reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.10 - DOCUMENTATION REQUIRED

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Receipts which are deductible under the Gross Receipts and Compensating Tax Act
				can be deducted only if documentation justifying the deduction is maintained so
				it can be verified upon audit.
B.
				The following examples illustrate the documentation requirements.
(1) Example 1: X sells tangible personal
				property to Y, a governmental agency. X may deduct the sale if the government
				purchase order is retained or a copy of the check, the check stub or voucher
				identifying the source of payment is retained for audit purposes.
(2) Example 2: A, a grocer, makes a cash sale
				to C, a cafe. C has issued the appropriate type nontaxable transaction
				certificate (nttc) to A. A may deduct the receipts from the sale if a sales
				ticket is prepared identifying the property purchased, the name of the customer
				and the date and amount of the transaction.
(3) Example 3: M, a motor parts store,
				deducts receipts for sales made over the counter to cash customers who have
				delivered proper nttcs. A sales ticket is prepared by M indicating the date,
				the amount and the items purchased. "CASH" is written in the space provided for
				the customer's name. If M is audited, the deduction would be disallowed; the
				transaction could not be related to a specific nttc.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.11 - CONSTRUCTION CONTRACTORS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Any person applying to execute nontaxable transaction certificates (nttcs)
				related to deductions found under Sections
				7-9-51,
				7-9-52
				or
				7-9-52.1
				NMSA 1978 must indicate the applicant's New Mexico contractor's license number
				or furnish proof that no contractor's license is required by the construction
				industries division of the regulations and licensing department in order to
				engage in one of the construction activities listed in
				7-9-3.4
				NMSA 1978. Failure to comply with 3.2.201.11 NMAC will result in denial of the
				requested certificates.
B. A person
				engaged in the construction business who makes any false or misleading
				representations in any material respect in an application for nttcs may become
				subject to the penalties imposed by Section
				7-1-73 NMSA 1978 as
				well as other penalties, civil or criminal, prescribed in the Tax
				Administration Act. False or misleading representations include, but are not
				confined to:
(1) indicating a contractor's
				license number on the application which is not issued to the applicant or which
				cannot lawfully be used by the applicant;
(2) applying for nttcs which someone other
				than the applicant will execute; or
(3) furnishing false or misleading
				documentation that a contractor's license is not required of the applicant by
				the construction industries division.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.12 - DELIVERY OF NTTC AFTER DATE REPORT DUE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Except as provided otherwise in Subsection
				D of Section 3.2.201.12 NMAC, a taxpayer who receives a properly executed
				nontaxable transaction certificate (nttc) or other documentation required by
				Section
				7-9-43
				NMSA 1978 for a transaction included in a previously filed return and on which
				the taxpayer paid the gross receipts tax is entitled to a refund of that
				previously paid tax. To obtain the refund the taxpayer is required to file a
				claim for refund and submit either an amended return for each period to which
				the refund relates or a schedule acceptable to the department containing
				equivalent information.
B. A
				taxpayer may not accumulate the allowable deductible receipts for prior periods
				and take the entire amount as a deduction for the period in which the proper
				nttc or other documentation is received.
C. A taxpayer who has been audited by the
				department and has failed to present the nttcs or other documentation required
				within the time required to support deductions claimed after having been
				requested to do so pursuant to Section 3.2.201.8 NMAC is not entitled to the
				deductions.
D. The provisions of
				the preceding paragraphs do not apply to deductions claimed with respect to
				transactions occurring during the period July 1, 1992 through May 31, 1997 if
				the seller or lessor had received a notice from the department pursuant to
				Section 3.2.201.8 NMAC to present the nttcs or other documentation and the time
				for complying with the request expired prior to July 1, 1997. In such cases for
				receipts from transactions during the period July 1, 1992 through May 31, 1997,
				the nttc or other acceptable proof must be in the possession of the seller or
				lessor no later than the date gross receipts from the transaction are required
				to be reported. Receipt of the nttc or other acceptable proof after that date
				does not support the deduction or a claim for refund with respect to gross
				receipts required to be reported prior to that date; such nttc or other
				acceptable proof will support only deductions for gross receipts required to be
				reported on or after the date the nttc or other acceptable proof was received.
				With respect to gross receipts in the period July 1, 1992 through May 31, 1997
				for which an appropriate nttc or other acceptable proof is not in the
				possession of the seller or lessor at the date the gross receipts are required
				to be reported, any deduction claimed will be disallowed and any claim for
				refund submitted prior to July 1, 1997 will be denied.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.13 - MULTIJURISDICTIONAL UNIFORM SALES AND USE TAX CERTIFICATES

Current through Register Vol. 35, No. 13, July 16, 2024
A. The department deems the uniform sales and
				use tax certificate issued by the multistate tax commission or by any member
				state other than New Mexico to a taxpayer not required to be registered in New
				Mexico to be a nontaxable transaction certificate (nttc) equivalent to those
				nttc types issued by the department to support the deductions under Sections
				7-9-46,
				7-9-47
				and
				7-9-75
				NMSA 1978. As evidence of the deductibility of a specific transaction
				authorized under Sections
				7-9-46,
				7-9-47
				and
				7-9-75
				NMSA 1978 the department will accept the multistate tax commission uniform
				sales and use tax certificate:
(1) only in
				those situations in which possession of a properly executed nttc is acceptable
				evidence of the deductibility of the transaction; and
(2) if the uniform sales and use tax
				certificate is issued by the multistate tax commission or a member state other
				than New Mexico to a taxpayer not required to be registered in New
				Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.14 - GOOD FAITH ACCEPTANCE OF NONTAXABLE TRANSACTION CERTIFICATES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Acceptance of
				nontaxable transaction certificates (nttcs) in good faith that the property or
				service sold thereunder will be employed by the purchaser in a nontaxable
				manner is determined at the time of each transaction. The taxpayer claiming the
				protection of a certificate continues to be responsible that the goods
				delivered or services performed thereafter are of the type covered by the
				certificate.
B. Example 1: A type 6
				nttc, which may be executed and accepted for the purchase of construction
				materials, will not protect the deduction taken by an automobile dealer for
				receipts from the sale of automobile parts or a lumber yard for receipts from
				the sale of a power saw.
C. Example
				2: An automobile dealer who accepts a type 2 nttc from an airline for the
				purchase of parts cannot rely on the type 2 (resale of tangibles) nttc to
				protect the deduction of receipts from such sale unless the dealer can
				demonstrate good faith acceptance by showing that the airline is in the
				business of reselling parts. A statement on the back of or attached to the
				certificate separately signed by a responsible employee of the airline showing
				that the airline runs a retail parts store would protect the dealer who did not
				know the statement was false.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.15 - PHOTOCOPIES OR OTHER REPRODUCTIONS OF NONTAXABLE TRANSACTION CERTIFICATES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Except as
				provided otherwise in Section 3.2.201.15 NMAC, no person may make photocopies
				of, or otherwise reproduce, nontaxable transaction certificates (nttcs) issued
				or executed by the department. Photocopies or other reproductions may be made:
(1) by the department or, upon request of the
				department, by the person to whom the nttcs have been issued or the seller or
				lessor who has accepted an nttc for audit, tax compliance or tax administration
				purposes;
(2) by the person to whom
				the nttcs have been issued by the department for internal record keeping
				purposes or in response to a request from a seller or lessor to whom the person
				has delivered an executed nttc for a duplicate of the executed nttc;
				and
(3) by the seller or lessor who
				has accepted in good faith a nttc executed by a buyer or lessee for internal
				record keeping purposes only.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.16 - DIFFERENCE BETWEEN "ISSUE" AND "EXECUTE"

Current through Register Vol. 35, No. 13, July 16, 2024
As used in Section
				  7-9-43
				  NMSA 1978 and in regulations concerning nontaxable transaction certificates
				  (nttcs), the verb "issue" indicates the process by which the department
				  supplies a requesting taxpayer with one or more nttc forms, which in turn are
				  to be completed by that taxpayer and delivered to the taxpayer's vendors to
				  support a claim of deduction by the vendor. Only the department issues nttcs.
				  The verb "execute" refers to the process by which a taxpayer, having already
				  obtained the requisite forms from the department, completes an nttc form by
				  entering the required information about the vendor to whom the nttc is to be
				  delivered. When timely delivered, the executed nttc serves as the required or
				  permitted proof to support a claim of deduction by the vendor with respect to
				  certain transactions between the taxpayer and the vendor. The department, as a
				  purchaser of goods or services, may also execute nttc forms for delivery to its
				  vendors.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.17 - SPECIAL NONTAXABLE TRANSACTION CERTIFICATE TYPE OSB AUTHORIZED FOR CERTAIN OUT-OF-STATE BUYERS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Any person engaging in business in New Mexico who, within the time required by
				the provisions of Section
				7-9-43
				NMSA 1978, accepts a nontaxable transaction certificate denominated as an
				nttc-osb in good faith that the purchaser will, in the ordinary course of
				business, either resell the property purchased or incorporate the property
				purchased as an ingredient or component part of a manufactured product, may
				deduct the receipts from the sale under Section
				7-9-46
				or
				7-9-47
				NMSA 1978. A person who performs a manufacturing service in New Mexico and who,
				within the time required by the provisions of Section
				7-9-43
				NMSA 1978, accepts a nttc-osb in good faith that the purchaser is in the
				business of manufacturing and will have the manufacturing service performed
				directly upon tangible personal property the purchaser is in the business of
				manufacturing, or ingredient or component parts thereof, may deduct the
				receipts from performing the manufacturing service under Section
				7-9-75
				NMSA 1978.
B. A purchaser qualifies
				to execute an nttc-osb if the purchaser:
(1)
				maintains its principle place of business and commercial domicile outside New
				Mexico;
(2) is registered with or
				licensed by the state or foreign jurisdiction in which the purchaser maintains
				a place of business for sales or similar taxes;
(3) does not maintain a business location in
				New Mexico;
(4) is not subject to
				New Mexico gross receipts tax pursuant to Section
				7-9-4
				NMSA 1978 on its receipts; and
(5)
				is not registered as an agent to collect and pay over New Mexico compensating
				tax pursuant to Section
				7-9-10
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.18 - RESERVED

Current through Register Vol. 35, No. 13, July 16, 2024
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS › Section 3.2.201.19 - BORDER STATES UNIFORM SALE FOR RESALE CERTIFICATE

Current through Register Vol. 35, No. 13, July 16, 2024
A. For transactions specified below, the
				department deems a border states uniform sale for resale certificate issued by
				a border state other than New Mexico to a taxpayer not required to be
				registered in New Mexico to be a nontaxable transaction certificate (nttc)
				equivalent to those nttc types issued by the department that support the
				deductions under Sections
				7-9-46,
				7-9-47
				and
				7-9-75
				NMSA 1978. The department will accept the border states uniform sale for resale
				certificate as evidence of the deductibility of a specific transaction
				authorized under Sections
				7-9-46,
				7-9-47
				and
				7-9-75
				NMSA 1978, only when the following conditions exist:
(1) the buyer is purchasing tangible personal
				property for resale or incorporation as an ingredient or component part into a
				manufactured product in the ordinary course of the buyer's business or the
				buyer is purchasing a manufacturing service on a manufactured product or
				ingredient or component part thereof;
(2) the tangible personal property purchased
				or the product, or ingredient or component part thereof, upon which the
				manufacturing service is performed is to be transported across state or
				national boundaries; and
(3) the
				buyer is located in the northern border region or in a border state other than
				New Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 203 - DEDUCTIONS › Section 3.2.203.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 203 - DEDUCTIONS › Section 3.2.203.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
11/15/96, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 203 - DEDUCTIONS › Section 3.2.203.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 203 - DEDUCTIONS › Section 3.2.203.8 - LIMITATION ON NUMBER OF DEDUCTIONS ALLOWED

Current through Register Vol. 35, No. 13, July 16, 2024
A. The receipts from a single transaction may
				be deducted only once, even when two or more sections of the Gross Receipts and
				Compensating Tax Act allow a deduction for the receipts from that
				transaction.
B. Example: X
				appliance company sells electric ranges, refrigerators and dishwashers to Y, a
				home builder, who installs them in the kitchens of houses that Y is building
				for sale. X reports the receipts from the transaction to the department but
				deducts them first under Section
				7-9-47
				NMSA 1978, which allows a deduction for sales for resale, and then again under
				Section
				7-9-51
				NMSA 1978, which permits a deduction for sales of tangible personal property to
				persons engaged in the construction business. X will not be allowed to deduct
				the same receipts twice. Receipts, whether deductible under one or several
				sections (Sections
				7-9-46
				through
				7-9-78.1
				NMSA 1978 or Sections
				7-9-83
				through
				7-9-90
				NMSA 1978) may be deducted only once from gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 203 - DEDUCTIONS › Section 3.2.203.9 - PERSONS WHOSE RECEIPTS ARE DEDUCTIBLE

Current through Register Vol. 35, No. 13, July 16, 2024
Persons engaging in business, except those persons all of
				  whose receipts are exempted by the provisions of Sections
				  7-9-13
				  through
				  7-9-42 NMSA 1978 or
				  other law, must register and report their gross receipts to the department even
				  if such receipts are deductible under one or more provisions of Sections
				  7-9-46
				  through
				  7-9-78.1
				  or
				  7-9-83
				  through
				  7-9-90
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 203 - DEDUCTIONS › Section 3.2.203.10 - DEDUCTIONS FROM GROSS RECEIPTS

Current through Register Vol. 35, No. 13, July 16, 2024
The deductions provided by Sections
				  7-9-46
				  through
				  7-9-78.1
				  and
				  7-9-83
				  through
				  7-9-90
				  NMSA 1978 apply only to those receipts which are included in and defined as
				  gross receipts pursuant to Section
				  7-9-3 NMSA
				  1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 203 - DEDUCTIONS › Section 3.2.203.11 - DEDUCTIONS OF GROSS RECEIPTS OF MARKETPLACE PROVIDERS AND MARKETPLACE SELLERS

Current through Register Vol. 35, No. 13, July 16, 2024
Under Section
				  7-9-3.5
				  NMSA 1978, marketplace sellers may have gross receipts from selling, leasing or
				  licensing property or selling services in the state and marketplace providers
				  may have receipts from receipts collected from selling, leasing, licensing
				  property or selling services. The deductions provided in the Gross Receipts and
				  Compensating Tax Act apply to the gross receipts of marketplace sellers and
				  marketplace providers to the extent that the sale, lease or licensing of
				  property or selling of services would be deductible.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
11/15/96, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.8 - MOTOR VEHICLE PARTS

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from the sale of parts, to be used in the repair of
				  used motor vehicles or other items of equipment which are held by the purchaser
				  of the parts for sale in the ordinary course of a used car or used equipment
				  business, or to be used to fulfill the dealer's warranty obligation on used
				  motor vehicles or other items of equipment, are deductible from the seller's
				  gross receipts provided the purchaser gives the seller a nontaxable transaction
				  certificate. The purchaser must use the parts in the nontaxable manner
				  indicated on the certificate or be liable for the compensating
				  tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.9 - PRINTING AND SILK-SCREENING

Current through Register Vol. 35, No. 13, July 16, 2024
A. Paper, ink, staples, glue, binding,
				chemicals, dyes and other tangible property used by a printer or a
				silk-screener in the production of a newspaper or other printed or
				silk-screened material for sale in the ordinary course of business are
				ingredients or component parts of a manufactured product. If all paper, ink,
				staples, glue, binding, chemicals, dyes and other tangible items are furnished
				to the printer or silk-screener by the customer as ingredients or component
				parts of the end product, then the printer or silk-screener is providing a
				service and not selling tangible personal property.
B. Example: N, a newspaper supply company,
				sells newsprint (paper), ink, offset plates, lithographic plates, linotype
				plates, lead plates, pre-cast type plates and photographic plates to
				newspapers. The newsprint and ink are ingredients or component parts because,
				when combined, they can be found in the product which is being manufactured.
				However, the various plates are not ingredients or component parts because they
				cannot be found in the manufactured product, the newspaper.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.11 - TRANSPORTATION EXPENSES

Current through Register Vol. 35, No. 13, July 16, 2024
Transportation expenses incurred in marketing a manufactured
				  product are not deductible pursuant to Section
				  7-9-46
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.12 - DENTAL SUPPLIES

Current through Register Vol. 35, No. 13, July 16, 2024
Gold, teeth and similar items used in making dentures for
				  sale in the ordinary course of business are ingredients or component parts of a
				  manufactured product.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.13 - PHOTOGRAPHIC SUPPLIES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Sensitized paper, backing paper, frames, mounts, glass and other items used by
				a photographer, photographic processor or developer in the production of a
				photograph for sale in the ordinary course of business are ingredients or
				component parts of a manufactured product.
B. Film used by a photographer is not an
				ingredient or component part of a finished photograph but it is consumed in the
				manufacturing of the photographs. Therefore, the sale of film to a photographer
				may be deducted pursuant to Subsection B of Section
				7-9-46
				NMSA 1978 as tangible personal property consumed in the manufacturing
				process.
C. This version of
				3.2.204.13 NMAC applies to transactions occurring on or after January 1,
				2013.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.14 - UPHOLSTERY MATERIALS

Current through Register Vol. 35, No. 13, July 16, 2024
Upholsterers are engaged in the business of performing a
				  service and are not manufacturers. If an upholsterer separately states on the
				  billings to customers the value of the material used in conjunction with the
				  services, the upholsterer may issue a Type 2 nontaxable transaction certificate
				  (NTTC) to the supplier of the material. If the value of the material is not
				  separately stated on the billings to customers and either an NTTC is executed
				  or the materials are purchased without a sales or gross receipts tax appearing
				  on the invoice from an out-of-state vendor, the upholsterer will be liable for
				  compensating tax on the value of the material.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.15 - SOFTWARE MATERIALS

Current through Register Vol. 35, No. 13, July 16, 2024
Materials such as blank diskettes, blank video disks,
				  packaging, paper and labels which are used by a person who manufactures and
				  sells in the ordinary course of business copies of computer software, together
				  with explanatory materials and instructions, are ingredient and component parts
				  of a manufactured product.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.16 - RECEIPTS FROM CUSTOM SOFTWARE DEVELOPED FOR MANUFACTURER OF PACKAGED SOFTWARE NOT DEDUCTIBLE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Receipts from developing custom software for a manufacturer of packaged
				software are not deductible under Section
				7-9-46
				NMSA 1978 because the deduction under Section
				7-9-46
				NMSA 1978 is available only for receipts from selling tangible personal
				property which is incorporated as an ingredient or component part of the
				manufactured product. Developing custom software is a service.
B. Example: M, a manufacturer of packaged
				software, contracts with S, a software development company, for the development
				of a new personal finances program which M plans to manufacture and sell. S is
				performing a service under this contract. M may not execute and S may not
				accept a nontaxable transaction certificate.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.17 - UNPROCESSED METAL ORES

Current through Register Vol. 35, No. 13, July 16, 2024
The receipts of a person who is not subject to the Resources
				  Excise Tax Act and who sells unprocessed metal ores to a processor in this
				  state are deductible under Section
				  7-9-46
				  NMSA 1978 provided the person is in possession of a properly executed
				  nontaxable transaction certificate of the appropriate type.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.18 - CAR WASHING AND DETAILING

Current through Register Vol. 35, No. 13, July 16, 2024
Persons who engage in the business of car washing, car waxing
				  or car detailing are not thereby in the business of manufacturing. The
				  deduction provided by Section
				  7-9-46
				  NMSA 1978 does not apply to receipts from car washing, car waxing or car
				  detailing.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS › Section 3.2.204.19 - TOOLS AND EQUIPMENT

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Tools and equipment used by a person engaged in the manufacturing business to
				manufacture a product are not considered to be consumed in the manufacturing
				process and therefore are not deductible under Subsection B of Section
				7-9-46
				NMSA 1978. As used in Section
				7-9-46
				NMSA 1978 the terms "tool" and "equipment" are defined as follows:
(1) "tool" means an implement, instrument,
				utensil, usually hand held, that is used to form, shape, fasten, add to, take
				away from, or otherwise change the manufactured product or equipment;
				and
(2) "equipment" means an
				essential machine, mechanism or tool, or a component or fitting thereof, used
				directly and exclusively in a manufacturing operation and subject to
				depreciation for purposes of the Internal Revenue Code by the taxpayer carrying
				on the manufacturing operation.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to all persons engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
11/15/96, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.8 - DELIVERY OF THE NONTAXABLE TRANSACTION CERTIFICATE

Current through Register Vol. 35, No. 13, July 16, 2024
A. In order for a taxpayer to qualify for the
				deduction provided in Section
				7-9-47
				NMSA 1978 the taxpayer must meet the requirements of Section
				7-9-47
				NMSA 1978, which include being the recipient of a nontaxable transaction
				certificate (nttc) of the type specified and furnished by the department to be
				delivered by a buyer who resells tangible personal property in the ordinary
				course of business. Other evidence in lieu of an appropriate nttc may be
				acceptable as provided in Section
				7-9-43
				NMSA 1978 and 3.2.201.10 NMAC.
B.
				Example: X, a retail grocer, buys $150 worth of brooms from Y. X, however, will
				not give Y a nttc. The sale from Y to X is a taxable transaction since X did
				not give Y a nttc. If X had presented the certificate, Y could have deducted
				the proceeds of the sale from Y's gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.9 - SALE ON INSTALLED BASIS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from selling tangible personal
				property to a person who resells that property on an installed basis are
				receipts derived from the sale of tangible personal property for resale even
				though material and services are not separately stated when the property is
				resold on an installed basis.
B.
				Example: C is in the carpeting and drapery business. When M came to see C about
				carpeting a bedroom, C quoted a price of $9.95 per square yard installed. The
				sale was completed and the carpet installed. Even though C did not separately
				state materials and services in the billing to M, C was correct in delivering a
				nontaxable transaction certificate to C's supplier because the sale from the
				supplier to C was in fact a sale of tangible personal property for
				resale.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.11 - SALE OF TANGIBLE PERSONAL PROPERTY TO A FEDERAL CONTRACTOR OR SUBCONTRACTOR

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from selling tangible personal
				property to a federal contractor or subcontractor may be deducted from the
				seller's gross receipts if the federal contractor or subcontractor issues a
				Type 15 nontaxable transaction certificate (nttc) to the seller. The federal
				contractor or subcontractor is authorized to issue a Type 15 nttc only if the
				federal contract number is entered on the appropriate line of the Type 15 nttc
				and all of the criteria contained in the agreement between New Mexico and the
				U.S. Government are met and if the contracting agency is one of the United
				States agencies signatory to the agreement.
B. If the federal contractor or subcontractor
				issuing the Type 15 nttc does not meet the criteria outlined in the agreement,
				it shall be liable for compensating tax on the value of the tangible personal
				property. A federal contractor or subcontractor may not issue a Type 15 nttc
				for the purchase of services.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.12 - CONSIGNMENT SALES

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts of a consignor from the sale of tangible personal
				  property handled on consignment, when the sale is made by the consignee, may be
				  deducted from gross receipts if the consignee delivers either a nontaxable
				  transaction certificate to the consignor pursuant to Section
				  7-9-47
				  NMSA 1978 or other proof acceptable to the department that the consignor's
				  tangible personal property was sold by consignment.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.14 - MEDICINES AND MEDICAL SUPPLIES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Dental supplies:
(1) The receipts from selling supplies, gold,
				silver and similar items of tangible personal property used in making dentures,
				cement used in fillings, amalgam, anesthetics, orthodontia platinum wire,
				facing, backing, x-ray film and the like to dentists for use in their practices
				are not receipts from selling tangible personal property for resale since it is
				not the custom of the dental profession to bill material separately from the
				services involved.
(2) The receipts
				derived from selling the items mentioned in Paragraph (1) of Subsection A of
				Section 3.2.205.14 NMAC may not be deducted from gross receipts pursuant to
				Section
				7-9-73
				NMSA 1978 because the items sold are not prosthetic devices within the meaning
				of Section
				7-9-73
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.15 - FOOD AND RELATED SUPPLIES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Sale of food:
Receipts from
				the sale of food to a person engaged in the business of operating a nursing
				home, day care facility, kindergarten or a facility for retired elderly persons
				may be deducted from gross receipts if the person delivers a nontaxable
				transaction certificate to the seller. The person engaged in the business of
				operating a nursing home, day care facility, kindergarten or a facility for
				retired elderly persons must resell the food either by itself or in combination
				with other tangible personal property in the ordinary course of business or be
				subject to the compensating tax for the value of the food.
B.
Sale of food to certain nonprofit
				organizations:
Receipts from selling food and beverages to a nonprofit
				organization which furnishes meals to persons who pay a boarding fee may be
				deducted from gross receipts if the buyer delivers a nontaxable transaction
				certificate to the seller pursuant to Section
				7-9-47
				NMSA 1978.
C.
Sale of animal
				food:
(1) Receipts from selling animal
				food, animal accessories and similar items of tangible personal property to a
				veterinarian who is engaged in the business of selling such items may be
				deducted from gross receipts if the buyer delivers a nontaxable transaction
				certificate (nttc) to the seller pursuant to Section
				7-9-47
				NMSA 1978.
(2) If the veterinarian
				delivering the nttc does not resell the items mentioned in Paragraph (1) of
				Subsection C of Section 3.2.205.15 NMAC in the ordinary course of business, the
				compensating tax is due.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.16 - VENDING MACHINES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Receipts from selling tangible personal property to the owner or lessee of
				vending machines, which property will be sold through the vending machines, may
				be deducted from gross receipts if the owner or lessee delivers a nontaxable
				transaction certificate (nttc) to the seller pursuant to Section
				7-9-47
				NMSA 1978.
B. If the owner or
				lessee delivering the nttc does not resell the tangible personal property in
				the ordinary course of business, the compensating tax is due.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.17 - SALE TO AN ELECTRIC COOPERATIVE ASSOCIATION

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from selling tangible personal
				property to an electric cooperative association which later sells the property
				to a person engaged in the construction business for incorporation into the
				construction project are receipts from selling tangible personal property for
				resale and may be deducted from gross receipts if the electric cooperative
				association delivers a nontaxable transaction certificate (nttc) to the seller
				pursuant to Section
				7-9-47
				NMSA 1978.
B. If the electric
				co-operative association delivering the nttc does not resell the tangible
				personal property in the ordinary course of business, the compensating tax is
				due.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.18 - PARTS AND SUPPLIES SOLD UNDER SERVICE CONTRACTS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Receipts from sale of parts to
				fulfill promisor's obligation under automotive service contract not
				deductible:
The receipts of a repair facility from the promisor under an
				automotive service contract, as that term is defined in Subsection C of Section
				3.2.1.16 NMAC, for furnishing parts to fulfill the promisor's obligation under
				the contract are taxable gross receipts of the repair facility. The receipts
				are not deductible by the repair facility even though the promisor may have
				furnished the repair facility with a Type 2 (property for resale) nontaxable
				transaction certificate since the parts were sold by the repair facility to the
				purchaser of the automotive service contract for a consideration to be received
				from the promisor who makes the payment to the repair facility to discharge the
				promisor's obligation to the purchaser to pay for the parts
B.
Supplies billed by automotive dealer
				on repair orders subject to compensating tax:
New Mexico automotive
				dealers who issue Type 2 (resale of tangibles) nontaxable transaction
				certificates to suppliers of shop supplies purchased for use in the dealers'
				service departments and body shops are liable for compensating tax on those
				supplies. Dealers are using and are not reselling (i.e., transferring) the shop
				supplies as required by Section
				7-9-47
				NMSA 1978 and are, therefore, liable for the compensating tax imposed by
				Paragraph (3) of Subsection A of Section
				7-9-7
				NMSA 1978. Separately stating a charge on the customer's billing for shop
				supplies used by a dealer does not constitute the resale of such
				supplies.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.19 - COMPUTER SOFTWARE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Packaged software - sale of tangible personal property versus sale of a
				license:
(1) When a person sells
				packaged software with restrictions such that the buyer may not transfer the
				software to another or may not permit another to use the software, the seller
				has receipts from the sale of a license.
(2) When a person sells packaged software
				without restrictions on the buyer's ability to transfer the property to another
				or to permit another to use the software, the seller has receipts from the sale
				of tangible personal property even if there may be restrictions on the number
				of simultaneous users or on the number of computers on which the software may
				be simultaneously installed.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.20 - USE OF TANGIBLE PERSONAL PROPERTY BY HOTELS, MOTELS AND SIMILAR FACILITIES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Hotels, motels, inns, rooming houses and similar facilities are engaged in the
				business of granting a license to use real and tangible personal property.
				Tangible personal property provided to a guest in conjunction with the license
				and intended to be consumed by the guest, such as soap, paper products and
				single serving packets of coffee, is resold in the ordinary course of
				business.
B.
Example
				1:
M, a motel, buys from Z bathroom tissue and single-serving coffee
				packets to use in M's motel business. M maintains that it is entitled to
				execute a Type 2 nontaxable transaction certificate (nttc) in purchasing the
				tangible personal property. M contends that, because the cost of the tangibles
				is included in the charge M sets for rooms, M is reselling the products in
				combination with the license to use the room. M is correct and may execute a
				Type 2 nttc to purchase these goods.
C.
Example 2:
H, a hotel,
				offers its guests at no additional charge a continental breakfast with the
				rental of rooms. H may execute a Type 2 nttc to purchase the food provided at
				these breakfasts and related non-food tangible personal property, such as paper
				napkins, provided in conjunction with the food.
D. Tangible personal property, such as sales
				slips, computer paper or forms, cleaning materials, vacuum cleaners and
				computers, to be used or consumed by the hotel, motel, inn or similar facility
				or its staff is not resold in the ordinary course of business. Tangible
				personal property provided by a hotel, motel, inn or similar facility for the
				use of guests, such as furniture, tableware, bedding and towels, but intended
				to be retained by the facility are not resold in the ordinary course of
				business. Tangible personal property not resold by itself or in conjunction
				with other tangible personal property or licenses is not deductible under
				Section
				7-9-47
				NMSA 1978. A Type 2 nttc may not be executed with respect to such tangible
				personal property.
E. This version
				of Section 3.2.205.20 NMAC is retroactively applicable to receipts from
				transactions on or after 11/1/97.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE › Section 3.2.205.21 - UTILITY SALES BY LANDLORD

Current through Register Vol. 35, No. 13, July 16, 2024
When the lessor of real property conveys water, natural gas
				  or electricity to a lessee as a condition of the lease of the real property,
				  the lessor is using the water, natural gas or electricity to fulfill the
				  conditions of the lease whether or not a separate charge is made to the lessee.
				  The lessor is not reselling the water, natural gas or electricity in the
				  ordinary course of business and may not execute a nontaxable transaction
				  certificate under Section
				  7-9-47
				  NMSA 1978 for the purchase of the water, natural gas or electricity. See
				  Subsection E of Section
				  3.2.211.8
				  NMAC.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 206 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF A SERVICE FOR RESALE › Section 3.2.206.1 - 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