'S STATEMENT AS TO WHETHER TAX WAS CHARGED

Current through Register Vol. 35, No. 13, July 16, 2024
In determining whether compensating tax is owed, the
				  purchaser may rely on the seller's invoice or other written billing or contract
				  documentation that indicates that the seller has charged the gross receipts tax
				  or has included the tax in the amount billed (whether by name or indicating
				  that taxes for the state of New Mexico were charged or included). Under Section
				  7-9-6
				  NMSA 1978, the seller need not state the amount of tax charged or
				  paid.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 11 - PRESUMPTION OF TAXABILITY AND VALUE › Section 3.2.11.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 11 - PRESUMPTION OF TAXABILITY AND VALUE › Section 3.2.11.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
11/15/96, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 11 - PRESUMPTION OF TAXABILITY AND VALUE › Section 3.2.11.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 11 - PRESUMPTION OF TAXABILITY AND VALUE › Section 3.2.11.8 - VALUE - FREIGHT CHARGES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Transportation costs that are paid by the
				seller to the carrier are an element of the sales price of the
				property.
B. Transportation costs
				that are paid to the carrier by the buyer are not an element of the sales price
				of the property.
C. If the buyer
				transports the property in equipment owned or leased by the buyer, the cost of
				the transportation does not increase the value of the property.
D. If the seller transports the property in
				equipment owned or leased by the seller, the cost of the transportation is
				already included in the price of the property and it is considered an element
				of the sales price of the property.
E. If the seller, acting as an agent for the
				buyer, pays the transportation charges, the cost of the transportation is not
				an element of the sales price.
F.
				Note: Section 3.2.11.8 NMAC also applies to the treatment of freight charges
				for purposes of computing gross receipts tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 11 - PRESUMPTION OF TAXABILITY AND VALUE › Section 3.2.11.9 - VALUE OF DRUG SAMPLES

Current through Register Vol. 35, No. 13, July 16, 2024
The compensating tax on drug samples manufactured outside New
				  Mexico and distributed to New Mexico physicians free of charge is assessed on
				  the value of the finished product in the hands of the manufacturer. This value
				  is the full price which would have been charged by the manufacturer if the
				  samples had been sold, not just the cost of materials and packaging supplies.
				  As of January 1, 1999, the compensating tax does not apply to the use of drugs
				  which are "prescription drugs".
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 11 - PRESUMPTION OF TAXABILITY AND VALUE › Section 3.2.11.10 - RESTAURANT FOOD FOR EMPLOYEES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Restaurant owners are liable for
				compensating tax on the value of food served to employees where no amount
				includable in the owner's gross receipts is received from the employees for the
				food served to them, if such food was purchased by the owner subject to the
				deduction from gross receipts for sales of tangible personal property for
				subsequent sale and no compensating tax was paid.
B. For convenience in accounting and
				auditing, two dollars per day per employee shall be used as the value of the
				food served to employees in computing the compensating tax due.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 12 - LIABILITY OF USER FOR PAYMENT OF COMPENSATING TAX › Section 3.2.12.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 12 - LIABILITY OF USER FOR PAYMENT OF COMPENSATING TAX › Section 3.2.12.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 12 - LIABILITY OF USER FOR PAYMENT OF COMPENSATING TAX › Section 3.2.12.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
11/15/96, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 12 - LIABILITY OF USER FOR PAYMENT OF COMPENSATING TAX › Section 3.2.12.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 12 - LIABILITY OF USER FOR PAYMENT OF COMPENSATING TAX › Section 3.2.12.8 - SEPARATE STATING OF THE TAX

Current through Register Vol. 35, No. 13, July 16, 2024
A seller of property who is required to collect and pay over
				  to the department the compensating tax due on the value of property sold for
				  delivery into New Mexico must separately state the compensating tax on the
				  invoice. If the compensating tax is not separately stated on the invoice, it
				  will be presumed that it was not collected and paid over and the buyer must pay
				  the compensating tax. The seller who is liable to collect and pay over the
				  compensating tax may become liable for penalties and interest if the seller
				  fails to collect and pay over.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 12 - LIABILITY OF USER FOR PAYMENT OF COMPENSATING TAX › Section 3.2.12.9 - GENERAL EXAMPLE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The following example illustrates the application of Section
				7-9-9
				NMSA 1978.
B. Example: A purchases
				a piece of equipment from X, an El Paso dealer, for $1,000. X is registered
				with the department as an agent for collection of compensating tax. X bills A
				as follows:
Equipment
$ 1,000
N.M. Comp. Tax
50
$ 1,050
Since X is registered as an agent to collect and pay over
				  compensating tax pursuant to Section
				  7-9-10
				  NMSA 1978 and collected compensating tax from A, A is relieved of any
				  compensating tax liability, even if X fails to remit the tax to the
				  department.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 13 - AGENTS FOR COLLECTION OF COMPENSATING TAX - DUTIES › Section 3.2.13.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 13 - AGENTS FOR COLLECTION OF COMPENSATING TAX - DUTIES › Section 3.2.13.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 13 - AGENTS FOR COLLECTION OF COMPENSATING TAX - DUTIES › Section 3.2.13.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
11/15/96, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 13 - AGENTS FOR COLLECTION OF COMPENSATING TAX - DUTIES › Section 3.2.13.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
11/15/96, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Admission:
An "admission" to a recreational, athletic or
				entertainment event includes the granting of permission to observe or
				participate in a recreational, athletic or entertainment activity.
(1) Example 1: City C charges a "greens fee"
				for use of a public golf course maintained by the city. Receipts from the
				greens fee are admissions.
(2)
				Example 2: County Y charges a fee for use of a swimming pool and surrounding
				area maintained by the county. Receipts from this fee are admissions.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.9 - "RECEIPTS" AND "TAXABLE ACTIVITY" DEFINED

Current through Register Vol. 35, No. 13, July 16, 2024
A. "Receipts" means the total amount of money
				or the value of other consideration received by the state of New Mexico or any
				agency, institution, instrumentality or political subdivision thereof from
				another person.
B. Example: City Y
				operates a zoo. Admissions are charged; annual passes are also sold. A
				nonprofit organization, called Zoo People, is established by concerned citizens
				to provide various services to or for the zoo. Zoo People collects donations to
				defray the costs of its activities on behalf of the zoo. The zoo agrees to
				provide a limited number of annual passes to the organization in exchange for
				certain services. Zoo People sells these passes through raffles and other
				means. Although Zoo People does not turn over the proceeds from these sales to
				the zoo, the money helps pay for services provided to or for the zoo. The value
				of the services supplied is other consideration. City Y has receipts equal to
				the value of the consideration, up to the value of the passes supplied. The zoo
				also occasionally exchanges animals with other zoos which are parts of the
				state of New Mexico. In an exchange, the value of the other consideration
				received (in this case the value of the animal received) must be included in
				receipts.
C. Money or other
				consideration received in transactions among parts of an agency, institution,
				instrumentality or political subdivision are not receipts and therefore are not
				governmental gross receipts.
D.
				Example: City A's water department is operated on an enterprise basis. It sells
				water to City A's recreation department which must pay monthly, just as all of
				the water department's outside customers do. This is a transaction entirely
				within City A. City A as a whole has no receipts and therefore no governmental
				gross receipts from the transaction; money merely moved from one department's
				account to another's.
E. As used in
				Part 3.2.20 NMAC, the term "taxable activity" means:
(1) the sale of tangible personal property
				other than water from facilities open to the general public;
(2) the sale of water by a utility owned or
				operated by a political subdivision of New Mexico;
(3) the performance of or admissions to
				recreational, athletic or entertainment services or events in facilities open
				to the general public; or
(4) the
				performance of refuse collection, refuse disposal or sewage services.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.10 - "FACILITY OPEN TO THE GENERAL PUBLIC" DEFINED

Current through Register Vol. 35, No. 13, July 16, 2024
A. The term "facility open to the general
				public" means a physical structure or location through which a member of the
				general public may transact business with the governmental entity to purchase
				tangible personal property or a service. A "facility open to the general
				public" does not necessarily involve the personal physical access by the member
				of the general public to the physical structure or location so long as any
				member of the general public may arrange through the facility the purchase of
				tangible personal property or a service.
B. Example: State agency X publishes a
				magazine which it sells to the general public. The magazine is physically
				prepared and printed in State A. It is mailed to subscribers through delivery
				in State A to the United States postal service. A person may subscribe to the
				magazine only by contacting a subscription service located in State B. Although
				there is little, if any, direct contact between the agency publishing the
				magazine and its customers, nevertheless the agency is selling tangible
				personal property through a facility open to the general public. Its receipts
				from selling the magazine are governmental gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.11 - INTANGIBLES - INDEBTEDNESS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Proceeds from the sale of indebtedness by
				any agency, institution, instrumentality or political subdivision of the state
				of New Mexico are not receipts from a taxable activity and are not governmental
				gross receipts.
B. Receipts of any
				agency, institution, instrumentality or political subdivision of the state of
				New Mexico from repayment of indebtedness are not receipts from a taxable
				activity and are not governmental gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.12 - INTANGIBLES - RECEIPTS FROM SALE OF LICENSES OR PERMITS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts of any agency, institution,
				instrumentality or political subdivision of the state of New Mexico from a
				transaction which is primarily the granting of a license or a permit other than
				admissions to recreational, athletic or entertainment services or events are
				not governmental gross receipts, even if tangible evidence of the license or
				permit is given to the licensee or permittee.
B. Example 1: Under the Motor Vehicle Code,
				the state of New Mexico requires resident drivers of motor vehicles to be
				licensed by the taxation and revenue department. Upon passing of certain tests
				and payment of a fee for the license, the driver is licensed and a card is
				issued to a qualifying driver containing the driver's picture and certain
				information about the driver. The card is merely the physical evidence that the
				driver to whom the card was issued is licensed with the department in
				accordance with law. Receipts from issuing such driver's licenses are not
				receipts from the sale of tangible personal property and are not governmental
				gross receipts.
C. Example 2:
				Several municipalities (under Section
				3-38-1
				NMSA 1978) and counties (under Section
				4-37-1
				NMSA 1978) require persons engaged in certain types of business to obtain a
				license prior to engaging or continuing to engage in that business. A
				certificate is issued documenting the granting of the license; sometimes the
				certificate is required to be displayed on the premises of the licensed
				business. Receipts from issuing such licenses are not receipts from the sale of
				tangible personal property and are not governmental gross receipts.
D. Example 3: Marriage licenses are required
				of persons desiring to marry in the state of New Mexico. Upon payment of the
				fee and other requirements, a document is issued. Receipts from issuing such
				licenses are not receipts from the sale of tangible personal property and are
				not governmental gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.13 - REPORTING, FILING OR REGISTRATION FEES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Whenever a person is required by law to
				report to or register with a governmental agency or to register possession or
				use of tangible personal property, receipts of an agency, institution,
				instrumentality or political subdivision of the state of New Mexico from such
				registrations are not governmental gross receipts, regardless of whether
				tangible personal property is given to the person registering as evidence of
				the registration.
B. Example 1: The
				owner or operator of a facility in which a hazardous chemical is present in
				certain quantities is required to file an inventory report on such chemicals. A
				fee is charged for each inventory form filed. Receipts from such fees are not
				governmental gross receipts.
C.
				Example 2: The New Mexico owner of a motor vehicle which is to be driven upon
				the public highways is obliged to register the vehicle with the taxation and
				revenue department. A metal plate, to be affixed to the motor vehicle, is given
				to the owner upon registration as evidence of the registration. The transaction
				is not primarily the sale of tangible personal property but the registration of
				the motor vehicle. Receipts from such registrations are not governmental gross
				receipts.
D. Fees charged by any
				agency, institution, instrumentality or political subdivision of the state of
				New Mexico as a pre-condition for official action by that entity are not
				receipts from a taxable activity.
E. Example 1: Docketing fees are charged by
				New Mexico courts to defray the administrative costs of accepting a case. Cases
				will not be accepted in absence of payment of the fee. Such fees are not
				governmental gross receipts.
F.
				Example 2: The state public regulation commission charges fees for
				incorporating a corporation and will not recognize the corporation unless the
				fees are paid. Such fees are not governmental gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.14 - RECEIPTS FROM GRANTING LICENSES TO USE REAL PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts of any agency, institution,
				instrumentality or political subdivision of the state of New Mexico from
				granting licenses to use real property, other than admissions or the grantings
				of permission to participate in a recreational, athletic or entertainment
				activity, or to park vehicles, tie-down spaces or dock boats, are not receipts
				from a taxable activity. Such revenues are not governmental gross
				receipts.
B. Example 1: City X
				operates a parking garage open to the general public. It sells permits for use
				of designated parking spaces for an entire month. It also charges a fee for use
				of any undesignated spaces on a hourly basis. The revenues from the monthly
				permits and the hourly use charges are governmental gross receipts.
C. Example 2: The commissioner of public
				lands receives fees from granting ranchers the right to graze livestock on
				public lands. These fees are not governmental gross receipts.
D. Example 3: University A rents its
				auditorium to a private group for a rock concert. The rental agreement calls
				for payment to A of a flat fee plus a percentage of the gate. A's receipts are
				receipts from the granting of a license to use real property and are not
				governmental gross receipts. If, in addition to the basic terms of the rental
				arrangement, A also agreed to furnish security, janitorial services and ticket
				selling services for additional fees, A's receipts from performing such
				services are not governmental gross receipts because these services are not
				refuse collection, refuse disposal, sewage or recreational, entertainment or
				athletic services.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.15 - RECEIPTS FROM GRANTING LICENSES TO USE INFORMATION OR PERSONAL PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts of any
				agency, institution, instrumentality or political subdivision of the state of
				New Mexico from granting licenses to use information or personal property are
				not receipts from a taxable activity. Such revenues are not governmental gross
				receipts.
B. Example 1: A
				governmental agency charges a fee for electronic access to its data files. The
				fee is composed of two parts, a monthly connection charge and a charge per item
				searched. The charges are not governmental gross receipts.
C. Example 2: A governmental agency charges a
				fee for use by private persons of its telefax machine to transmit documents to
				other locations. Receipts from the fee are not governmental gross
				receipts.
D. Example 3: For a fee,
				a state museum allows state officials to borrow paintings to decorate their
				state offices. The museum's receipts from these fees are receipts from granting
				a license to use personal property and are not governmental gross
				receipts.
E. Example 4: A library
				provides a coin-operated photocopying machine for use by its patrons. Receipts
				from use of the machine are receipts from granting a license to use personal
				property and are not governmental gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.16 - RECEIPTS FROM LEASING

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Receipts of any agency, institution, instrumentality or political subdivision
				of the state of New Mexico from leasing real property or tangible personal
				property are not receipts from a taxable activity.
B. Example 1: Municipality X, under an
				industrial development project agreement with Company A, has arranged for the
				construction and equipping of a factory which it leases to Company A. The lease
				sets a monthly fee sufficient to cover the repayment of bonds issued by the
				municipality which provided the funds for the construction and equipping of the
				factory. At the end of the lease period, Company A may buy the factory and its
				equipment for a stated sum. The monthly receipts of the municipality from the
				lease are not governmental gross receipts but its receipts from the sale of the
				project's tangible personal property at the end of the lease are governmental
				gross receipts.
C. Example 2:
				Municipality B owns a baseball stadium which it leases to a professional team
				on a long-term basis for the team's use as its home park for specified portions
				of each year covered by the lease. B receives a fixed annual fee plus a
				percentage of gate receipts as well as a percentage of income from certain
				concessions. As part of the lease agreement, the team also agrees to perform
				certain maintenance functions and to construct some improvements to the
				stadium. The monetary and other consideration given B are receipts from leasing
				real property and are not governmental gross receipts.
D. The receipts of any agency, institution,
				instrumentality or political subdivision of the state of New Mexico from the
				sale of season passes or season tickets to recreational, entertainment or
				athletic events in facilities open to the general public are receipts from
				admissions and not from leasing. Such receipts are governmental gross
				receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.17 - RECEIPTS FROM SERVICES - GENERAL

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts of any agency, institution,
				instrumentality or political subdivision of the state of New Mexico from
				performing services other than services which are entirely or predominantly
				refuse collection, refuse disposal, sewage or recreational, entertainment or
				athletic services are not governmental gross receipts.
B. Example: Receipts from the sale of
				advertising space in a publication of a state agency are not receipts from
				performing a refuse collection, refuse disposal, sewage or recreational,
				entertainment or athletic service and are not governmental gross
				receipts.