reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 11 - PROPERTY FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.11.9 - PROPERTY FACTOR - PROPERTY USED FOR THE PRODUCTION OF BUSINESS INCOME

Current through Register Vol. 35, No. 13, July 16, 2024
Property shall be included in the property factor if it is
				  actually used or is available for or capable of being used during the tax
				  period in the regular course of the trade or business of the taxpayer. Property
				  held as reserves or standby facilities or property held as a reserve source of
				  materials shall be included in the factor. For example, a plant temporarily
				  idle or raw material reserves not currently being processed are includable in
				  the factor. Property or equipment under construction during the tax period
				  (except inventoriable goods in process) shall be excluded from the factor until
				  such property is actually used in the regular course of the trade or business
				  of the taxpayer. If the property is partially used in the regular course of the
				  trade or business of the taxpayer while under construction, the value of the
				  property to the extent used shall be included in the property factor. Property
				  used in the regular course of the trade or business of the taxpayer shall
				  remain in the property factor until its permanent withdrawal is established by
				  an identifiable event such as its conversion to the production of nonbusiness
				  income, its sale or the lapse of an extended period of time (normally five
				  years) during which the property is held for sale.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 11 - PROPERTY FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.11.10 - PROPERTY FACTOR - CONSISTENCY IN REPORTING

Current through Register Vol. 35, No. 13, July 16, 2024
A. In filing returns with this state, if the
				taxpayer departs from or modifies the manner of valuing property, or of
				excluding or including property in the property factor, used in returns for
				prior years, the taxpayer shall disclose in the return for the current year the
				nature and extent of the modification.
B. If the returns or reports filed by the
				taxpayer with all states to which the taxpayer reports under the Uniform
				Division of Income for Tax Purposes Act or Article IV of the multistate tax
				compact are not uniform in the valuation of property and in the exclusion or
				inclusion of property in the property factor, the taxpayer shall disclose in
				its return to this state the nature and extent of the variance.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 11 - PROPERTY FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.11.11 - PROPERTY FACTOR - NUMERATOR

Current through Register Vol. 35, No. 13, July 16, 2024
The numerator of the property factor shall include the
				  average value of the real and tangible personal property owned or rented by the
				  taxpayer and used in this state during the tax period in the regular course of
				  the trade or business of the taxpayer. Property in transit between locations of
				  the taxpayer to which it belongs shall be considered to be at the destination
				  for purposes of the property factor. Property in transit between a buyer and
				  seller which is included by a taxpayer in the denominator of its property
				  factor in accordance with its regular accounting practices shall be included in
				  the numerator according to the state of destination. The value of mobile or
				  movable property such as construction equipment, trucks or leased electronic
				  equipment which are located within and without this state during the tax period
				  shall be determined for purposes of the numerator of the factor on the basis of
				  total time within the state during the tax period. An automobile assigned to a
				  traveling employee shall be included in the numerator of the factor of the
				  state to which the employee's compensation is assigned under the payroll factor
				  or in the numerator of the state in which the automobile is
				  licensed.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 12 - VALUATION OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.12.1 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 12 - VALUATION OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.12.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to every taxpayer having income which is
				  taxable for income tax purposes both within and without New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 12 - VALUATION OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.12.3 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 12 - VALUATION OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.12.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1/15/97, 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 12 - VALUATION OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.12.6 - 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 Uniform Division of Income for Tax
				  Purposes Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 12 - VALUATION OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.12.8 - PROPERTY FACTOR - VALUATION OF OWNED PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Property owned by the taxpayer shall be
				valued at its original cost. As a general rule "original cost" is deemed to be
				the basis of the property for federal income tax purposes (prior to any federal
				adjustments) at the time of acquisition by the taxpayer and adjusted by
				subsequent capital additions or improvements thereto and partial disposition
				thereof, by reason of sale, exchange, abandonment, etc.
B. If the original cost of property is
				unascertainable, the property is included in the factor at its fair market
				value as of the date of acquisition by the taxpayer.
C. Inventory of stock of goods shall be
				included in the factor in accordance with the valuation method used for federal
				income tax purposes.
D. Property
				acquired by gift or inheritance shall be included in the factor at its basis
				for determining depreciation for federal income tax purposes.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 12 - VALUATION OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.12.9 - PROPERTY FACTOR - VALUATION OF RENTED PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Property rented by the taxpayer is valued
				at eight times its net annual rental rate. The net annual rental rate for any
				item of rented property is the annual rental rate paid by the taxpayer for such
				property, less the aggregate annual subrental rates paid by subtenants of the
				taxpayer. Subrents are not deducted when the subrents constitute business
				income because the property which produces the subrents is used in the regular
				course of a trade or business of the taxpayer when it is producing such income.
				Accordingly there is no reduction in its value.
B. "Annual rental rate" is the amount paid as
				rental for property for a twelve- month period (i.e., the amount of the annual
				rent). Where property is rented for less than a twelve-month period, the rent
				paid for the actual period of rental shall constitute the "annual rental rate"
				for the tax period. However, where a taxpayer has rented property for a term of
				twelve or more months and the current tax period covers a period of less than
				twelve months (due, for example, to a reorganization or change of accounting
				period), the rent paid for the short tax period shall be annualized. If the
				rental term is for less than twelve months, the rent shall not be annualized
				beyond its term. Rent shall not be annualized because of the uncertain duration
				when the rental term is on a month-to-month basis.
C. "Annual rent" is the actual sum of money
				or other consideration payable, directly or indirectly, by the taxpayer or for
				its benefit for the use of the property and includes:
(1) any amount payable for the use of real or
				tangible personal property, or any part thereof, whether designated as a fixed
				sum of money or a percentage of sales, profits or otherwise; and
(2) any amount payable as additional rent or
				in lieu of rents, such as interest, taxes, insurance, repairs or any other
				items which are required to be paid by the terms of the lease or other
				arrangement, not including amounts paid as service charges, such as utilities,
				janitor services, etc.; if a payment includes rent and other charges
				unsegregated, the amount of rent shall be determined by consideration of the
				relative values of the rent and the other items.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 13 - DETERMINATION OF AVERAGE VALUE OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.13.1 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 13 - DETERMINATION OF AVERAGE VALUE OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.13.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to every taxpayer having income which is
				  taxable for income tax purposes both within and without New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 13 - DETERMINATION OF AVERAGE VALUE OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.13.3 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 13 - DETERMINATION OF AVERAGE VALUE OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.13.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1/15/97, 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 13 - DETERMINATION OF AVERAGE VALUE OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.13.6 - 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 Uniform Division of Income for Tax
				  Purposes Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 13 - DETERMINATION OF AVERAGE VALUE OF PROPERTY FOR INCLUSION IN PROPERTY FACTOR › Section 3.5.13.8 - PROPERTY FACTOR - AVERAGING PROPERTY VALUES

Current through Register Vol. 35, No. 13, July 16, 2024
A. As a general rule, the average value of
				property owned by the taxpayer shall be determined by averaging the values at
				the beginning and ending of the tax period. However, the department may require
				or allow averaging by monthly values if such method of averaging is required to
				properly reflect the average value of the taxpayer's property for the tax
				period.
B. Averaging by monthly
				values will generally be applied if substantial fluctuations in the value of
				the property exist during the tax period or where property is acquired after
				the beginning of the tax period or disposed of before the end of the tax
				period.
C. Averaging with respect
				to rented property is achieved automatically by the method of determining the
				net annual rental rate of such property as set forth in Section 3.5.12.9
				NMAC.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 14 - PAYROLL FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.14.1 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 14 - PAYROLL FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.14.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to every taxpayer having income which is
				  taxable for income tax purposes both within and without New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 14 - PAYROLL FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.14.3 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 14 - PAYROLL FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.14.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1/15/97, 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 14 - PAYROLL FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.14.6 - 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 Uniform Division of Income for Tax
				  Purposes Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 14 - PAYROLL FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.14.9 - PAYROLL FACTOR - DENOMINATOR

Current through Register Vol. 35, No. 13, July 16, 2024
The denominator of the payroll factor is the total
				  compensation paid everywhere during the tax period. Accordingly, compensation
				  paid to employees whose services are performed entirely in a state where the
				  taxpayer is immune from taxation, for example, by Public Law 86-272, are
				  included in the denominator of the payroll factor.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 14 - PAYROLL FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.14.10 - PAYROLL FACTOR - NUMERATOR

Current through Register Vol. 35, No. 13, July 16, 2024
The numerator of the payroll factor is the total amount paid
				  in this state during the tax period by the taxpayer for compensation. The tests
				  in Section
				  7-4-15
				  NMSA 1978 to be applied in determining whether compensation is paid in this
				  state are derived from the Model Unemployment Compensation Act. Accordingly, if
				  compensation paid to employees is included in the payroll factor by use of the
				  cash method of accounting or if the taxpayer is required to report such
				  compensation under such method for unemployment compensation purposes, it shall
				  be presumed that the total wages reported by the taxpayer to this state for
				  unemployment compensation purposes constitutes compensation paid in this state
				  except for compensation excluded under Parts 3.5.14 and 3.5.15 NMAC. The
				  presumption may be overcome by satisfactory evidence that an employee's
				  compensation is not properly reportable to this state for unemployment
				  compensation purposes.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 15 - DETERMINATION OF COMPENSATION FOR INCLUSION IN PAYROLL FACTOR › Section 3.5.15.1 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 15 - DETERMINATION OF COMPENSATION FOR INCLUSION IN PAYROLL FACTOR › Section 3.5.15.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to every taxpayer having income which is
				  taxable for income tax purposes both within and without New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 15 - DETERMINATION OF COMPENSATION FOR INCLUSION IN PAYROLL FACTOR › Section 3.5.15.3 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 15 - DETERMINATION OF COMPENSATION FOR INCLUSION IN PAYROLL FACTOR › Section 3.5.15.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1/15/97, 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 15 - DETERMINATION OF COMPENSATION FOR INCLUSION IN PAYROLL FACTOR › Section 3.5.15.6 - 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 Uniform Division of Income for Tax
				  Purposes Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 15 - DETERMINATION OF COMPENSATION FOR INCLUSION IN PAYROLL FACTOR › Section 3.5.15.8 - PAYROLL FACTOR - COMPENSATION PAID IN THIS STATE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Compensation is paid in this state if any
				one of the following tests, applied consecutively, are met.
(1) The employee's service is performed
				entirely within the state.
(2) The
				employee's service is performed both within and without the state, but the
				service performed without the state is incidental to the employee's service
				within the state. The word "incidental" means any service which is temporary or
				transitory in nature, or which is rendered in connection with an isolated
				transaction.
(3) If the employee's
				services are performed both within and without this state, the employee's
				compensation will be attributed to this state:
(a) if the employee's base of operations is
				in this state; or
(b) if there is
				no base of operations in any state in which some part of the service is
				performed, but the place from which the service is directed or controlled is in
				this state; or
(c) if the base of
				operations or the place from which the service is directed or controlled is not
				in any state in which some part of the service is performed but the employee's
				residence is in this state.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 16 - SALES FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.16.1 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 16 - SALES FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.16.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to every taxpayer having income which is
				  taxable for income tax purposes both within and without New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 16 - SALES FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.16.3 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 16 - SALES FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.16.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1/15/97, 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 16 - SALES FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.16.6 - 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 Uniform Division of Income for Tax
				  Purposes Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 16 - SALES FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.16.8 - SALES FACTOR - IN GENERAL

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Section
				7-4-2 NMSA 1978
				defines the term "sales" to mean all gross receipts of the taxpayer not
				allocated under Sections
				7-4-5
				through
				7-4-9
				NMSA 1978. Thus for the purposes of the sales factor of the apportionment
				formula for each trade or business of the taxpayer, the term "sales" means all
				gross receipts derived by the taxpayer from transactions and activity in the
				regular course of such trade or business. The following are rules for
				determining "sales" in various situations.
(1) In the case of a taxpayer engaged in
				manufacturing and selling or purchasing and reselling goods or products,
				"sales" includes all gross receipts from the sales of such goods or products
				(or other property of a kind which would properly be included in the inventory
				of the taxpayer if on hand at the close of the tax period) held by the taxpayer
				primarily for sale to customers in the ordinary course of its trade or
				business. Gross receipts for this purpose means gross sales, less returns and
				allowances and includes all interest income, service charges, carrying charges
				or time-price differential charges incidental to such sales. Federal and state
				excise taxes (including sales taxes and gross receipts taxes) shall be included
				as part of such receipts if such taxes are passed on to the buyer or included
				as part of the selling price of the product.
(2) In the case of cost plus fixed fee
				contracts, such as the operation of a government-owned plant for a fee, "sales"
				includes the entire reimbursed cost, plus the fee.
(3) In the case of a taxpayer engaged in
				providing services, such as the operation of an advertising agency, or the
				performance of equipment service contracts or research and development
				contracts, "sales" includes the gross receipts from the performance of such
				services including fees, commissions and similar items.
(4) In the case of a taxpayer engaged in
				renting real or tangible property, "sales" includes the gross receipts from the
				rental, lease or licensing the use of the property.
(5) In the case of a taxpayer engaged in the
				sale, assignment or licensing of intangible personal property, such as patents
				and copyrights, "sales" includes the gross receipts therefrom.
(6) If a taxpayer derives receipts from the
				sale of equipment used in its business, such receipts constitute "sales". For
				example, a truck express company owns a fleet of trucks and sells its trucks
				under a regular replacement program. The gross receipts from the sales of the
				trucks are included in the sales factor.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 16 - SALES FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.16.9 - SALES FACTOR - DENOMINATOR

Current through Register Vol. 35, No. 13, July 16, 2024
The denominator of the sales factor shall include the total
				  gross receipts derived by the taxpayer from transactions and activity in the
				  regular course of its trade or business, except receipts excluded under Section
				  3.5.19.11
				  NMAC.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 16 - SALES FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.16.10 - SALES FACTOR - NUMERATOR

Current through Register Vol. 35, No. 13, July 16, 2024
The numerator of the sales factor shall include gross
				  receipts attributable to this state and derived by the taxpayer from
				  transactions and activity in the regular course of its trade or business. All
				  interest income, service charges, carrying charges or time-price differential
				  charges incidental to such gross receipts shall be included regardless of the
				  place where the accounting records are maintained or the location of the
				  contract or other evidence of indebtedness.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 16 - SALES FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.16.11 - EFFECT OF COMBINED FILING ON THE SALES FACTOR

Current through Register Vol. 35, No. 13, July 16, 2024
For corporations that file on a combined or consolidated
				  basis, the sales factor for the filing group is calculated without the
				  inclusion of intercompany sales that would otherwise be deferred or eliminated
				  under federal consolidated filing rules when calculating net income for the
				  group
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 17 - DETERMINATION OF SALES IN THIS STATE OF TANGIBLE PERSONAL PROPERTY FOR INCLUSION IN SALES FACTOR › Section 3.5.17.1 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 17 - DETERMINATION OF SALES IN THIS STATE OF TANGIBLE PERSONAL PROPERTY FOR INCLUSION IN SALES FACTOR › Section 3.5.17.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to every taxpayer having income which is
				  taxable for income tax purposes both within and without New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 17 - DETERMINATION OF SALES IN THIS STATE OF TANGIBLE PERSONAL PROPERTY FOR INCLUSION IN SALES FACTOR › Section 3.5.17.3 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 17 - DETERMINATION OF SALES IN THIS STATE OF TANGIBLE PERSONAL PROPERTY FOR INCLUSION IN SALES FACTOR › Section 3.5.17.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1/15/97, 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 17 - DETERMINATION OF SALES IN THIS STATE OF TANGIBLE PERSONAL PROPERTY FOR INCLUSION IN SALES FACTOR › Section 3.5.17.6 - 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 Uniform Division of Income for Tax
				  Purposes Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 17 - DETERMINATION OF SALES IN THIS STATE OF TANGIBLE PERSONAL PROPERTY FOR INCLUSION IN SALES FACTOR › Section 3.5.17.8 - SALES FACTOR - SALES OF TANGIBLE PERSONAL PROPERTY IN THIS STATE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Gross receipts
				from sales of tangible personal property (except sales to the United States
				government) are in this state:
(1) If the
				property is delivered or shipped to a purchaser within this state regardless of
				the f.o.b. point or other conditions of sale; or
(2) If the property is shipped from an
				office, store, warehouse, factory or other place of storage in this state and
				the taxpayer is not taxable in the state of the purchaser.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 17 - DETERMINATION OF SALES IN THIS STATE OF TANGIBLE PERSONAL PROPERTY FOR INCLUSION IN SALES FACTOR › Section 3.5.17.9 - SALES FACTOR - SALES OF TANGIBLE PERSONAL PROPERTY TO UNITED STATES GOVERNMENT IN THIS STATE

Current through Register Vol. 35, No. 13, July 16, 2024
Gross receipts from sales of tangible personal property to
				  the United States government are in this state if the property is shipped from
				  an office, store, warehouse, factory or other place of storage in this state.
				  For purposes of Section 3.5.17.9 NMAC, only sales for which the United States
				  government makes direct payment to the seller pursuant to the terms of a
				  contract constitute sales to the United States government. Thus, as a general
				  rule, sales by a subcontractor to the prime contractor, the party to the
				  contract with the United States government, do not constitute sales to the
				  United States government.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 18 - DETERMINATION OF SALES IN THIS STATE OF OTHER THAN TANGIBLE › Section 3.5.18.1 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 18 - DETERMINATION OF SALES IN THIS STATE OF OTHER THAN TANGIBLE › Section 3.5.18.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to every taxpayer having income which is
				  taxable for income tax purposes both within and without New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 18 - DETERMINATION OF SALES IN THIS STATE OF OTHER THAN TANGIBLE › Section 3.5.18.3 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 18 - DETERMINATION OF SALES IN THIS STATE OF OTHER THAN TANGIBLE › Section 3.5.18.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
March 23, 2021, 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 18 - DETERMINATION OF SALES IN THIS STATE OF OTHER THAN TANGIBLE › Section 3.5.18.6 - 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 Uniform Division of Income for Tax
				  Purposes Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 18 - DETERMINATION OF SALES IN THIS STATE OF OTHER THAN TANGIBLE › Section 3.5.18.8 - SALES FACTOR - SALES OTHER THAN SALES OF TANGIBLE PERSONAL PROPERTY IN THIS STATE - APPLICABLE TO TAXABLE YEARS BEGINNING PRIOR TO JANUARY 1, 2020

Current through Register Vol. 35, No. 13, July 16, 2024
A. In general.
				Section
				7-4-18
				NMSA 1978 provides for the inclusion in the numerator of the sales factor of
				gross receipts from transactions other than sales of tangible personal property
				(including transactions with the United States government). Under Section
				7-4-18
				NMSA 1978 gross receipts are attributed to this state if the income producing
				activity which gave rise to the receipts is performed wholly within this state.
				Also, gross receipts are attributed to this state if, with respect to a
				particular item of income, the income producing activity is performed within
				and without this state but the greater proportion of the income producing
				activity is performed in this state, based on costs of performance.
B. Income producing activity: defined.
(1) The term "income producing activity"
				applies to each separate item of income and means the transactions and activity
				directly engaged in by the taxpayer in the regular course of its obtaining
				gains or profit. Such activity does not include transactions and activities
				performed on behalf of a taxpayer such as those conducted on its behalf by an
				independent contractor. Accordingly, income producing activity includes but is
				not limited to the following:
(a) the
				rendering of personal services by employees or the utilization of tangible or
				intangible property by the taxpayer in performing a service;
(b) the sale, rental, leasing, licensing or
				other use of real property;
(c) the
				rental, leasing, licensing or other use of tangible personal property;
				or
(d) the sale, licensing or other
				use of intangible personal property.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 18 - DETERMINATION OF SALES IN THIS STATE OF OTHER THAN TANGIBLE › Section 3.5.18.9 - SALES FACTOR - SALES OTHER THAN SALES OF TANGIBLE PERSONAL PROPERTY IN THIS STATE - APPLICABLE TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2020

Current through Register Vol. 35, No. 13, July 16, 2024
A. Sales factor:
				Sales other than sales of tangible personal property in this state: General
				rules:
(1) Definitions. For the purposes of
				this Section (3.5.18.9 NMAC) these terms have the following meanings:
(a)
"Billing address"
means the
				primary mailing address relating to a customer's account as of the time of the
				transaction as kept in good faith in the normal course of business and not for
				tax avoidance purposes.
(b)
"Business customer"
means a customer that is a business or
				organization operating in any form and generally includes customers other than
				individual customers.
(c)
"Customer"
means the person with which the taxpayer has a contract
				for the transaction, regardless of who pays for or may benefit from the
				transaction.
(d)
"IRC"
means the Internal Revenue Code as currently written and subsequently
				amended.
(e)
"Individual
				customer"
means a customer that is a natural person.
(f)
"Intangible property"
means
				property that is not physical or whose representation by physical means is
				merely incidental.
(g)
"Place
				of order"
means the physical location from which a customer places an
				order resulting in a contract with the taxpayer.
(h)
"Population"
means the most
				recent population data maintained by the U.S. census bureau for the year in
				question as of the close of the taxable period.
(i)
"Related party"
means any
				person who may exercise control of the taxpayer, or is generally controlled by
				the taxpayer, directly or indirectly, whether through ownership or
				agreement.
(j)
"Sale"
in the context of Section
				7-4-18
				NMSA 1978 means a transaction described in that section, including a lease or
				license and depending on the context also means the receipts from that
				transaction.
(k)
"Source"
means, in general, attributing a sale to a state using
				the rules under Section
				7-4-18
				NMSA, 1978 and this regulation.
(l)
"State or location where a contract of sale is principally managed by the
				customer"
means the primary location from which a customer's employee or
				agent interacts with the taxpayer and oversees the taxpayer's activities under
				the contract.
(m)
"Use"
means use for the intended purpose of the intangible
				property.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.1 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to every taxpayer having income which is
				  taxable for income tax purposes both within and without New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.3 - 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
7/15/96, 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 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.6 - 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 Uniform Division of Income for Tax
				  Purposes Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.8 - SPECIAL RULES - IN GENERAL

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Section
				7-4-19
				NMSA 1978 provides that if the allocation and apportionment provisions of
				Sections
				7-4-2 to
				7-4-18
				NMSA 1978 do not fairly represent the extent of the taxpayer's business
				activity in this state, the taxpayer may petition for or the department may
				require, in respect to all or any part of the taxpayer's business activity, if
				reasonable:
(1) separate
				accounting;
(2) the exclusion of
				any one or more of the factors;
(3)
				the inclusion of one or more additional factors which will fairly represent the
				taxpayer's business activity in this state; or
(4) the employment of any other method to
				effectuate an equitable allocation and apportionment of the taxpayer's
				income.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.9 - ADJUSTMENT OF FORMULA

Current through Register Vol. 35, No. 13, July 16, 2024
A. If
				a taxpayer requests any deviation from the statutory allocation and
				apportionment formula, the taxpayer must submit a written petition to the
				department with the return. The petition must be accompanied by returns for the
				taxable year computed on both:
(1) the basis
				of the standard statutory allocation and apportionment formula; and
(2) the basis of the method requested by the
				taxpayer.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.10 - SPECIAL RULES - PROPERTY FACTOR

Current through Register Vol. 35, No. 13, July 16, 2024
The following special rules are established in respect to the
				  property factor of the apportionment formula:
A. If the subrents taken into account in
				determining the net annual rental rate under Section 3.5.12.9 NMAC produce a
				negative or clearly inaccurate value for any item of property, another method
				which will properly reflect the value of rented property may be required by the
				department or requested by the taxpayer. In no case however, shall such value
				be less than an amount which bears the same ratio to the annual rental rate
				paid by the taxpayer for such property as the fair market value of that portion
				of the property used by the taxpayer bears to the total fair market value of
				the rented property.
B. If property
				owned by others is used by the taxpayer at no charge or rented by the taxpayer
				for a nominal rate, the net annual rental rate for such property shall be
				determined on the basis of a reasonable market rental rate for such
				property.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.11 - SPECIAL RULES - SALES FACTOR

Current through Register Vol. 35, No. 13, July 16, 2024
A. The following special rules are
				established in respect to the sales factor of the apportionment formula:
(1) Where substantial amounts of gross
				receipts arise from an incidental or occasional sale of a fixed asset used in
				the regular course of the taxpayer's trade or business, such gross receipts
				shall be excluded from the sales factor. For example, gross receipts from the
				sale of a factory or plant will be excluded.
(2) Insubstantial amounts of gross receipts
				arising from incidental or occasional transactions or activities may be
				excluded from the sales factor unless such exclusion would materially affect
				the amount of income apportioned to this state. For example, the taxpayer
				ordinarily may include or exclude from the sales factor gross receipts from
				such transactions as the sale of office furniture, business automobiles,
				etc.
(3) Where the income producing
				activity in respect to business income from intangible personal property can be
				readily identified, such income is included in the denominator of the sales
				factor and, if the income producing activity occurs in this state, in the
				numerator of the sales factor as well. For example, usually the income
				producing activity can be readily identified in respect to interest income
				received on deferred payments on sales of tangible property and income from the
				sale, licensing or other use of intangible personal property.
(4) Where the taxpayer realizes gains from
				the sale or other disposition of intangible property held as part of the
				taxpayer's short term investments of working capital, only the net gain from
				such sales reported as taxable income shall be included in the taxpayer's sales
				factor.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.14 - SPECIAL RULES - AIRLINES

Current through Register Vol. 35, No. 13, July 16, 2024
A. The special rules established in Section
				3.5.19.14 NMAC apply to airlines.
B.
In general.
Where an
				airline has income from sources both within and without this state, the amount
				of business income from sources within this state shall be determined pursuant
				to the provisions of the Uniform Division of Income for Tax Purposes Act,
				Sections
				7-4-1 through
				7-4-21 NMSA
				1978, except as modified by this section.
C.
Apportionment of business
				income.
(1) General definitions. The
				following definitions are applicable to the terms used in the apportionment
				factor descriptions.
(a) "Value" of owned
				real and tangible personal property shall mean its original cost.
(b) "Cost of aircraft by type" means the
				average original cost or value of aircraft by type which are ready for
				flight.
(c) "Original cost" means
				the initial federal tax basis of the property plus the value of capital
				improvements to such property, except that, for this purpose, it shall be
				assumed that safe harbor leases are not true leases and do not affect the
				original initial federal tax basis of the property.
(d) "Average value" of the property means the
				amount determined by averaging the values at the beginning and ending of the
				income year, but the taxation and revenue department may require the averaging
				of monthly values during the income year if such averaging is necessary to
				reflect properly the average value of the airline's property.
(e) The "value" of rented real and tangible
				personal property means the product of eight (8) times the net annual rental
				rate.
(f) "Net annual rental rate"
				means the annual rental rate paid by the taxpayer.
(g) "Property used during the income year"
				includes property which is available for use in the taxpayer's trade or
				business during the income year.
(h) "Aircraft ready for flight" means
				aircraft owned or acquired through rental or lease (but not interchange) which
				are in the possession of the taxpayer and are available for service on the
				taxpayer routes.
(i) "Revenue
				service" means the use of aircraft ready for flight for the production of
				revenue.
(j) "Transportation
				revenue" means revenue earned by transporting passengers, freight and mail as
				well as revenue earned from liquor sales, pet crate rentals, etc.
(k) "Departures" means for purposes of
				Section 3.5.19.14 NMAC all takeoffs, whether they be regularly scheduled or
				charter flights, that occur during revenue service.