reglab/statecodes huggingface dataset:
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 3.2.206.2 - 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 206 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF A SERVICE FOR RESALE › Section 3.2.206.3 - 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 206 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF A SERVICE FOR RESALE › Section 3.2.206.5 - 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 206 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF A SERVICE FOR RESALE › Section 3.2.206.6 - 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 206 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF A SERVICE FOR RESALE › Section 3.2.206.8 - RECEIPTS FROM THE NEXT SALE MUST BE TAXABLE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from selling a service for resale
				may be deducted by the seller under Section
				7-9-48
				NMSA 1978 if the buyer has delivered an appropriate nontaxable transaction
				certificate (nttc) to the seller. If the buyer giving the nttc does not resell
				the service in a transaction that is taxable, then that person is subject to
				the compensating tax on the value of the services at the time they were
				rendered.
B. Example 1: X brings a
				truck into Y for repair. The trailer hitch has broken off the truck. Since Y
				does not have a welder, Y takes the truck to Z, who welds the trailer hitch
				back on to the truck. Y has executed an nttc which it has previously given to
				Z. Y bills as follows:
Bumper welding (performed by Z)
$ 10.00
Service Charge
2.00
$ 12.00
Tax (at .05)
.60
TOTAL
$ 12.60
Under these circumstances Z may deduct the $10.00 gross
				  receipts that it derived from selling a welding service for resale because it
				  received an nttc.
C.
				Example 2: Y takes its service truck to Z to have Z weld a crane strut. Since Y
				has issued an nttc to Z, Z deducts its receipts from the performance of this
				service from its gross receipts. Y must pay compensating tax on the welding
				service performed by Z.
D. Example
				3: M, a seller of concrete beams, hires a carrier to transport the beams to a
				buyer, C, who is engaged in the construction business. C delivers an nttc to M
				pursuant to the deduction allowable for the sale of tangible personal property
				to persons engaged in the construction business. As the sale by M to C is not
				subject to the gross receipts tax, if M delivers an nttc to the carrier, M will
				be subject to the compensating tax on the value of the transportation service.
				It is immaterial that the seller separately states the value of the
				transportation service in the billing to C, the purchaser of the
				beam.
E. Example 4: E, a seller of
				paper, hired a common carrier to transport several reams of paper to the buyer,
				the United States government. As E is not subject to the gross receipts tax on
				this transaction, if E delivers an nttc to the carrier E will be subject to the
				compensating tax on the value of the transportation services. It is immaterial
				that the seller separately states the value of the transportation services in
				the billing to the United States government.
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 3.2.206.9 - SEPARATELY STATING BY ATTACHMENT TO PRINCIPAL BILLING

Current through Register Vol. 35, No. 13, July 16, 2024
For transactions occurring before July 1, 2000, the
				  requirement of separately stating the value of the service resold is satisfied
				  if an attachment to the principal billing is made showing the amount charged
				  for the service resold.
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 3.2.206.10 - INSTALLATION SERVICE

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Receipts from selling an installation service for resale may be deducted from
				gross receipts if the buyer of the service delivers a nontaxable transaction
				certificate (nttc) to the seller. The sale of the installation service by the
				buyer must be in the ordinary course of business and be subject to the gross
				receipts tax or the buyer will be subject to the compensating tax.
B.
Example:
W manufactures
				computers; however, because of the small size of the company W does not employ
				the proper personnel for installing the computers. Upon making a sale to S, W
				hired G to install the computers. The receipts G derived from installing the
				computers for W may be deducted from gross receipts pursuant to Section
				7-9-48
				NMAC 1978 if W delivers an nttc to G. The sale of the installation service by W
				must be in the ordinary course of business and subject to the gross receipts
				tax or W will be subject to the compensating tax. Note: If the installation
				service performed in a particular situation is determined by the department to
				be incidental to the sale of a tangible, then, even if the value of the
				installation service is separately stated from the value of the tangible
				personal property sold on the final billing to the buyer of the tangible
				personal property, all the receipts of the seller will be treated as receipts
				from the sale of tangible personal property.
C. This version of 3.2.206.10 NMAC applies to
				transactions occurring on or after July 1, 2000.
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 3.2.206.11 - CERTAIN SERVICES WHICH ARE USED AND NOT RESOLD

Current through Register Vol. 35, No. 13, July 16, 2024
Services performed in New Mexico which are deductible by the
				  buyer under the provisions of the Internal Revenue Code as ordinary and
				  necessary business expenses and services which are to be capitalized under the
				  provisions of the Internal Revenue Code are "used" for purposes of Subsection B
				  of Section
				  7-9-7
				  NMSA 1978 and are not purchased for resale pursuant to the provisions of
				  Section
				  7-9-48
				  NMSA 1978. If the buyer has issued a nontaxable transaction certificate for the
				  purchase of services which were in fact resold and subsequently obtains other
				  services which are used by the buyer, the buyer is liable pursuant to
				  Subsection B of Section
				  7-9-7
				  NMSA 1978 for compensating tax on the value of the services.
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 3.2.206.12 - NONCONSTRUCTION SERVICES SOLD TO CONSTRUCTION CONTRACTORS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Prior to January 1, 2013, any person
				engaged solely in the business of construction is not engaged in reselling
				services other than construction services in the ordinary course of business
				and may not execute a nontaxable transaction certificate (nttc) to purchase
				services for resale in connection with the construction business under the
				provisions of Section
				7-9-48
				NMSA 1978.
B. On or after January
				1, 2013, any person engaged in the construction business who purchases
				construction-related services as defined in Section
				7-9-52
				NMSA 1978 and is engaged in reselling those construction-related services may
				execute an nttc to support the deduction under Section
				7-9-52
				NMSA 1978.
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 3.2.206.13 - ADVERTISING AND BROADCAST SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Advertising service: radio and
				television stations.
The receipts of a radio or television broadcasting
				station from the sale of advertising services to an advertising agency for
				resale may be deducted from gross receipts if the advertising agency delivers a
				nontaxable transaction certificate (nttc) to the broadcasting station. The
				subsequent sale must be in the ordinary course of business and subject to the
				gross receipts tax or the advertising agency will be subject to the
				compensating tax on the value of the advertising service at the time it was
				rendered.
(1) If a radio or television
				broadcasting station sells advertising services to an advertising agency for
				resale but refuses to accept delivery of an nttc offered it by the advertising
				agency, the gross receipts tax consequences are:
(a) the net receipts of the broadcasting
				station from the transaction are subject to the gross receipts tax;
				and
(b) the receipts of the
				advertising agency, which are the full amount paid to the advertising agency by
				its customer (the advertiser), are subject to the gross receipts tax.
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 3.2.206.14 - TRANSPORTATION SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Transporting property.
Receipts of a carrier from transporting
				property for the seller of the property who prepays the transportation charges
				may be deducted from the carrier's gross receipts if the seller executes with
				the carrier a nontaxable transaction certificate. The sale of the
				transportation service and property must be in the ordinary course of the
				seller's business and subject to the gross receipts tax on its subsequent sale.
				Otherwise, the seller will be liable for compensating tax on such transaction.
				This version of Subsection A of Section 3.2.206.14 NMAC applies to transactions
				occurring on or after July 1, 2000.
B.
Transporting property.
(1) If a seller of tangible personal property
				employs a contract or common carrier to transport that property and delivers a
				nontaxable transaction certificate (nttc) to the carrier, and if the receipts
				from the sale of the property are not subject to the gross receipts tax, the
				seller will be subject to the compensating tax on the value of the
				transportation service purchased.
(2) Example: X sells tangible personal
				property to Y, a governmental entity, and hires a carrier to transport the
				tangible personal property to Y. X will be subject to compensating tax on the
				value of the transportation service if X delivers an nttc to the carrier. It is
				immaterial that X separately states the value of the transportation service in
				the billing to Y.
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 3.2.206.15 - MEDICAL SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Medical laboratory services.
Receipts from the sale of medical
				laboratory services, such as blood test analysis, urine analysis and similar
				test analysis, to a practitioner of the healing arts may be deducted from gross
				receipts if the practitioner delivers to the seller a nontaxable transaction
				certificate and the subsequent sale is in the ordinary course of the
				practitioner's business and is subject to the gross receipts tax. This version
				of Subsection A of Section 3.2.206.15 NMAC applies to transactions occurring on
				or after July 1, 2000.
B.
Anesthetists' services.
The receipts of an anesthetist from
				performance of service for a surgeon may be deducted from gross receipts if the
				surgeon resells the service to a patient and delivers a nontaxable transaction
				certificate (nttc) to the anesthetist. The surgeon delivering the nttc must
				separately state the value of the service purchased in the charge for the
				service on its subsequent sale, and the subsequent sale must be in the ordinary
				course of business and subject to the gross receipts tax. If these conditions
				are not satisfied, the surgeon will be subject to the compensating tax on the
				value of the service purchased.
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 3.2.206.16 - LINEN SERVICE FOR RESTAURANTS

Current through Register Vol. 35, No. 13, July 16, 2024
The receipts from charges to a restaurant for laundering
				  tablecloths, napkins, uniforms, towels and similar items may not be deducted
				  from gross receipts because these are not services performed for
				  resale.
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 3.2.206.17 - EQUIPMENT REPAIR SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from the sale of a repair service to a person
				  engaged in the business of repairing equipment may be deducted from gross
				  receipts if the buyer delivers a nontaxable transaction certificate (nttc) to
				  the seller. The subsequent sale must be in the ordinary course of business and
				  subject to the gross receipts tax or the buyer will be subject to the
				  compensating tax on the value of the service. This version of 3.2.206.17 NMAC
				  applies to transactions occurring on or after July 1, 2000.
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 3.2.206.18 - PHOTO PROCESSING SERVICE

Current through Register Vol. 35, No. 13, July 16, 2024
The receipts of a person engaged in the business of
				  processing photographic material, such as exposed film, are receipts from
				  performing a service and may be deducted from gross receipts if the sale of the
				  service is made to a buyer who delivers a nontaxable transaction certificate
				  (nttc). The subsequent sale must be in the ordinary course of business and be
				  subject to the gross receipts tax or the buyer will be liable for the
				  compensating tax on the value of the service. This version of 3.2.206.18 NMAC
				  applies to transactions occurring on or after July 1, 2000.
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 3.2.206.19 - MORTICIANS

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from selling services such as grave digging and
				  organ playing to morticians for use in their business are receipts from selling
				  a service for resale and may be deducted from gross receipts if the mortician
				  buying the service delivers a nontaxable transaction certificate (nttc) to the
				  seller. The subsequent sale must be in the ordinary course of the mortician's
				  business and subject to the gross receipts tax or the mortician will be liable
				  for the compensating tax on the value of the service. This version of
				  3.2.206.19 NMAC applies to transactions occurring on or after July 1,
				  2000.
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 3.2.206.21 - GARBAGE COLLECTION

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from selling the service of garbage collection for
				  resale may be deducted from gross receipts if the sale is made to a buyer who
				  delivers a type 5 nontaxable transaction certificate (nttc) to the seller. The
				  subsequent sale must be in the ordinary course of business and subject to the
				  gross receipts tax or governmental gross receipts tax, or the buyer will be
				  liable for the compensating tax on the value of the service at the time it was
				  rendered. If the seller of the service of garbage collection is a political
				  subdivision of the state of New Mexico, its receipts from the sale are exempted
				  from the gross receipts tax but will be subject to the governmental gross
				  receipts tax. This version of Section 3.2.206.21 NMAC applies to transactions
				  occurring on or after July 1, 2000.
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 3.2.206.22 - RECEIPTS FROM SALE OF SERVICES TO FULFILL PROMISOR'S OBLIGATION UNDER AUTOMOTIVE SERVICE CONTRACT NOT DEDUCTIBLE

Current through Register Vol. 35, No. 13, July 16, 2024
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 services to fulfill the promisor's obligation under the
				  contract are taxable gross receipts of the repair facility and are not
				  deductible by the repair facility. Even though the promisor may have furnished
				  the repair facility with a type 5 (service for resale) nontaxable transaction
				  certificate, the receipts are not deductible because the services 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 services.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 207 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.207.1 - 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 207 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.207.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 207 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.207.3 - 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 207 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.207.5 - 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 207 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.207.6 - 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 207 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.207.9 - AUTOMOBILE LEASING

Current through Register Vol. 35, No. 13, July 16, 2024
The receipts from selling tires, engine repair parts, and
				  similar items to a lessor who uses these items in the maintenance of vehicles
				  held for lease or leased may be deducted from gross receipts if the lessor
				  delivers a nontaxable transaction certificate to the seller. Unless the lessor
				  meets the following conditions the lessor will be subject to compensating tax
				  on the value of these items:
A. the
				parts are used by the lessor on vehicles held for lease, leased or held for
				sale and the receipts from leasing or selling vehicles are a substantial
				portion of the lessor's receipts; and
B. the maintenance of the vehicles is
				performed at no additional cost to the lessee of these vehicles under the lease
				agreement; and
C. the lessor does
				not use the vehicles or parts in any manner other than holding them for lease
				or sale or leasing or selling them either by themselves or in combination with
				other tangible personal property in the ordinary course of business.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 207 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR LEASING › Section 3.2.207.10 - SAFE HARBOR LEASE - PURCHASE OF AND/OR SALE OF PROPERTY BY SELLER/LESSEE

Current through Register Vol. 35, No. 13, July 16, 2024
A seller/lessee who enters into a qualified "safe harbor
				  lease" transaction as defined in Section 168 of the Internal Revenue Code and
				  who is in the business of selling or leasing the same type of property sold
				  under the "safe harbor lease" may issue and receive the nontaxable transaction
				  certificate authorized by Section
				  7-9-49
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 208 - DEDUCTION - GROSS RECEIPTS TAX - LEASE FOR SUBSEQUENT LEASE › Section 3.2.208.1 - 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 208 - DEDUCTION - GROSS RECEIPTS TAX - LEASE FOR SUBSEQUENT LEASE › Section 3.2.208.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 208 - DEDUCTION - GROSS RECEIPTS TAX - LEASE FOR SUBSEQUENT LEASE › Section 3.2.208.3 - 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 208 - DEDUCTION - GROSS RECEIPTS TAX - LEASE FOR SUBSEQUENT LEASE › Section 3.2.208.5 - 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 208 - DEDUCTION - GROSS RECEIPTS TAX - LEASE FOR SUBSEQUENT LEASE › Section 3.2.208.6 - 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 208 - DEDUCTION - GROSS RECEIPTS TAX - LEASE FOR SUBSEQUENT LEASE › Section 3.2.208.8 - GENERAL QUALIFICATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. To qualify to issue a nontaxable
				transaction certificate (nttc) under the provisions of Section
				7-9-50
				NMSA 1978, the business issuing the nttc must subsequently lease the tangible
				property in the ordinary course of business. If the seller accepts an nttc in
				good faith and if the tangible property is not subsequently leased in the
				ordinary course of business, the lessee will owe compensating tax on the total
				amount paid to the lessor under the terms of the lease.
B. Example: H manufactures fishing tools for
				use in the oil field. H leases these tools to J, a rental company, which in
				turn rents the tools to P, a drilling company. If J delivers a nontaxable
				transaction certificate to H, H may deduct the amount of its rental receipts
				from its gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 208 - DEDUCTION - GROSS RECEIPTS TAX - LEASE FOR SUBSEQUENT LEASE › Section 3.2.208.9 - LEASE VS. LICENSE TO USE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts of a person who is a lessor of
				tangible personal property from leasing tangible personal property to a lessee
				who grants a license to use the leased items of tangible personal property to a
				third party may not be deducted from gross receipts pursuant to Section
				7-9-50
				NMSA 1978. However, the deduction will be allowed if the lessor has accepted a
				nontaxable transaction certificate (nttc) from the buyer in good faith that the
				property would be used in a nontaxable manner.
B. If the lessee delivering the nttc does not
				use the property in a nontaxable manner, compensating tax is due.
C. Example 1: T leases television sets to X,
				a motel, to place in the rooms of its guests. X delivers an nttc to T pursuant
				to Section
				7-9-50
				NMSA 1978. X may not properly deliver an nttc pursuant to Section
				7-9-50
				NMSA 1978 because it is not subsequently leasing the television sets to its
				guests in the ordinary course of business; rather, it is granting its guests a
				license to use the television sets.
D. Example 2: X leases bowling equipment to a
				local bowling alley which in turn grants its customers a license to use that
				equipment. The local bowling alley may not deliver an nttc to X pursuant to
				Section
				7-9-50
				NMSA 1978 because the lease of the equipment is not for subsequent
				lease.
E. Example 3: X is in the
				business of selling and leasing golf carts. Y, a country club, leases a golf
				cart from X and permits golfers to use it for a consideration. X's receipts
				from leasing the golf cart may not be deducted from gross receipts pursuant to
				Section
				7-9-50
				NMSA 1978 because Y is not subsequently leasing the golf cart to golfers but is
				merely granting a license to use the golf cart.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 208 - DEDUCTION - GROSS RECEIPTS TAX - LEASE FOR SUBSEQUENT LEASE › Section 3.2.208.10 - EMPLOYER/EMPLOYEE VEHICLE LEASE AGREEMENT

Current through Register Vol. 35, No. 13, July 16, 2024
A. When an employee is the owner of a vehicle
				and enters into a lease agreement with an employer who pays the employee wages
				which are exempt from gross receipts tax under Section
				7-9-17
				NMSA 1978, the receipts derived from the lease of the vehicle to perform the
				transportation services are not deductible pursuant to Section
				7-9-50
				NMSA 1978.
B. Example: X, a bona
				fide employee of Y, a highway escort service, uses X's own vehicle and
				equipment to perform highway escort services for Y. X owes gross receipts tax
				on receipts from leasing the vehicles and equipment. Since X is a true employee
				of Y, X does not owe gross receipts tax on wages received from Y. If X were not
				a true employee of Y, X would owe gross receipts tax on the total amount
				received.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.1 - 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 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.5 - 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 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.6 - 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 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.7 - INGREDIENT OR COMPONENT PART DEFINED

Current through Register Vol. 35, No. 13, July 16, 2024
To be an "ingredient or component part" as used in Section
				  7-9-51
				  NMSA 1978 the tangible property must be an intended part of the finished
				  project. The finished project is the end product of
				  construction.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.8 - ITEMS THAT ARE NOT INGREDIENT OR COMPONENT PARTS - OIL FIELD

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from the sale of the following items may not be
				  deducted from gross receipts since these items do not become ingredient or
				  component parts of a construction project within the meaning of Section
				  7-9-51
				  NMSA 1978:
A. drilling equipment,
				including derricks, blocks, substructures, draw-works, flooring, rotary tables,
				engines, mud pumps, pipe racks, tanks, doghouses, hoses, water and fuel lines,
				water well equipment, blowout preventers and other drilling equipment and
				tools;
B. drill stems, drill
				collars, subs and kelly;
C.
				drilling bits, core bits and barrels;
D. fishing tools;
E. fuels, including natural gas, LPG, diesel
				and electricity; and
F. drilling
				fluids, including mud, additives, air and lost circulation materials.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.9 - ITEMS THAT ARE INGREDIENT OR COMPONENT PARTS - OIL FIELDS

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from the sale of casing, cement, shoes and float
				  equipment, casing heads and well heads may be deducted from gross receipts if
				  the other requirements of Section
				  7-9-51
				  NMSA 1978 are met and a nontaxable transaction certificate or alternative
				  evidence is provided by a well drilling company performing a turnkey project,
				  as these items become ingredient or component parts of the construction
				  project.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.10 - MATERIALS IN CONCRETE WORK

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from selling materials and
				special coating used in concrete work may be deducted from gross receipts if
				the materials sold become an ingredient or component part of a construction
				project and if the other requirements of Section
				7-9-51
				NMSA 1978 are met.
B. Concrete
				curing compounds, hardening agents and liquid curing compounds which remain on
				or in concrete become ingredient or component parts of construction projects
				within the meaning of Section
				7-9-51
				NMSA 1978.
C. Form coatings and
				form oils used to ease the separation of forms from concrete and snap ties,
				even though they remain imbedded in concrete, do not become ingredient or
				component parts of construction projects within the meaning of Section
				7-9-51
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.11 - SALE OF WATER

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from selling water to a construction company may be
				  deducted from gross receipts if the sale is made to a person engaged in the
				  construction business who delivers a nontaxable transaction certificate or
				  alternative evidence and if the water becomes an ingredient or component part
				  of the finished product such as in concrete or in moistening fill. However, if
				  the water is used as merely a lubricating agent, such as in well drilling, it
				  is not a component part of the finished product and the receipts are not
				  deductible.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.12 - FORMS AND FUEL

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Receipts from selling lumber for forms and fuel for trucks to a person engaged
				in the construction business may not be deducted from gross receipts because
				neither the lumber nor the fuel actually becomes an ingredient or component
				part of the finished product. However, if the form lumber is later used for
				sheeting in the construction project, the form lumber may be purchased with a
				nontaxable transaction certificate (nttc) or alternative evidence pursuant to
				Section
				7-9-51
				NMSA 1978.
B. The receipts from
				selling screed pins used in plastering and forms which must, by reason of
				design, be left in place after concrete has been poured over them may be
				deducted from gross receipts if the sale is made to a person engaged in the
				construction business who delivers a nontaxable transaction certificate (nttc)
				or alternative evidence.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.13 - WELDING RODS

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from selling welding electrodes (welding rods),
				  which melt to provide filler or fused metal, to a person engaged in the
				  construction business may be deducted from gross receipts if the buyer delivers
				  a nontaxable transaction certificate (nttc) or alternative evidence to the
				  seller and the buyer delivering the nttc uses the welding electrodes in such a
				  way that they become an ingredient or component part of the construction
				  project .
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.14 - PAINT AND PAINTING SUPPLIES

Current through Register Vol. 35, No. 13, July 16, 2024
A. The receipts from the sale of paint,
				filler, thinner, varnish or similar items to a person engaged in the painting
				business who delivers a nontaxable transaction certificate (nttc) or
				alternative evidence to the seller may be deducted from the seller's gross
				receipts.
B. Receipts from the sale
				of brushes, sandpaper, scrapers, sand for sandblasting, machinery and similar
				items used in the painting business to persons engaged in the painting business
				may not be deducted from gross receipts because such items do not become an
				ingredient or component part of the construction project.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.15 - SPRINKLER SYSTEMS

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from selling pipes, joints, nozzles and similar
				  items of tangible personal property which become ingredient or component parts
				  of a sprinkler system to a person engaged in the business of selling and
				  installing sprinkler systems may be deducted from gross receipts if the buyer
				  delivers a nontaxable transaction certificate or alternative
				  evidence.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.16 - BURNER FUEL

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from selling burner fuel used to heat aggregates and
				  asphalt to a person engaged in the construction business may not be deducted
				  from gross receipts since burner fuel does not become an ingredient or
				  component part of a construction project within the meaning of Section
				  7-9-51
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.17 - SURVEY SUPPLIES

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from selling survey supplies used to survey a
				  construction project to a person engaged in the construction business may not
				  be deducted from gross receipts because such survey supplies do not become an
				  ingredient or component part of the construction project within the meaning of
				  Section
				  7-9-51
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.18 - WINDOWS AND DOORS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Receipts from the sale of screens, screen doors and windows to a person engaged
				in the construction business may be deducted from the seller's gross receipts
				if the buyer delivers a nontaxable transaction certificate (nttc) or
				alternative.
B. Receipts from the
				sale of aluminum panel, aluminum T bar, aluminum angle, bulk or roll screen
				stock and jalousie glass to a person who produces screens, screen doors or
				windows and sells them installed in a construction project may be deducted from
				the seller's gross receipts pursuant to Section
				7-9-51
				NMSA 1978 if the buyer delivers an nttc or alternative evidence.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.19 - ELECTRICITY

Current through Register Vol. 35, No. 13, July 16, 2024
The receipts of an electric utility company from the sale of
				  electricity to a person engaged in the construction business may not be
				  deducted from the utility's gross receipts pursuant to Section
				  7-9-51
				  NMSA 1978 because electricity does not become an ingredient or component part
				  of the end product of the construction project.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.20 - BLUEPRINTS - PHOTOSTATS

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from the sale of blueprints or photostats to a
				  person engaged in the construction business are subject to the gross receipts
				  tax. These receipts may not be deducted pursuant to Section
				  7-9-51
				  NMSA 1978, because they do not become an ingredient or component part of a
				  construction project.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.21 - COMPENSATING TAX ON MATERIALS

Current through Register Vol. 35, No. 13, July 16, 2024
When a person engaged in the construction business leases or
				  otherwise uses a construction project which was built with construction
				  materials purchased with a nontaxable transaction certificate, the compensating
				  tax is due on the value of the construction materials incorporated into the
				  project. The value to be reported is the actual cost.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.22 - INGREDIENT AND COMPONENT PARTS OF A CONSTRUCTION PROJECT

Current through Register Vol. 35, No. 13, July 16, 2024
In determining whether tangible personal property will become
				  an ingredient or component part of a construction project, the department will
				  use the following criteria, but not exclusively:
A. Was the person performing the work using
				the tangible personal property required to be licensed under the Construction
				Industries Licensing Act, Sections
				60-13-1 to
				60-13-59
				NMSA 1978.
B. Did the work for
				which the tangible personal property was used require a permit from one or more
				of the trade boards established by the Construction Industries Licensing Act or
				from a municipal building or mechanical department.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.23 - CONSTRUCTION MATERIALS USED IN NONTAXABLE CONSTRUCTION PROJECTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A seller of
				construction material may not claim the deduction from gross receipts provided
				by Section
				7-9-51
				NMSA 1978, or accept a nontaxable transaction certificate (NTTC) in good faith
				as required by Section
				7-9-43
				NMSA 1978, when the seller can reasonably determine that the construction
				material sold will be incorporated into a construction project which will not
				be subject to gross receipts tax upon completion because it is located outside
				New Mexico.
B. A seller can
				reasonably determine that a project is located outside New Mexico when the
				seller has documents identifying the location of the project.
C. No construction project located outside
				New Mexico will be subject to gross receipts tax upon completion.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.24 - MATERIALS USED IN NONTAXABLE PROJECTS

Current through Register Vol. 35, No. 13, July 16, 2024
A person who purchases construction materials using a
				  nontaxable transaction certificate and who subsequently uses the construction
				  materials on a project located either outside the state of New Mexico or on a
				  project, other than a project sold to an Indian nation, tribe or pueblo or its
				  member that is located on the tribal territory of that Indian nation, tribe or
				  pueblo, not subject to the gross receipts tax upon completion shall be liable
				  for the compensating tax on the value of the materials used. This version of
				  3.2.209.24 NMAC applies retroactively to transactions occurring on or after
				  March 7, 2000.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.25 - CARPETS AND DRAPERIES INSTALLED IN A CONSTRUCTION PROJECT

Current through Register Vol. 35, No. 13, July 16, 2024
When carpets or draperies are to be installed as an
				  ingredient or component part of a construction project a person engaged in the
				  construction business may deliver a nontaxable transaction certificate for the
				  purchase of carpet or draperies, or the installation of carpets or draperies,
				  to the seller and the seller may deduct receipts from the sale pursuant to
				  Section
				  7-9-51
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 209 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.209.26 - MATERIALS USED IN GOVERNMENT OR NON-PROFIT PROJECTS

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from the sale to a person engaged in the
				  construction business who delivers a nontaxable transactions certificate or
				  alternative evidence to the seller of construction materials that are tangible
				  personal property, whether removable or non-removable, that is or would be
				  classified for depreciation purposes as three-year property, five-year
				  property, seven-year property or 10-year property by Section 168 of the
				  Internal Revenue Code of 1986 as that section may be amended or renumbered, may
				  be deducted if the construction material will ultimately be deductible pursuant
				  to Section
				  7-9-54
				  or
				  7-9-60
				  NMSA 1978 provided that the remaining construction services portion of the
				  project is subject to gross receipts tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.1 - 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 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.3 - 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 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.5 - 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 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.6 - 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.