reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 21 - 2015 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.21.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
"2015 sustainable building tax credit"
means the
				  amendments passed by the legislature in 2021 to the new sustainable building
				  tax credit in the Income Tax Act and the Corporate and Franchise Tax Act. The
				  name of the new sustainable building tax credit was changed to the 2015
				  sustainable building tax credit.
A.
"Annual cap"
means the annual total amount of the 2015 sustainable
				building tax credit available to taxpayers owning sustainable
				buildings.
B.
"Applicant"
means a taxpayer who owns a sustainable residential or
				commercial building or manufactured home in New Mexico and who desires to have
				the department issue a certificate of eligibility for a 2015 sustainable
				building tax credit.
C.
"Application package"
means the documents an applicant submits to
				the department to apply for a certificate of eligibility for a 2015 sustainable
				building tax credit.
D.
"Build green New Mexico certification"
means the verification by a
				department-approved verifier that a building project has met certain
				prerequisites and performance benchmarks or credits within each category of the
				build green New Mexico rating system resulting in the issuance of a
				certification document.
E.
"Building type"
means the primary use of a building or section of
				a building as defined in target finder.
F.
"Certification"
means build
				green New Mexico certification or LEED certification or energy star qualified
				for manufactured housing.
G.
"Certificate of eligibility"
means the document with a unique
				identifying number that specifies the amount and taxable year and specific
				physical address for the approved 2015 sustainable building tax credit, the
				system certification level awarded to the building, the amount of qualified
				occupied square footage, a calculation of the maximum amount of the 2015
				sustainable building tax credit for which the owner would be eligible and the
				date of issuance.
H.
"Certification level"
means one of the following:
(1) LEED-H silver or build green New Mexico
				silver;
(2) LEED-H gold or build
				green New Mexico gold;
(3) LEED-H
				platinum or build green New Mexico emerald;
(4) LEED-NC silver or LEED-NC gold or LEED-NC
				platinum;
(5) LEED-EB (O&M) or
				LEED-CS silver;
(6) LEED-EB
				(O&M) or LEED-CS gold;
(7)
				LEED-EB (O&M) or LEED-CS platinum; or
(8) LEED-CI silver or LEED-CI gold or LEED-CI
				platinum.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 21 - 2015 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.21.8 - GENERAL PROVISIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A
				person who is the owner of a building in New Mexico that has been constructed,
				renovated or manufactured or is a sustainable residential or sustainable
				commercial building and that receives certification on or after January 1,
				2017, and prior to April 1, 2023, may receive a certificate of eligibility for
				a 2015 sustainable building tax credit. A subsequent purchaser of a sustainable
				residential building may receive a certificate if no tax credit has previously
				been claimed for the building.
B.
				The annual total amount in a calendar year of the 2015 sustainable building tax
				credit pursuant to the Income Tax Act and the Corporate Income and Franchise
				Tax Act available to taxpayers owning sustainable residential buildings is
				limited to $3,375,000 for sustainable residential buildings that are not
				manufactured housing. When the $3,375,000 cap for sustainable residential
				buildings is reached, based on all certificates of eligibility the department
				has issued, the department shall:
(1) if part
				of an eligible 2015 sustainable residential building tax funds are within the
				annual residential cap and part is over the annual cap, issue a certificate of
				eligibility for the amount under the annual cap for the applicable tax year and
				issue a certificate of eligibility for the balance for the subsequent tax year,
				except for the last taxable year when the 2015 sustainable building tax credit
				is in effect;
(2) if no 2015
				sustainable residential building tax credit funds are available in a given
				taxable year, issue a certificate of eligibility for the next subsequent tax
				year in which funds are available, except for the last taxable year when the
				2015 sustainable building tax credit is in effect; or
(3) the department may issue certificates of
				eligibility to applicants who meet the requirements for the 2015 sustainable
				residential buildings tax credit in a taxable year when applications for the
				2015 sustainable residential buildings tax credit exceed the annual cap, but
				applications for the 2015 sustainable commercial buildings or manufactured
				housing tax credits are under the annual cap for that type of sustainable
				building by February 1 of any year in which the tax credit is in
				effect.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 21 - 2015 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.21.9 - VERIFIER ELIGIBILITY FOR ALL BUILDINGS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The department reviews the qualifications
				for verifiers of the build green New Mexico or LEED-H certifications or LEED
				commercial buildings, which shall be provided annually to the department, based
				on the following criteria:
(1) the verifier
				is independent from the homebuilders or homeowners or commercial building owner
				that may apply for certification;
(2) the verifier has adequate staff and
				expertise to provide certification services, including:
(a) experience in green building
				services;
(b) ability to enlist and
				serve builders and provide training, consulting and other guidance as
				necessary;
(c) a method of auditing
				the certification process to maintain adequate stringency; and
(d) ability to administer the program and
				report on the certifications, audits and other relevant information the
				department may request;
(3) the verifier can identify the geographic
				area being served; and
(4) the
				verifier provides a statement that expresses a commitment to promoting
				energy-efficient green building with the highest standard of
				excellence.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 21 - 2015 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.21.11 - VERIFICATION OF THE ALTERNATIVE METHOD USED FOR THE ENERGY REDUCTION REQUIREMENT

Current through Register Vol. 35, No. 13, July 16, 2024
A. In
				the event the sustainable commercial building is a building type that is not
				available in target finder and the applicant uses an alternative method to
				establish the energy reduction requirement, the applicant shall include the
				following information in addition to the other application requirements:
(1) a narrative describing the methodology
				used;
(2) the kilo british thermal
				units per square foot per year for all buildings, real or modeled, used as a
				basis of comparison, broken out by all energy sources, and including the
				percent of use for each energy source; and
(3) all formulas, assumptions and other
				explanation necessary to clarify how the kilo british thermal units per square
				foot per year for this project was derived.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 21 - 2015 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.21.12 - APPLICATION REVIEW PROCESS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The department considers applications in
				the order received, according to the day they are received, but not the time of
				day.
B. The department approves or
				disapproves an application package following the receipt of the complete
				application package. The department disapproves an application that is not
				complete or correct. The department's disapproval letter shall state the
				reasons why the department disapproved the application. The applicant may
				resubmit the application package for the disapproved project. The department
				places the resubmitted application in the review schedule as if it were a new
				application.
C. The department
				reviews the application package to calculate the maximum 2015 sustainable
				building tax credit, check accuracy of the applicant's documentation and
				determine whether the department issues a certificate of eligibility for the
				2015 sustainable building tax credit.
D. If an applicant has claimed a solar market
				development tax credit (in effect January 1, 2006, through December 31, 2016)
				that solar system cannot be used to meet the requirements of either the
				certification level applied for, or the energy reduction achieved. If an
				applicant has received a solar market development tax credit for a system that
				is used to meet the requirements of the certification level applied for or the
				energy reduction achieved, the department shall disapprove the application for
				the 2015 sustainable building tax credit. The applicant may submit a revised
				application package to the department that does not include the electricity
				projected to be generated by the solar system. The department places the
				resubmitted application in the review schedule as if it were a new
				application.
E. If the department
				finds that the application package meets the requirements and a 2015
				sustainable building tax credit is available, the department issues the
				certificate of eligibility for a 2015 sustainable building tax credit. If a
				2015 sustainable building tax credit is partially available or not available,
				the department issues a certificate of eligibility for any amount that is
				available and a certificate of eligibility for the balance for the next taxable
				year except in the last year that the tax credit is in effect. The notification
				shall include the taxpayer's contact information, taxpayer identification
				number, certificate of eligibility number or numbers, the rating system
				certification level awarded to the building, the amount of qualified occupied
				square footage in the building and calculation of the maximum amount of the
				2015 sustainable building tax credit for which the owner would be
				eligible.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 21 - 2015 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.21.14 - CLAIMING THE STATE TAX CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
To claim the 2015 sustainable building tax credit, an
				  applicant shall submit all certificates of eligibility to the taxation and
				  revenue department within 30 days of the department's issuance, along with a
				  completed form provided by the taxation and revenue department, and any other
				  information the taxation and revenue department requires. The applicant shall
				  submit the certificate to the taxation and revenue department no later than
				  December 31, 2024.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 22 - 2021 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.22.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
3.4.22 NMAC applies to the application and certification
				  procedures for administration of the 2021 sustainable building tax credit for
				  sustainable residential buildings, sustainable commercial buildings, the
				  permanent installation of manufactured housing or the installation of
				  energy-conserving products to existing buildings.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 22 - 2021 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.22.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
3.4.22 NMAC is established under the authority of Section
				  7-2A-28.1 and Subsection E of 9-1-5 NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 22 - 2021 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.22.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
July 12, 2022, unless a later date is cited at the end of a
				  section.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 22 - 2021 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.22.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
3.4.22 NMAC's objective is to establish procedures for
				  administering the program to issue a certificate of eligibility for the 2021
				  sustainable building tax credit for sustainable residential and commercial
				  buildings, permanent installation of manufactured housing, renovation of
				  existing buildings or the installation of energy-conserving products to
				  existing buildings.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 22 - 2021 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.22.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For additional definitions refer to Section 7-2A-28.1, NMSA
				  1978.
A.
"Annual cap"
means the annual total amount of the 2021 sustainable building tax credit
				available to taxpayers owning sustainable buildings.
B.
"Applicant"
means a taxpayer
				who owns a sustainable residential or commercial building or manufactured
				housing or who has renovated an existing building or installed
				energy-conserving products in New Mexico and who desires to have the department
				issue a certificate of eligibility for a 2021 sustainable building tax
				credit.
C.
"Application
				package"
means the documents an applicant submits to the department to
				apply for a certificate of eligibility for a 2021 sustainable building tax
				credit.
D.
"Build green New
				Mexico certification"
means the verification by a department-approved
				verifier that a building project has met certain prerequisites and performance
				benchmarks or credits within each category of the build green New Mexico rating
				system resulting in the issuance of a certification document.
E.
"Build green New Mexico rating
				system"
means the certification standards adopted by build green New
				Mexico in November 2014, which includes water conservation standards.
F.
"Building project"
means a
				new construction of a sustainable commercial or residential building,
				installation of manufactured housing, renovation of an existing building or
				installation of energy-conserving products to existing buildings.
G.
"Building type"
means the
				primary use of a building or section of a building as defined in target
				finder.
H.
"Certificate of
				eligibility"
means the document with a unique identifying number that
				specifies the specific physical address for the approved 2021 sustainable
				building tax credit, the rating system certification level awarded to the
				building, the amount of qualified occupied square footage, a calculation of the
				maximum amount of the 2021 sustainable building tax credit for which the owner
				would be eligible, the date of issuance and the first taxable year the credit
				shall be claimed.
I.
"Certification level"
means one of the following:
(1) LEED-H gold or build green New Mexico
				gold;
(2) LEED-H platinum or build
				green New Mexico emerald;
(3)
				LEED-NC gold;
(4) LEED-NC
				platinum;
(5) LEED-EB (O&M) or
				LEED-CS gold;
(6) LEED-EB (O&M)
				or LEED-CS platinum;
(7) LEED-CI
				gold or LEED-CI platinum; and
(8)
				manufactured housing.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 22 - 2021 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.22.9 - VERIFIER ELIGIBILITY FOR ALL BUILDINGS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The department reviews the qualifications
				for verifiers of the build green New Mexico or LEED-H certifications or LEED
				commercial buildings, which shall be provided annually to the department, based
				on the following criteria:
(1) the verifier
				is independent from the homebuilders or homeowners or commercial building
				owners that may apply for certification;
(2) the verifier has adequate staff and
				expertise to provide certification services, including:
(a) experience in green home building and
				commercial building services;
(b)
				ability to enlist and serve builders and provide training, consulting and other
				guidance as necessary;
(c) a method
				of auditing the certification process to maintain adequate stringency;
				and
(d) ability to administer the
				program and report on the certifications, audits and other relevant information
				the department may request;
(3) the verifier can identify the geographic
				area being served; and
(4) the
				verifier provides a statement that expresses a commitment to promoting
				energy-efficient green building with the highest standard of
				excellence.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 4 - CORPORATE INCOME TAXES › Part 22 - 2021 SUSTAINABLE BUILDING TAX CREDIT › Section 3.4.22.15 - CLAIMING THE STATE TAX CREDIT

Current through Register Vol. 35, No. 13, July 16, 2024
To claim the 2021 sustainable building tax credit, an
				  applicant shall submit all certificates of eligibility to the taxation and
				  revenue department within 30 days of the department's issuance, along with a
				  completed form provided by the taxation and revenue department, and any other
				  information the taxation and revenue department may require.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 1 - GENERAL PROVISIONS › Section 3.5.1.1 - 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 1 - GENERAL PROVISIONS › Section 3.5.1.2 - 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 1 - GENERAL PROVISIONS › Section 3.5.1.5 - 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 1 - GENERAL PROVISIONS › Section 3.5.1.6 - 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 1 - GENERAL PROVISIONS › Section 3.5.1.8 - CITATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Unless otherwise noted, all citations to statute in Title 3,
				  Chapter 5 NMAC are to the New Mexico Statutes Annotated, 1978 (NMSA
				  1978).
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 1 - GENERAL PROVISIONS › Section 3.5.1.9 - BUSINESS AND NONBUSINESS INCOME" DEFINED

Current through Register Vol. 35, No. 13, July 16, 2024
A. Section
				7-4-2 NMSA 1978
				defines "business income" as income arising from transactions and activity in
				the regular course of the taxpayer's trade or business and includes income from
				tangible and intangible property if the acquisition, management or disposition
				of the property constitute integral parts of the taxpayer's regular trade or
				business operations. In essence, all income which arises from the conduct or
				the disposition or liquidation of trade or business operations of a taxpayer is
				business income.
B. "Nonbusiness
				income" means all income other than business income.
C. The classification of income by the labels
				occasionally used, such as manufacturing income, compensation for services,
				sales income, interest, dividends, rents, royalties, gains, operating income,
				nonoperating income, etc., is of no aid in determining whether income is
				business or nonbusiness income. Income of any type or class and from any source
				is business income if it arises from transactions and activity occurring in the
				regular course of a trade or business. Accordingly, the critical element in
				determining whether income is "business income" or "nonbusiness income" is the
				identification of the transactions and activity which are the elements of
				particular trade or business. In general, all transactions and activities of
				the taxpayer which are dependent upon or contribute to the operations of the
				taxpayer's economic enterprise as a whole constitute the taxpayer's trade or
				business and will be transactions and activity arising in the regular course
				of, and constitute integral parts of, a trade or business.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 1 - GENERAL PROVISIONS › Section 3.5.1.10 - BUSINESS AND NONBUSINESS INCOME; APPLICATION OF DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The following are rules for determining
				whether particular income is business or nonbusiness income.
B. Rental income from real and tangible
				property is business income if the property with respect to which the rental
				income was received is used in the taxpayer's trade or business or is
				incidental thereto and therefore is includable in the property factor under
				Part 3.5.11 NMAC.
C. Gain or loss
				from the sale, exchange or other disposition of real or tangible or intangible
				personal property constitutes business income if the property while owned by
				the taxpayer was used in the taxpayer's trade or business. However, if such
				property was utilized for the production of nonbusiness income or otherwise was
				removed from the property factor before its sale, exchange or other
				disposition, the gain or loss will constitute nonbusiness income.
D. "Interest income" is business income where
				the intangible with respect to which the interest was received arises out of or
				was created in the regular course of the taxpayer's trade or business
				operations or where the purpose for acquiring and holding the intangible is
				related to or incidental to such trade or business operations.
E. Dividends are business income where the
				stock with respect to which the dividends are received arises out of or was
				acquired in the regular course of the taxpayer's trade or business operations
				or where the purpose of acquiring and holding the stock is related to or
				incidental to such trade or business operations.
F. Patent and copyright royalties are
				business income where the patent or copyright with respect to which the
				royalties were received arises out of or was created in the regular course of
				the taxpayer's trade or business operations or where the purpose for acquiring
				and holding the patent or copyright is related or incidental to such trade or
				business operations.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 1 - GENERAL PROVISIONS › Section 3.5.1.11 - PRORATION OF DEDUCTIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. In
				most cases an allowable deduction of a taxpayer will be applicable only to the
				business income arising from a particular trade or business or to a particular
				item of nonbusiness income. In some cases an allowable deduction may be
				applicable to the business incomes of more than one trade or business, to
				several items of nonbusiness income or to both. In such cases the deduction
				shall be prorated among such trades or businesses and such items of nonbusiness
				income in a manner which fairly distributes the deduction among the classes of
				income to which it is applicable.
B. In filing returns with this state, if the
				taxpayer departs from or modifies the manner of prorating any such deduction
				used in returns for prior years, the taxpayer shall disclose in the return for
				the current year the nature and extent of the modification.
C. If the returns or reports filed by a
				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 application or proration of any deduction, 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 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.1 - 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 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.2 - 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 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.3 - 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 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.5 - 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 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.6 - 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 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. "Allocation" and
				"allocate" refer to the assignment of nonbusiness income to a particular
				state.
B. "Apportionment" and
				"apportion" refer to the division of business income between states by the use
				of a formula containing apportionment factors.
C. "Business activity" refers to the
				transactions and activity occurring in the regular course of a particular trade
				or business of a taxpayer.
D.
				"Taxpayer" means any individual subject to tax imposed by the Income Tax Act or
				any corporation required to file an income tax return pursuant to the Corporate
				Income and Franchise Tax Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.8 - APPLICATION OF SECTIONS 7-4-2 TO 7-4-19 NMSA 1978; APPORTIONMENT

Current through Register Vol. 35, No. 13, July 16, 2024
Where a taxpayer elects to apportion income pursuant to
				  Section
				  7-2-11
				  NMSA 1978 or Section
				  7-2A-8
				  NMSA 1978, if the business activity in respect to any trade or business of a
				  taxpayer occurs both within and without this state, and if by reason of such
				  business activity the taxpayer is taxable in another state, the portion of the
				  net income (or net loss) arising from such trade or business which is derived
				  from sources within this state shall be determined by apportionment in
				  accordance with Sections
				  7-4-10
				  to
				  7-4-18
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.9 - APPLICATION OF SECTIONS 7-4-2 TO 7-4-19 NMSA 1978; COMBINED REPORT

Current through Register Vol. 35, No. 13, July 16, 2024
If a particular trade or business is carried on by a taxpayer
				  and one or more affiliated corporations, nothing in Sections
				  7-4-2 to
				  7-4-19
				  NMSA 1978 or in Title 3, Chapter 5 NMAC shall preclude the use of a "combined
				  report" whereby the entire business income of such trade or business is
				  apportioned in accordance with Sections
				  7-4-10
				  to
				  7-4-18
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.10 - APPLICATION OF SECTIONS 7-4-2 TO 7-4-19 NMSA 1978; ALLOCATION

Current through Register Vol. 35, No. 13, July 16, 2024
Any taxpayer electing to apportion income pursuant to Section
				  7-2-11
				  NMSA 1978 or Section
				  7-2A-8
				  NMSA 1978 and who is subject to the taxing jurisdiction of this state shall
				  allocate all of its net nonbusiness income or loss within or without this state
				  in accordance with Sections
				  7-4-5
				  to
				  7-4-9
				  NMSA 1978. Such income or loss to be allocated within or without this state is
				  the gross income less related expenses.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 3 - ALLOCATION AND APPORTIONMENT OF INCOME IN GENERAL › Section 3.5.3.11 - CONSISTENCY AND UNIFORMITY IN REPORTING

Current through Register Vol. 35, No. 13, July 16, 2024
A. In filing with this state, if the taxpayer
				departs from or modifies the manner in which income has been classified as
				business income or nonbusiness income 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 a taxpayer for 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 classification of income as
				business or nonbusiness income, 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 4 - WHEN TAXABLE IN ANOTHER STATE › Section 3.5.4.1 - 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 4 - WHEN TAXABLE IN ANOTHER STATE › Section 3.5.4.2 - 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 4 - WHEN TAXABLE IN ANOTHER STATE › Section 3.5.4.3 - 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 4 - WHEN TAXABLE IN ANOTHER STATE › Section 3.5.4.5 - 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 4 - WHEN TAXABLE IN ANOTHER STATE › Section 3.5.4.6 - 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 4 - WHEN TAXABLE IN ANOTHER STATE › Section 3.5.4.8 - TAXABLE IN ANOTHER STATE - IN GENERAL

Current through Register Vol. 35, No. 13, July 16, 2024
A taxpayer's income from business activity is taxable without
				  this state if such taxpayer, by reason of such business activity, is taxable in
				  another state within the meaning of Section
				  7-4-4
				  NMSA 1978. A taxpayer is taxable within another state if it meets either one of
				  two tests:
A. if by reason of business
				activity in another state the taxpayer is subject to one of the types of taxes
				specified in Subsection A of Section
				7-4-4
				NMSA 1978, namely: a net income tax, a franchise tax measured by net income, a
				franchise tax for the privilege of doing business or a corporate stock tax;
				or
B. if by reason of such business
				activity another state has jurisdiction to subject the taxpayer to a net income
				tax, regardless of whether or not the state imposes such a tax on a
				taxpayer.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 4 - WHEN TAXABLE IN ANOTHER STATE › Section 3.5.4.9 - TAXABLE IN ANOTHER STATE - WHEN A TAXPAYER IS "SUBJECT TO" A TAX - FOR TAXABLE YEARS BEGINNING PRIOR TO JANUARY 1, 2020

Current through Register Vol. 35, No. 13, July 16, 2024
A. A taxpayer is "subject to" one of the
				taxes specified in Subsection A of Section
				7-4-4
				NMSA 1978 if it carries on business activity in such state and such state
				imposes or has the ability to impose such a tax thereon. Any taxpayer which
				asserts that it is subject to one of the taxes specified in Subsection A of
				Section
				7-4-4
				NMSA 1978 in another state shall furnish to the department upon its request
				evidence to support such assertion. The department may request that such
				evidence include proof that the taxpayer has filed the requisite tax return in
				such other state and has paid any taxes imposed under the law of such other
				state; the taxpayer's failure to produce such proof may be taken into account
				in determining whether the taxpayer in fact is subject to one of the taxes
				specified in Subsection A of Section
				7-4-4
				NMSA 1978 in such other state.
B.
				If the taxpayer voluntarily files and pays one or more of such taxes when not
				required to do so by the laws of that state or pays a minimal fee for
				qualification, organization or for the privilege of doing business in that
				state, but
(1) does not actually engage in
				business activity in that state; or
(2) does actually engage in some business
				activity, not sufficient for nexus, and the minimum tax bears no relation to
				the taxpayer's business activity within such state, the taxpayer is not
				"subject to" one of the taxes specified within the meaning of Subsection A of
				Section
				7-4-4
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 4 - WHEN TAXABLE IN ANOTHER STATE › Section 3.5.4.10 - TAXABLE IN ANOTHER STATE - WHEN A STATE HAS JURISDICTION TO SUBJECT A TAXPAYER TO A NET INCOME TAX FOR TAXABLE YEARS BEGINNING PRIOR TO JANUARY 1, 2020

Current through Register Vol. 35, No. 13, July 16, 2024
The second test, that of Subsection B of Section
				  7-4-4
				  NMSA 1978, applies if the taxpayer's business activity is sufficient to give
				  the state jurisdiction to impose a net income tax by reason of such business
				  activity under the constitution and statutes of the United States. Jurisdiction
				  to tax is not present where the state is prohibited from imposing the tax by
				  reason of the provisions of Public Law 86-272, 15 U.S.C.A. Sections 381-385. In
				  the case of any "state" as defined in Section
				  7-4-2 NMSA 1978 other
				  than a state of the United States or political subdivision of such state, the
				  determination of whether such "state" has jurisdiction to subject the taxpayer
				  to a net income tax shall be made as though the jurisdictional standards
				  applicable to a state of the United States applied in that "state". If
				  jurisdiction is otherwise present, such "state" is not considered as without
				  jurisdiction by reason of the provisions of a treaty between that "state" and
				  the United States. This section applies to taxable years beginning prior to
				  January 1, 2020. For taxable years beginning on or after January 1, 2020 see
				  3.4.11 NMAC.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 4 - WHEN TAXABLE IN ANOTHER STATE › Section 3.5.4.11 - TAXABLE IN ANOTHER STATE; WHEN A TAXPAYER IS "SUBJECT TO" A TAX - FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2020

Current through Register Vol. 35, No. 13, July 16, 2024
For periods beginning on or after January 1, 2020. New Mexico
				  follows the so-called Finnigan approach. This approach determines when a
				  corporation will be deemed to be taxable in New Mexico as well as to the
				  question of when a taxpayer is "taxable in another state" for purposes of
				  Section
				  7-4-4
				  NMSA 1978, and sourcing of sales under Sections
				  7-4-17
				  and
				  7-4-18
				  NMSA 1978. In general, under the Finnigan approach, New Mexico looks to the
				  activities of the unitary group, or if the group has elected to file a
				  consolidated return, to the activities of the consolidated group, to determine
				  if any member of the group is taxable in New Mexico or in another state. If the
				  group, or any member of the group, could be subjected to New Mexico corporate
				  income tax under both constitutional principles and any applicable federal
				  statutory law, then all members of the group are taxable in New Mexico.
				  Similarly, when determining if a member of the group is "taxable in another
				  state," if the state has jurisdiction to impose such a tax on the unitary
				  business in whatever form it may allow that unitary business to file, whether
				  or not it does impose such a tax, then all members of that unitary group are
				  taxable in that state. This version of this section applies to taxable years
				  beginning on or after January 1, 2020.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 5 - ALLOCATION OF CERTAIN NONBUSINESS INCOME › Section 3.5.5.1 - 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 5 - ALLOCATION OF CERTAIN NONBUSINESS INCOME › Section 3.5.5.2 - 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 5 - ALLOCATION OF CERTAIN NONBUSINESS INCOME › Section 3.5.5.3 - 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 5 - ALLOCATION OF CERTAIN NONBUSINESS INCOME › Section 3.5.5.5 - 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 5 - ALLOCATION OF CERTAIN NONBUSINESS INCOME › Section 3.5.5.6 - 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 5 - ALLOCATION OF CERTAIN NONBUSINESS INCOME › Section 3.5.5.8 - RELATED EXPENSES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				From the items of gross income from rents, patent and copyright royalties
				interest, dividends and capital gains being specifically allocated to or
				outside this state, there shall be deducted the expenses related thereto. The
				term "expenses related thereto" as used in Section 3.5.5.8 NMAC means the
				expenses and other deductions directly attributable to such rents, patent and
				copyright royalties, interest, dividends and capital gains and a ratable part
				of any other expenses or deductions which cannot definitely be allocated to
				some item or class of income.
B.
				The amount to be allocated to or outside this state is this gross income from
				such rents, patent and copyright royalties, interest, dividends and capital
				gains less the related expenses.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 10 - APPORTIONMENT OF BUSINESS INCOME › Section 3.5.10.1 - 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 10 - APPORTIONMENT OF BUSINESS INCOME › Section 3.5.10.2 - 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 10 - APPORTIONMENT OF BUSINESS INCOME › Section 3.5.10.3 - 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 10 - APPORTIONMENT OF BUSINESS INCOME › Section 3.5.10.5 - 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 10 - APPORTIONMENT OF BUSINESS INCOME › Section 3.5.10.6 - 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 10 - APPORTIONMENT OF BUSINESS INCOME › Section 3.5.10.9 - APPORTIONMENT OF BUSINESS INCOME

Current through Register Vol. 35, No. 13, July 16, 2024
"Business income" is defined in Section
				  7-4-2 NMSA 1978 and
				  Part 3.5.1 NMAC. The business income to be apportioned is net business income
				  after taking into account only those expenses and deductions which are
				  allowable under the United States Internal Revenue Code of 1986, as amended,
				  which are related to the production of business income. Expenses and deductions
				  attributable to nonbusiness income may not be taken into account in arriving at
				  net business income to be apportioned.
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 3.5.11.1 - 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 11 - PROPERTY FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.11.2 - 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 11 - PROPERTY FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.11.3 - 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 11 - PROPERTY FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.11.5 - 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 11 - PROPERTY FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.11.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the 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 11 - PROPERTY FACTOR FOR APPORTIONMENT OF BUSINESS INCOME › Section 3.5.11.8 - PROPERTY FACTOR - IN GENERAL

Current through Register Vol. 35, No. 13, July 16, 2024
A. The property factor of the apportionment
				formula for the trade or business of the taxpayer shall include all real and
				tangible personal property owned or rented by the taxpayer and used during the
				tax period in the regular course of such trade or business. The term "real and
				tangible personal property" includes land, buildings, machinery, stocks of
				goods, equipment and other real and tangible personal property but does not
				include coin or currency.
B.
				Property used in connection with the production of nonbusiness income shall be
				excluded from the property factor. Property used both in the regular course of
				taxpayer's trade or business and in the production of nonbusiness income shall
				be included in the factor only to the extent the property is used in the
				regular course of taxpayer's trade or business. The method of determining that
				portion of the value to be included in the factor will depend upon the facts of
				each case.
C. The property factor
				shall reflect the average value of property includable in the factor.