reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 226 - DEDUCTION - GROSS RECEIPTS TAX - CERTAIN REAL ESTATE TRANSACTIONS › Section 3.2.226.8 - CALCULATING THE DEDUCTIBLE PORTION OF A REAL ESTATE COMMISSION

Current through Register Vol. 35, No. 13, July 16, 2024
A. The portion of a
				real estate commission which is deductible is calculated using the following
				formula: Deductible commission equals total real estate commission times a
				fraction, the numerator of which is the taxable receipts from the sale of the
				property and the denominator of which is the total receipts from the sale of
				the property, or
Total commission x taxable receipts from sale / total
				  receipts from sale = deductible commission
B. "Taxable receipts from the sale" means
				that portion of the receipts from the sale of real property which is
				attributable to improvements constructed on the real property by the seller in
				the ordinary course of the seller's construction business.
C. Example: A real estate broker receives a
				$6,000 commission on a $100,000 sale of property by a construction contractor.
				Of the $100,000, $70,000 is the value of improvements constructed by the
				seller, for which the seller is subject to gross receipts tax. $30,000 is the
				value of the underlying land, which the seller (contractor) can deduct from
				gross receipts pursuant to Section
				7-9-53
				NMSA 1978. The real estate broker must report $6,000 as gross receipts. The
				real estate broker may calculate the deductible portion using the formula given
				in Subsection A of Section 3.2.226.8 NMAC:
$6,000 x $ 70,000 / $100,000 = $4,200
Thus, the real estate broker deducts $4,200 and pays tax on
				  the remaining $1,800.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 226 - DEDUCTION - GROSS RECEIPTS TAX - CERTAIN REAL ESTATE TRANSACTIONS › Section 3.2.226.9 - REAL ESTATE COMMISSION ON SALES NOT SUBJECT TO GROSS RECEIPTS TAX ARE FULLY TAXABLE

Current through Register Vol. 35, No. 13, July 16, 2024
A. No
				portion of a real estate commission is deductible if the total receipts from
				the sale of the real property are either deductible or exempt from gross
				receipts tax.
B. Example 1: A real
				estate broker receives a $6,000 commission on the sale of a home by the owner.
				The receipts of the homeowner from the sale are exempt as receipts from an
				isolated or occasional sale pursuant to Section
				7-9-28
				NMSA 1978. The real estate broker must pay tax on the entire $6,000
				commission.
C. Example 2: A real
				estate broker receives a $6,000 commission on the sale of a piece of raw land
				by a developer. Receipts from the sale of the land are deductible from gross
				receipts as receipts from the sale of real property pursuant to Section
				7-9-53
				NMSA 1978. The real estate broker must pay tax on the entire $6,000
				commission.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.1 - 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 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.3 - 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 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.5 - 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 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.6 - 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 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.8 - TRADING STAMPS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Trading stamps are not allowances within the meaning of Section
				7-9-67
				NMSA 1978. Trading stamps represent promotional services and may not be
				deducted from gross receipts or governmental gross receipts pursuant to Section
				7-9-67
				NMSA 1978.
B. Example: B is in the
				business of selling groceries. When one of B's customers purchases groceries, B
				will give the customer trading stamps. B wishes to deduct the cost of the
				trading stamps, saying that they are an allowance. Trading stamps are not
				allowances, but represent promotional service. No deduction is
				allowed.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.9 - REFUNDABLE DEPOSITS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Receipts from selling soft drinks include amounts received in the form of
				refundable deposits on bottles, cartons and cases.
B. The amount of deposits refunded to
				purchasers of soft drinks may be deducted from gross receipts or governmental
				gross receipts under Section
				7-9-67
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.10 - GENERAL EXAMPLES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The deduction for refunds and allowances made to buyers is applicable to
				taxpayers reporting gross receipts or governmental gross receipts on either a
				cash or an accrual basis, but the deduction for uncollectible accounts is
				available only to taxpayers who report gross receipts or governmental gross
				receipts on an accrual basis. The transaction or transactions which gave rise
				to either the refund or allowance or to the amount written off the books as an
				uncollectible account must have originally been subject to the gross receipts
				tax or governmental gross receipts tax.
B. Example 1: C operates an appliance store.
				C sells D an air conditioner for $200. D returns the air conditioner and C
				credits D's account with $150. C may deduct $150 from gross receipts. However,
				C must include the remaining $50 in gross receipts.
C. Example 2: A buys goods for $100. A sells
				them for $25. A wishes to deduct the loss from gross receipts. The loss may not
				be deducted. A must pay tax on the $25 or the fair market value of the item
				sold, whichever is greater.
D.
				Example 3: X is an accrual basis taxpayer. Y buys a suit from X but does not
				pay for it. X reports the receipts from the sale on X's return. X then
				discovers that X cannot collect the sales price of the suit. X may take the
				deduction upon proper proof of the bad debt. This rule, however, would not
				apply if X had never reported the receipts from the sale.
E. Example 4: U is a university bookstore
				which reports governmental gross receipts on an accrual basis. U sells books
				and other materials to a student on account, reporting governmental gross
				receipts in the month of sale. The student subsequently leaves the university
				without fully settling the account. Because the receipts from the sale had
				already been reported, U may take the deduction upon proper proof of the bad
				debt.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.11 - SALE OF REPOSSESSED PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A person reporting gross receipts or governmental gross
				  receipts on an accrual basis is entitled to deduct amounts written off the
				  books as an uncollectible debt for the amount credited to the buyer from whom
				  the property was repossessed. Receipts from a subsequent sale of the same
				  property are subject to the gross receipts tax or governmental gross
				  receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 227 - DEDUCTION - GROSS RECEIPTS TAX - REFUNDS - UNCOLLECTIBLE DEBTS › Section 3.2.227.12 - RETURNED CHECKS AND CREDIT CARD REVERSALS

Current through Register Vol. 35, No. 13, July 16, 2024
A. When a check is received, deposited,
				dishonored and returned, and not subsequently honored within the same reporting
				period, the taxpayer has no gross receipts with respect to the check. If the
				check is received within one reporting period, gross receipts are reported with
				respect to that check for that period and the check is dishonored, returned and
				not subsequently honored in a subsequent reporting period, the taxpayer may
				claim a deduction under Section
				7-9-67
				NMSA 1978 for the amount of the returned check for the period in which the
				check was dishonored.
B. When a
				credit card charge is reversed within the same reporting period, the taxpayer
				has no gross receipts with respect to the charge. If the credit card charge is
				made within one reporting period, gross receipts are reported with respect to
				that charge for the period and the charge is reversed in a subsequent reporting
				period, the taxpayer may claim a deduction under Section
				7-9-67
				NMSA 1978 for the amount of the reversed credit card charge for the period in
				which the reversal occurred.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 228 - DEDUCTION - GROSS RECEIPTS TAX - WARRANTY OBLIGATIONS › Section 3.2.228.1 - 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 228 - DEDUCTION - GROSS RECEIPTS TAX - WARRANTY OBLIGATIONS › Section 3.2.228.3 - 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 228 - DEDUCTION - GROSS RECEIPTS TAX - WARRANTY OBLIGATIONS › Section 3.2.228.5 - 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 228 - DEDUCTION - GROSS RECEIPTS TAX - WARRANTY OBLIGATIONS › Section 3.2.228.6 - 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 228 - DEDUCTION - GROSS RECEIPTS TAX - WARRANTY OBLIGATIONS › Section 3.2.228.8 - WARRANTY SUBCONTRACTOR

Current through Register Vol. 35, No. 13, July 16, 2024
If a dealer subcontracts with another person (subcontractor)
				  to fulfill the dealer's warranty obligation of the manufacturer of the
				  property, the receipts of the subcontractor may not be deducted pursuant to
				  Section
				  7-9-68
				  NMSA 1978. The subcontractor is not the dealer of record.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 228 - DEDUCTION - GROSS RECEIPTS TAX - WARRANTY OBLIGATIONS › Section 3.2.228.9 - WARRANTY OBLIGATIONS - GENERAL EXAMPLES

Current through Register Vol. 35, No. 13, July 16, 2024
A. A person authorized by the manufacturer to
				repair tangible personal property under the warranty of the manufacturer is a
				"dealer" for the purposes of Section
				7-9-68
				NMSA 1978. The person therefore may deduct receipts received directly from the
				manufacturer for parts and labor necessary to fulfill the manufacturer's
				warranty obligation. Receipts of the dealer which are received from any person
				other than the manufacturer may not be deducted under the provisions of Section
				7-9-68
				NMSA 1978.
B. Example 1: X, a
				washing machine company, offers a five-year warranty against defective parts
				(only) in all washing machines it manufactures and sells. C, who bought a
				washing machine manufactured by X, engages D, a dealer for X, to replace a
				defective part within the warranty period. D undertakes the repair and bills X
				for the parts used and C for the labor involved. X pays D for the parts and C
				pays D for the labor. D may deduct the receipts from X under Section
				7-9-68
				NMSA 1978 but D may not deduct under Section
				7-9-68
				NMSA 1978 the receipts derived from C for the labor charges not covered under
				the manufacturer's warranty.
C.
				Example 2: Y, a manufacturer of televisions, authorizes R, a television repair
				service, to repair televisions manufactured by Y under Y's warranty. R receives
				payment from Y to cover both parts and labor necessary to repair televisions
				manufactured by Y which are covered by Y's warranty. R may deduct the receipts
				from Y for fulfilling Y's warranty obligation.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 228 - DEDUCTION - GROSS RECEIPTS TAX - WARRANTY OBLIGATIONS › Section 3.2.228.10 - SERVICE CONTRACT AND MANUFACTURER'S WARRANTY DISTINGUISHED

Current through Register Vol. 35, No. 13, July 16, 2024
A manufacturer's warranty may be distinguished from an
				  automotive service contract, as that term is defined in Subsection C of Section
				  3.2.1.16
				  NMAC, on which the manufacturer is the promisor by the characterization used by
				  the manufacturer so long as no separate charge is made to the ultimate customer
				  for a manufacturer's undertaking characterized as a warranty.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 228 - DEDUCTION - GROSS RECEIPTS TAX - WARRANTY OBLIGATIONS › Section 3.2.228.11 - RECEIPTS FROM CO-PAYMENTS/DEDUCTIBLES UNDER WARRANTIES

Current through Register Vol. 35, No. 13, July 16, 2024
The dealer's receipts from the "co-payment" or "deductible"
				  amount paid to the dealer by the purchaser as required by some manufacturers'
				  warranties are gross receipts and not deductible from gross receipts under
				  Section
				  7-9-68
				  NMSA 1978 since the receipts from the purchaser are not receipts from
				  furnishing goods or services to fulfill the manufacturer's obligation. The
				  manufacturer's obligation under such a warranty is limited to the charge for
				  the goods and services minus the required co-payment or
				  deductible.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 229 - DEDUCTION - GROSS RECEIPTS TAX - ADMINISTRATIVE AND ACCOUNTING SERVICES › Section 3.2.229.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1150 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 229 - DEDUCTION - GROSS RECEIPTS TAX - ADMINISTRATIVE AND ACCOUNTING SERVICES › Section 3.2.229.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 229 - DEDUCTION - GROSS RECEIPTS TAX - ADMINISTRATIVE AND ACCOUNTING SERVICES › Section 3.2.229.3 - 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 229 - DEDUCTION - GROSS RECEIPTS TAX - ADMINISTRATIVE AND ACCOUNTING SERVICES › Section 3.2.229.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
3/15/96, 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 229 - DEDUCTION - GROSS RECEIPTS TAX - ADMINISTRATIVE AND ACCOUNTING SERVICES › Section 3.2.229.6 - 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 229 - DEDUCTION - GROSS RECEIPTS TAX - ADMINISTRATIVE AND ACCOUNTING SERVICES › Section 3.2.229.8 - GENERAL EXAMPLES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The deduction provided by this section contains several restrictions, among
				them are these:
(1) receipts must be from
				activities performed on a nonprofit or cost basis;
(2) excluded are receipts from sharing
				equipment or facilities other than office equipment or offices; and
(3) excluded are receipts from transactions
				with entities other than affiliated corporations as defined in this
				section.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 230 - DEDUCTION - GROSS RECEIPTS TAX - RENTAL OR LEASE OF VEHICLES USED IN INTERSTATE COMMERCE › Section 3.2.230.1 - 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 230 - DEDUCTION - GROSS RECEIPTS TAX - RENTAL OR LEASE OF VEHICLES USED IN INTERSTATE COMMERCE › Section 3.2.230.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 230 - DEDUCTION - GROSS RECEIPTS TAX - RENTAL OR LEASE OF VEHICLES USED IN INTERSTATE COMMERCE › Section 3.2.230.3 - 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 230 - DEDUCTION - GROSS RECEIPTS TAX - RENTAL OR LEASE OF VEHICLES USED IN INTERSTATE COMMERCE › Section 3.2.230.5 - 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 230 - DEDUCTION - GROSS RECEIPTS TAX - RENTAL OR LEASE OF VEHICLES USED IN INTERSTATE COMMERCE › Section 3.2.230.6 - 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 230 - DEDUCTION - GROSS RECEIPTS TAX - RENTAL OR LEASE OF VEHICLES USED IN INTERSTATE COMMERCE › Section 3.2.230.8 - WHEN FEDERAL AUTHORITY REQUIRED

Current through Register Vol. 35, No. 13, July 16, 2024
A. If a federal agency must grant authority
				for a person to engage lawfully in interstate transportation of persons or
				property, any person claiming a deduction under Section
				7-9-70
				NMSA 1978 must have rented or leased the vehicle to a person who holds federal
				authority for the transportation of passengers or property for hire in
				interstate commerce and who uses the vehicle for such purposes. The deduction
				under Section
				7-9-70
				NMSA 1978 is available to the lessor, not the lessee.
B. [Repealed.]
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 231 - DEDUCTION - GROSS RECEIPTS TAX - TRADE-IN ALLOWANCE › Section 3.2.231.1 - 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 231 - DEDUCTION - GROSS RECEIPTS TAX - TRADE-IN ALLOWANCE › Section 3.2.231.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 231 - DEDUCTION - GROSS RECEIPTS TAX - TRADE-IN ALLOWANCE › Section 3.2.231.3 - 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 231 - DEDUCTION - GROSS RECEIPTS TAX - TRADE-IN ALLOWANCE › Section 3.2.231.5 - 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 231 - DEDUCTION - GROSS RECEIPTS TAX - TRADE-IN ALLOWANCE › Section 3.2.231.6 - 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 231 - DEDUCTION - GROSS RECEIPTS TAX - TRADE-IN ALLOWANCE › Section 3.2.231.8 - TRADE-IN MUST BE OF LIKE PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A. A trade-in of tangible personal property,
				as used in Section
				7-9-71
				NMSA 1978, must be of the same type as the tangible personal property being
				sold.
B. Example 1: X, an appliance
				company, sells a refrigerator to Y and takes a radio as a trade-in. X cannot
				deduct that portion of its gross receipts on this transaction that is
				represented by the trade-in because a radio is not the same type of tangible
				personal property as a refrigerator.
C. Example 2: S, a construction equipment
				dealer, sells Y, a construction company, a crusher and takes a tractor as a
				trade-in. S cannot deduct that portion of its gross receipts on this
				transaction that is represented by the trade-in because a tractor is not the
				same type of tangible personal property as a crusher.
D. Example 3: A manufactured home is not the
				same type of tangible personal property as a "travel trailer" as defined in
				Section
				66-1-4.17
				NMSA 1978, for purposes of the trade-in allowance provided under Section
				7-9-71
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 231 - DEDUCTION - GROSS RECEIPTS TAX - TRADE-IN ALLOWANCE › Section 3.2.231.9 - MUSICAL INSTRUMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
That portion of the receipts of a music dealer which
				  represents a trade-in of a musical instrument may be deducted from gross
				  receipts only if the trade-in was accepted on the sale of another musical
				  instrument of the same type as the instrument accepted for trade-in. Similarly,
				  that portion of receipts of a music dealer which represents a trade-in of
				  equipment for amplifying musical sound used in conjunction with musical
				  instruments may be deducted from gross receipts only if the trade-in was
				  accepted on the sale of other equipment for amplifying musical sound used in
				  conjunction with musical instruments.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 232 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PROSTHETIC DEVICES › Section 3.2.232.1 - 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 232 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PROSTHETIC DEVICES › Section 3.2.232.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 232 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PROSTHETIC DEVICES › Section 3.2.232.3 - 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 232 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PROSTHETIC DEVICES › Section 3.2.232.5 - 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 232 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PROSTHETIC DEVICES › Section 3.2.232.6 - 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 232 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PROSTHETIC DEVICES › Section 3.2.232.8 - EYE WEAR

Current through Register Vol. 35, No. 13, July 16, 2024
The receipts from selling contact lenses, eye glasses, eye
				  glass frames and lens glass to ophthalmologists and optometrists may be
				  deducted from gross receipts if the buyer delivers a nontaxable transaction
				  certificate to the seller. Contact lenses, eye glasses, eye glass frames and
				  lens glasses are "prosthetic devices" within the meaning of Section
				  7-9-73
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 232 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PROSTHETIC DEVICES › Section 3.2.232.9 - DENTAL SUPPLIES

Current through Register Vol. 35, No. 13, July 16, 2024
The receipts from selling items of tangible personal property
				  used in making dentures, as well as receipts from selling supplies, including
				  gold, silver, cement used in fillings, amalgam, anesthetics, orthodontia
				  platinum wire, facings, backings and similar items to dentists for use in their
				  practices may not be deducted from gross receipts pursuant to Section
				  7-9-73
				  NMSA 1978. Such items sold are not "prosthetic devices" within the meaning of
				  Section
				  7-9-73
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 234 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PRESCRIPTION DRUGS › Section 3.2.234.1 - 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 234 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PRESCRIPTION DRUGS › Section 3.2.234.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 234 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PRESCRIPTION DRUGS › Section 3.2.234.3 - 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 234 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PRESCRIPTION DRUGS › Section 3.2.234.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
10/29/99, 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 234 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PRESCRIPTION DRUGS › Section 3.2.234.6 - 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 234 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PRESCRIPTION DRUGS › Section 3.2.234.8 - PACKAGING AND STORAGE CONTAINERS

Current through Register Vol. 35, No. 13, July 16, 2024
A. "INJECTIBLES": Injectibles are a
				combination of tangible personal property sold as a unit for a single price in
				which a prescription drug is pre-loaded by the manufacturer into a device, such
				as a syringe, to administer the prescription drug. Receipts from selling the
				device, such as a syringe, by itself are not deductible under Section
				7-9-73.2
				NMSA 1978. When sold as part of an injectible, however, the device will be
				considered simply an elaborate form of packaging incidental to the sale of the
				prescription drug. Receipts from selling injectibles may be deducted from gross
				receipts under Section
				7-9-73.2
				NMSA 1978.
B. The receipts of an
				oxygen service provider from the lease of oxygen canisters, cylinders or
				similar storage containers to recipients of oxygen services are deductible
				pursuant to Section
				7-9-73.2
				NMSA 1978 if the oxygen service provider sells the entire package, including
				the lease of the containers, as part of the oxygen service they
				provide.
C. Receipts from the sale
				or lease of machines or equipment that produce oxygen or filter the air are not
				receipts from the sale of oxygen or from providing oxygen services and
				therefore not deductible under Section
				7-9-73.2
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 234 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PRESCRIPTION DRUGS › Section 3.2.234.9 - VACCINES

Current through Register Vol. 35, No. 13, July 16, 2024
Vaccines required to be administered by a person licensed by
				  the state to do so are prescription drugs.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 234 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF PRESCRIPTION DRUGS › Section 3.2.234.10 - ITEMS THAT ARE NOT PRESCRIPTION DRUGS

Current through Register Vol. 35, No. 13, July 16, 2024
Tangible personal property that may be sold or dispensed for
				  human consumption or administered to a human without a prescription of a
				  person, such as a medical doctor, licensed to prescribe the property's use or
				  to administer it are not "prescription drugs". Items that do not require a
				  prescription, such as medical equipment, vitamins and aspirin are not
				  "prescription drugs" even if prescribed by a licensed medical doctor. Tangible
				  personal property sold or dispensed for non-human consumption or administered
				  to a non-human are not "prescription drugs".
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.1 - 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 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.3 - 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 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.5 - 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 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.6 - 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 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A "manufacturing service" is the service of combining or
				  processing components or materials owned by another.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.8 - PLATING

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from
				the sale of the service of plating are deductible from gross receipts if the
				sale is made to a person engaged in the business of manufacturing and the buyer
				delivers a nontaxable transaction certificate (nttc).
B. The buyer delivering the nttc must have
				the service performed directly upon tangible personal property which the buyer
				is in the business of manufacturing or upon ingredients or component parts
				thereof, or the buyer will be liable for the compensating tax on the value of
				the plating service at the time it was rendered.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.9 - HAULING FOR MANUFACTURER

Current through Register Vol. 35, No. 13, July 16, 2024
Hauling components or materials for a person engaged in the
				  manufacturing business is not a manufacturing service within the meaning of
				  Section
				  7-9-75
				  NMSA 1978. The hauler is neither combining nor processing these items;
				  therefore, the manufacturer may not issue to the hauler a nontaxable
				  transaction certificate and the hauler may not deduct the receipts pursuant to
				  Section
				  7-9-75
				  NMSA 1978. The hauler's receipts are fully subject to the gross receipts
				  tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.10 - RECEIPTS FROM MANUFACTURER FOR "GET READY"

Current through Register Vol. 35, No. 13, July 16, 2024
Amounts paid to, or credited against the account of, an
				  automotive dealer by a manufacturer to compensate the dealer for inspection and
				  other "get ready" operations performed on new vehicles manufactured by that
				  manufacturer may be deducted from gross receipts if the dealer has in
				  possession a Type 13 (manufacturing services) nontaxable transaction
				  certificate (nttc) issued by the manufacturer of the vehicles since the dealer
				  is performing services directly on the property which the manufacturer is in
				  the business of manufacturing. A reduction in the dealer's invoice price for a
				  new vehicle to compensate the dealer for "get ready" operations on that vehicle
				  involves a receipt by the dealer, but a deduction of that amount may be claimed
				  by the dealer who has a Type 13 nttc issued by the
				  manufacturer.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.11 - RECEIPTS FROM NON-MANUFACTURERS FOR "GET READY"

Current through Register Vol. 35, No. 13, July 16, 2024
Amounts paid to a New Mexico automotive dealer by another
				  dealer for inspection and other "get ready" operations performed on new
				  vehicles being sold by the other dealer may not be deducted under a Type 13
				  nontaxable transaction certificate issued by the other dealer since the New
				  Mexico dealer is not performing the services for the
				  manufacturer.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 235 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF CERTAIN SERVICES PERFORMED DIRECTLY ON PRODUCT MANUFACTURED › Section 3.2.235.12 - INSTALLING COMPUTER PROGRAMMING AS A COMPONENT PART

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from performing the service of
				installing computer programming on a computer chip or other device for a
				manufacturer may be deducted under Section
				7-9-75
				NMSA 1978 when the chips are supplied by the manufacturer and the programmed
				chip or device is designed to control the operation of machinery or
				equipment.
B. Example 1: M, a
				manufacturer of widgets, contracts with X to install control logic (developed
				by M) on computer chips which are to be incorporated into M's widgets. The
				chips are designed to control certain operations of the widget. X's receipts
				from performing this service are deductible under Section
				7-9-75
				NMSA 1978 regardless of whether or not the programming is designed to allow the
				ultimate purchaser of the widgets to alter some or all of the programming
				parameters.
C. Example 2: M, a
				manufacturer of computer chips, accepts an order from B to make and sell
				specialty chips. The order requires that certain software be included on the
				chips. M contracts with X to install the programming on the chips. M ships the
				chips to X, who in turn ships the chips to B after installing the programming.
				X may deduct its receipts from installing the programming on the chips under
				Section
				7-9-75
				NMSA 1978.
D. Example 3: S,
				retailer of computers and packaged programming, hires X to install packaged
				programming on the computers S sells. X may not deduct its receipts from
				installing the programming for S under Section
				7-9-75
				NMSA 1978 because S is not a manufacturer. Other deductions, such as that under
				Section
				7-9-48
				NMSA 1978, however, may be available.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 237 - DEDUCTION - COMPENSATING TAX › Section 3.2.237.1 - 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 237 - DEDUCTION - COMPENSATING TAX › Section 3.2.237.5 - 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 237 - DEDUCTION - COMPENSATING TAX › Section 3.2.237.6 - 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 237 - DEDUCTION - COMPENSATING TAX › Section 3.2.237.8 - GENERAL EXAMPLE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The following example illustrates the application of Section
				7-9-77
				NMSA 1978.
B. Example: Y charters
				an airplane from X, an out-of-state airplane dealer. The charter is for one
				month. After one week Y decides to buy the airplane. X allows Y a "trade-in"
				for the remaining three weeks of Y's charter. Y cannot deduct the value of this
				"trade-in" from the value of the airplane in computing the compensating tax
				due. The "trade-in" was not tangible personal property.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 237 - DEDUCTION - COMPENSATING TAX › Section 3.2.237.9 - TRANSPORTATION OR FREIGHT CHARGES

Current through Register Vol. 35, No. 13, July 16, 2024
As transportation costs paid by the seller to the carrier are
				  an element of the sales price of the property, when equipment not required to
				  be registered under the Motor Vehicle Code is purchased outside New Mexico and
				  is brought into New Mexico for use, the value of the equipment as well as the
				  freight costs are subject to the 50% deduction in computing the compensating
				  tax due.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 238 - DEDUCTION - COMPENSATING TAX - USE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.238.1 - 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 238 - DEDUCTION - COMPENSATING TAX - USE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.238.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in the business of
				  leasing tangible personal property in New Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 238 - DEDUCTION - COMPENSATING TAX - USE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.238.3 - 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 238 - DEDUCTION - COMPENSATING TAX - USE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.238.5 - 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 238 - DEDUCTION - COMPENSATING TAX - USE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.238.6 - 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 238 - DEDUCTION - COMPENSATING TAX - USE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.238.8 - AUTOMOBILE LEASING

Current through Register Vol. 35, No. 13, July 16, 2024
The value of tires, engine repair parts and similar items
				  used by a lessor in the maintenance of vehicles held for lease or already
				  leased may be deducted in computing compensating tax if the following three
				  conditions are met:
A. the parts are
				used by the lessor on vehicles held for lease or already leased and the
				receipts from leasing or selling vehicles are a substantial portion of the
				receipts;
B. the maintenance of the
				vehicles is performed at no additional cost to the lessee under the lease
				agreement; and
C. the lessor does
				not use the vehicles or parts in any manner other than holding them for lease
				or sale or leasing or selling them either by themselves or in combination with
				other tangible personal property in the ordinary course of business.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 238 - DEDUCTION - COMPENSATING TAX - USE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.238.9 - GENERAL EXAMPLES

Current through Register Vol. 35, No. 13, July 16, 2024
The following examples illustrate the application of Section
				  7-9-78
				  NMSA 1978:
A. Example 1: E, a New
				Mexico corporation, is solely engaged in the business of leasing electric
				typewriters to business establishments in New Mexico. E purchases a typewriter
				in Texas to hold for lease in the ordinary course of its business. E does not
				use the typewriter in any other manner. E may deduct the value of the
				typewriter in computing its compensating tax due.
B. Example 2: E, a Colorado company, buys
				stoves from Z, a Colorado company. E initially uses the stoves in its business
				in Colorado but later converts their use solely to leasing. E then brings the
				stoves into New Mexico for purposes of leasing. E is not liable for the
				compensating tax if the stoves are leased to restaurants. If E brings the
				stoves into New Mexico to be furnished as part of a leased dwelling house of
				which E is the lessor, E is liable for the compensating tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 239 - DEDUCTION - GROSS RECEIPTS TAX - FUNDRAISING › Section 3.2.239.1 - 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 239 - DEDUCTION - GROSS RECEIPTS TAX - FUNDRAISING › Section 3.2.239.3 - 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 239 - DEDUCTION - GROSS RECEIPTS TAX - FUNDRAISING › Section 3.2.239.5 - 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.