reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
10/15/03, 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 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Oil and Gas Proceeds and
				  Pass-Through Entity Withholding Tax Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For the purposes of 3.3.5 NMAC:
A. "gross amount" includes amounts deducted
				by the remitter for expenses and severance taxes, but does not include amounts
				deducted for expenses or taxes prior to receipt by the remitter. If a taxpayer
				receives a Form 1099-MISC for its oil and gas proceeds, the gross amount is the
				amount reported on federal Form 1099-MISC in box 2, royalties, and in box 7,
				nonemployee compensation; and
B.
				"resident of New Mexico" means (1) an individual domiciled in this state during
				all of the taxable year, or (2) an individual other than an individual
				described in Subsection D of 3.3.1.9 NMAC who is physically present in this
				state for a total of one hundred eighty-five (185) days or more in the
				aggregate during the taxable year, regardless of domicile or (3) an individual
				who moves into this state with the intent to make New Mexico his permanent
				domicile.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.8 - EFFECTIVE DATE OF OIL AND GAS PROCEEDS WITHHOLDING REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
The withholding requirements imposed by Section
				  7-3A-3
				  NMSA 1978 apply to payments made on or after October 1, 2003, regardless of
				  production date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.9 - OIL AND GAS PROCEEDS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The following are not oil and gas proceeds for the purposes of the Oil and Gas
				Proceeds Withholding Tax Act and are not subject to the withholding tax imposed
				by that act, when payment is not offset against a share of future production:
				advance royalty payments, bonus payments, minimum royalty payments, shut-in
				payments and rental payments.
B. If
				the production is from a well subject to a unit or communitization agreement
				whose area crosses state boundaries, the amount attributable to "oil and gas
				production from any well located in New Mexico" may be derived through the
				allocation methodology set out in the agreement.
C. If the amount received by the remitter has
				had severance taxes or other expenses deducted prior to the time the remitter
				receives it, then the remitter shall be required to withhold only from the
				amount it received.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.10 - WITHHOLDING RATES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				For periods beginning on or after January 1, 2005 and before January 1, 2011,
				the rate of withholding shall equal the maximum bracket rate set by Section
				7-2-7
				NMSA 1978 for the taxable year.
B.
				For periods beginning on or after January 1, 2011, the rate of withholding
				pursuant to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax
				Act shall be set by directive of the secretary. The withholding rate set in the
				directive shall be effective no earlier than ninety (90) days after the date on
				which the directive is promulgated. The directive shall be posted on the
				taxation and revenue department's web site, along with past, current and, when
				the rate is announced to change at a future time, future withholding rates and
				the time periods to which they pertain.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.11 - WITHHOLDING MINIMUMS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				With respect to oil and gas proceeds, no withholding from a payment to a
				remittee is required if:
(1) the sum of all
				payments, including the subject payment, to that remittee by the remitter in
				the calendar quarter does not exceed thirty dollars ($30.00); and
(2) the amount to be withheld from the
				subject payment is less than ten dollars ($10.00).
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.12 - REMITTEES WITH A NEW MEXICO ADDRESS

Current through Register Vol. 35, No. 13, July 16, 2024
With respect to payments made for periods prior to January 1,
				  2011, a remitter is not obligated to deduct and withhold under the Oil and Gas
				  Proceeds Withholding Tax Act from payments to a remittee with a New Mexico
				  address. The relevant address for purposes of Section
				  7-3A-3
				  NMSA 1978 is the remittee address to which federal Form 1099-MISC is mailed or
				  otherwise transmitted, or the address that is shown on federal Form W-9 or
				  similar form. If federal law does not require the remitter to mail a federal
				  Form 1099-MISC to the remittee, and the remitter has not received a federal
				  Form W-9 or similar form, the relevant address is the address to which the oil
				  and gas proceeds are mailed or otherwise transmitted. This section does not
				  apply to payments for periods beginning on or after January 1, 2011. See
				  3.3.5.16
				  NMAC for equivalent provisions for withholding for periods beginning on or
				  after January 1, 2011.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.13 - PAYMENTS TO 501(C)(3) ORGANIZATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A remitter or pass-through entity is not obligated to deduct
				  and withhold under the Oil and Gas Proceeds and Pass-Through Entity Withholding
				  Tax Act from payments to a remittee or owner granted exemption from the federal
				  income tax by the United States commissioner of internal revenue as an
				  organization described in Section 501(c)(3) of the Internal Revenue Code.
				  Acceptable proof that a remittee or owner is a 501(c)(3) organization includes
				  a copy of the remittee's or owner's federal Form W-9, or a copy of the
				  determination letter from the internal revenue service granting the remittee or
				  owner 501(c)(3) status. This version of 3.3.5.13 NMAC applies to payments for
				  periods beginning on or after January 1, 2011.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.14 - REASONS FOR NOT WITHHOLDING

Current through Register Vol. 35, No. 13, July 16, 2024
The department will accept as reasons for not withholding,
				  the following:
A. written notification
				from a remittee that the payment is subject to further distribution by the
				remittee as a remitter to working interest owners, royalty interest owners,
				overriding royalty interest owners or production payment interest
				owners;
B. internal documentation
				such as signed division orders demonstrating that the payment is subject to
				further distribution by the remittee as a remitter to working interest owners,
				royalty interest owners, overriding royalty interest owners or production
				payment interest owners;
C.
				reliance on a New Mexico address, shown on internal revenue service Form
				1099-MISC, or a successor form, or on a
pro forma
1099-MISC,
				or a successor form, for those entities that do not receive an internal revenue
				service Form 1099-MISC, supplied by the remittee; the remitter may rely on a
				New Mexico address supplied by the remittee for up to thirty (30) days after
				receiving written notice from the remittee of a change in address to an address
				outside New Mexico;
D. receipt of a
				declaration signed under penalty of perjury, from the remittee or owner,
				stating that the individual is a resident of New Mexico or that the corporation
				maintains a principal place of business in New Mexico;
E. receipt of a written agreement from a
				remittee or owner under 3.3.5.17 NMAC that the remittee or owner will timely
				report and pay amounts required to be withheld and remitted;
F. inability to make payment of withholding
				from net income for the quarter due to nonavailability of cash or due to
				contracts and other binding written covenants with unrelated third parties,
				unless cash payments have been made to any owner during the quarter, in which
				case the pass through entity is liable for payment of the withholding amount
				due up to the extent of the cash payment made during the quarter;
G. with respect to tax years 2014 through
				2018, the pass-through entity has elected pursuant to
				26 USC
				108(i) to defer income from
				the discharge of indebtedness in connection with the reacquisition after
				December 31, 2008 and before January 1, 2011 of an applicable debt instrument
				for the period 2014 through 2018 and the entity has insufficient cash to remit
				the withholding amount due on the deferred income reported in the year;
				and
H. any other reason acceptable
				to the secretary, to be determined on a case-by-case basis.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.15 - STATEMENTS OF WITHHOLDING AND INFORMATION RETURNS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Each remitter shall:
(1) provide a federal Form 1099-MISC, or a
				successor form, or for those entities that do not receive an internal revenue
				service Form 1099-MISC, a
pro forma
1099-MISC, or a successor
				form, to each remittee on or before February 15 of the year following the year
				for which the statement is made, reflecting the proceeds paid to the remittee
				and the state tax withheld;
(2)
				provide a federal Form 1099-MISC, or a successor form, or for those entities
				that do not receive an internal revenue service Form 1099-MISC, a
pro
				forma
1099-MISC, or a successor form, to the department on or before
				the last day of February of the year following the year for which the statement
				is made; and
(3) provide to the
				department, a report listing the remittees to whom oil and gas proceeds were
				paid by the remitter, and for whom the remitter has received an agreement
				pursuant to Subsection G of Section
				7-3A-3
				NMSA 1978; this report must include:
(a) the
				name, address and federal identification number for each remittee;
(b) the gross oil and gas proceeds paid to
				the remittee during the tax year of the report; and
(c) the remitter's name, federal
				identification number and the total New Mexico gross oil and gas proceeds
				distributed by the remitter to all remittees.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.16 - PRINCIPAL PLACE OF BUSINESS OR RESIDENCE IN NEW MEXICO

Current through Register Vol. 35, No. 13, July 16, 2024
A. If a remitter or pass-through entity is
				not excused from the obligation to deduct and withhold from payments because of
				the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding
				Tax Act, the obligation to deduct and withhold remains in force until the
				remitter or owner establishes that the corporation's principal place of
				business or the individuals residence is in New Mexico except as provided in
				Subsection E of this section.
B.
				Once the corporation establishes that its place of business is in New Mexico or
				an individual establishes that his or her residence is in New Mexico, it does
				not matter where remittances to the corporation or individual are
				sent.
C. A remitter or pass-through
				entity may establish residency if the address provided by the remittee or
				owner, to which federal Form 1099-MISC,
pro forma
1099-MISC or
				successor form is to be mailed. A remitter or pass-through entity may also
				accept a declaration signed under penalty of perjury, from the remittee or
				owner, stating that the individual is a resident of New Mexico or that the
				corporation maintains a principal place of business in New Mexico.
D. The obligation to deduct and withhold
				applies with respect to all remittees and owners that are not corporations or
				individuals regardless of the remittee's or owner's physical or mailing
				address, effective January 1, 2011, unless the remitter or pass-through entity
				is party to an agreement in force with the remittee or owner pursuant to
				Subsection G of Section
				7-3A-3
				NMSA 1978.
E. This version of
				3.3.5.16 NMAC applies to payments for periods beginning on or after January 1,
				2011. However, to ease the transition to the new requirements of this section,
				remitters and pass-through entities may continue to rely on New Mexico
				addresses pursuant to 3.3.5.12 NMAC for withholding for calendar quarters
				ending prior to January 1, 2012.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.17 - OPTIONAL WITHHOLDING PAYMENT BY REMITTEE, OWNER

Current through Register Vol. 35, No. 13, July 16, 2024
A. A remitter may enter into an agreement
				with a remittee that the remittee will remit to the taxation and revenue
				department at the time and in the manner required by the department the amounts
				that the remitter is required to withhold and remit with respect to payments to
				the remittee. Similarly, a pass-through entity may enter into an agreement with
				an owner, except as provided in Subsection E of 3.3.5.17 NMAC, that the owner
				will remit to the department the amounts that the pass-through entity is
				required to withhold and remit with respect to payments to the owner.
B. The agreement must be in a form prescribed
				by the department or substantially equivalent to such form. It must be in the
				remitter's or pass-through entity's possession at the time it files its annual
				statement of withholding pursuant to Section
				7-3A-7
				NMSA 1978. The agreement may remain in effect for a single taxable year,
				multiple taxable years, or an indefinite term, and may be revoked or amended on
				mutual agreement of the parties.
C.
				Upon notice by the department that the remittee or owner has not complied with
				the requirements of the agreement, the remitter or pass-through entity must
				revoke the agreement and withhold and remit with respect to future payments to
				the remittee or owner pursuant to the Oil and Gas Proceeds and Pass-Through
				Entity Withholding Tax Act. Once an agreement has been revoked a new agreement
				between the remitter and remittee or between the pass-through entity and the
				owner, may not be entered into for two years from the date the department
				notifies the remitter or the pass-through entity of the remittee's or owner's
				failure to pay amounts required by the agreement.
D. Remittances to the department pursuant to
				an agreement by a remittee or owner that is subject to corporate income tax or
				personal income tax may be credited against the remittee's or owner's estimated
				tax liability pursuant to Section
				7-2A-9.1
				NMSA 1978 or Section
				7-2-12.2
				NMSA 1978 since the remittances relate to the remitter's or owner's own
				corporate income tax or personal income tax liability.
E. Pursuant to Subsections H and I of Section
				7-3A-3
				NMSA 1978 a pass-through entity that is a personal service business as defined
				in Subsection J of Section
				7-3A-2 NMSA 1978 may
				not enter into an agreement with its owners.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.18 - DISREGARDED ENTITIES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The term "pass-through entity," in addition to the exclusions listed in
				Subsection H of Section
				7-3A-2 NMSA 1978,
				also excludes entities treated as "disregarded entities" for federal income tax
				purposes. These include qualified subchapter S subsidiaries, as defined in
				26 USC Section
				1361(b)(3)(B), partnerships
				electing under
				26
				USC Section 761(a) to be
				treated as disregarded entities, qualified joint ventures, as defined in
				26
				USC Section 761(f), and
				qualified entities defined in internal revenue service revenue procedure
				2002-69.
B. When a business
				association is treated as a disregarded entity for federal income tax purposes
				for only part of the association's taxable year, the association is subject to
				the withholding and reporting requirements of the Oil and Gas Proceeds and
				Pass-Through Entity Tax Withholding Act for that portion of the taxable year in
				which it is not treated as a disregarded entity and must submit an annual
				statement of withholding pursuant to Section
				7-3A-7
				NMSA 1978 covering that portion its taxable year in which the association was
				not treated as a disregarded entity.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 5 - OIL AND GAS PROCEEDS WITHHOLDING › Section 3.3.5.19 - E-FILING REQUIREMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Annual income and withholding information returns, federal Form 1099-MISC,
pro forma
1099-MISC or successor forms must be filed with the
				department using a department-approved electronic medium if the remitter or
				pass-through entity has more than fifty (50) New Mexico payees in a tax year,
				unless the remitter or pass-through entity obtains an exception pursuant to
				Subsection C of 3.3.5.19 NMAC.
B.
				The annual income information report of oil and gas proceeds distributed - no
				tax withheld, and the annual income and withholding detail report of
				pass-through entity allocable net income must be filed using a
				department-approved electronic medium if the pass-through entity or remitter
				has more than fifty (50) New Mexico payees in a tax year, unless the remitter
				or pass-through entity obtains an exception pursuant to Subsection C of
				3.3.5.19 NMAC.
C. A taxpayer may
				request an exception to the requirement of electronic filing. The request must
				be in writing, addressed to the secretary of the taxation and revenue
				department and must be received by the department at least thirty (30) days
				before the taxpayer's electronic information return or report is due.
				Exceptions will be granted in writing and only upon a showing of hardship
				including that there is no reasonable access to the internet in taxpayer's
				community. The taxpayer must also show a good faith effort to comply with the
				electronic filing requirements before an exception will be considered. The
				request for an exception must include the information return or report to which
				the exception if granted will apply; a clear statement of the reasons for the
				exception; and the signature of the taxpayer.
D. If a remitter or pass-through entity is
				required by regulation or statute to file information returns or reports
				electronically, the information return or report shall not be considered filed
				until filed electronically if filed by any means other than as specified in
				that regulation or statute.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 7 - INDIVIDUAL INCOME TAX › Section 3.3.7.1 - 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 3 - PERSONAL INCOME TAXES › Part 7 - INDIVIDUAL INCOME TAX › Section 3.3.7.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each resident of New Mexico and to each
				  nonresident employed or engaged in the transaction of business in, into or from
				  New Mexico or deriving any income from any property or employment in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 7 - INDIVIDUAL INCOME TAX › Section 3.3.7.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1/15/97, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 7 - INDIVIDUAL INCOME TAX › Section 3.3.7.8 - PRORATION FOR FISCAL YEAR TAXPAYERS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A taxpayer whose taxable year ends on a
				date other than December 31 shall compute the tax on the tax taxable income for
				the entire fiscal year using both the old and the new rates. The final tax is
				the sum of that part of the old tax which is proportionate to that portion of
				the taxable year preceding the effective date of the new tax and that part of
				the new tax which is proportionate to that portion of the taxable year
				beginning with the effective date of the new tax rates.
B. Example 1: A taxpayer files a fiscal year
				return beginning October 1, 1982, and ending September 30, 1983. The tax
				taxable income for the entire fiscal year is $10,000. The taxpayer computes the
				tax due on the entire $10,000 based on the 1982 tax table and also computes the
				tax due on the entire $10,000 based on the 1983 tax table. As three months of
				the fiscal year were in 1982 and nine months were in 1983, the final tax is 1/4
				of the tax computed based on the 1982 tax table plus 3/4 of the tax computed
				based on the 1983 tax table.
C.
				Example 2: A taxpayer files a fiscal year return beginning July 1, 1982, and
				ending June 30, 1983. The taxable income for the entire fiscal year is $50,000.
				The taxpayer computes the tax due on the entire $50,000 based on the 1983 tax
				rate. As six months of the fiscal year were in 1982 and six months were in
				1983, the final tax is one half of the tax computed based on the 1982 tax table
				plus one half of the tax computed based on the 1983 tax table.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 7 - INDIVIDUAL INCOME TAX › Section 3.3.7.9 - TAX TABLES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				For taxable years beginning on or after January 1, 1983, any taxpayer who files
				a personal income tax return on a calendar-year basis will be required to use
				the tax tables which are incorporated into the department's instructions for
				the personal income tax form for the specific calendar year, provided that the
				taxpayer's taxable income and number of personal exemptions are included within
				the tax table.
B. Taxpayers whose
				number of personal exemptions or whose taxable income is not included
				specifically within the tax tables are required to calculate income tax due by
				using the tax rate schedule set forth in Section
				7-2-7
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 7 - INDIVIDUAL INCOME TAX › Section 3.3.7.10 - CHANGES IN TAX RATES

Current through Register Vol. 35, No. 13, July 16, 2024
In the event of a change in the tax rates, the instructions
				  prepared by the department for the personal income tax forms will incorporate
				  tax tables computed substantially on the basis of the rates prescribed in
				  Section
				  7-2-7
				  NMSA 1978 for the year or years affected.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each resident of New Mexico and to each
				  nonresident employed or engaged in the transaction of business in, into or from
				  New Mexico or deriving any income from any property or employment in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1/15/97, unless a later date is cited at the end of a
				  section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Income Tax Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.8 - COMPUTATION FOR NON-RESIDENT TAXPAYERS WHO HAVE NEW MEXICO ROYALTY INCOME

Current through Register Vol. 35, No. 13, July 16, 2024
A. A non-resident
				taxpayer whose only income from New Mexico sources is royalty income of less
				than five thousand dollars ($5,000) may elect to compute the New Mexico income
				tax due based on the gross royalty income received in lieu of filing a complete
				New Mexico tax return including the allocation and apportionment schedule. To
				figure taxable income, a taxpayer must add back the standard deduction,
				itemized deductions and personal exemption amounts excluded from net income
				under Section
				7-2-2 NMSA 1978,
				Subsection N, Paragraphs (1) through (6) for taxable years beginning in 1987,
				1988 or 1989 and Paragraphs (1) through (3) for taxable years beginning on or
				after January 1, 1990 to the gross royalty income and then, using the computed
				taxable income, must determine the tax due according to the tax table
				appropriate to filing status.
B. As
				originally filed, 3.3.11.8 NMAC applies to taxable years beginning on or after
				January 1, 1985. The amendment December 29, 1989 is given retroactive effect to
				taxable years beginning on or after January 1, 1987. The amendment filed March
				16, 1992 is given retroactive effect to taxable years beginning on or after
				January 1, 1990.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.9 - APPORTIONMENT OF DEDUCTION AMOUNTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Any individual who has income from both
				within and without this state and who claims the standard or itemized
				deductions provided by Section
				7-2-2 NMSA 1978,
				Subsection N, Paragraphs (1) through (5) for taxable years beginning in 1987,
				1988 or 1989 and Paragraphs (1) and (2) for taxable years beginning on or after
				January 1, 1990 shall apportion the deduction amount claimed in accordance with
				this section (3.3.11.9 NMAC).
B.
				For taxable years beginning in 1987, 1988 or 1989, apportionment shall be
				accomplished by reducing the amount deducted as non-New Mexico income by an
				amount equal to the product of the deduction amount multiplied by the
				percentage of non-New Mexico income computed on the individual's income tax
				return or any schedules or attachments thereto.
C. Example: A & B are married and file a
				joint return for taxable year 1988. For the purposes of
				7-2-2 N(5) NMSA 1978,
				they have $1,500 in New Mexico itemized deductions. Thirty percent of their
				income is calculated to be from outside New Mexico. They must reduce the amount
				of their deduction for non-New Mexico income by $1,650, computed as follows:
Deduction for married persons filing
							 jointly
$4,000
New Mexico itemized deductions
1,500
Sub-Total
$5,500
30% x $5,500
x .30
Adjustment to non-New Mexico income
$1,650
D.
				For taxable years beginning on or after January 1, 1990, apportionment is
				accomplished in the process of determining tax due and the amount of the credit
				available pursuant to Subsection C of Section
				7-2-11
				NMSA 1978 and so no separate process is necessary to apportion the deduction
				amounts.
E. This version of
				3.3.11.9 NMAC is applicable retroactively to taxable years beginning on or
				after January 1, 1990.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.10 - APPORTIONMENT OF PERSONAL EXEMPTION AMOUNT

Current through Register Vol. 35, No. 13, July 16, 2024
A. Any individual who has income from both
				within and without this state and who claims a personal exemption amount
				pursuant to Section
				7-2-2 NMSA 1978,
				Subsection N, Paragraph (6) for taxable years beginning in 1987, 1988 or 1989
				and Paragraph (3) for taxable years beginning on or after January 1, 1990 shall
				apportion the personal exemption amount claimed in accordance with this section
				(3.3.11.10 NMAC).
B. For taxable
				years beginning in 1987, 1988 or 1989, apportionment shall be accomplished by
				reducing the amount deducted as non-New Mexico income by an amount equal to the
				product of the personal exemption amount multiplied by the percentage of
				non-New Mexico income computed on the individual's income tax return or any
				schedules or attachments thereto.
C. Example: Z is a head of household with 2
				dependent children. Twenty percent of Z's income for taxable year 1989 comes
				from outside New Mexico. Z must reduce the amount of deduction for non-New
				Mexico income by $1,200, computed as follows:
Personal exemption amount per
							 7-2-2 N(6) NMSA
							 1978
$2,000
Exemptions allowed for federal
							 purposes
x 3
Sub-Total
$6,000
20% x $6,000
x .20
Adjustment to non-New Mexico income
$1,200
D.
				For taxable years beginning on or after January 1, 1990, apportionment is
				accomplished in the process of determining tax due and the amount of the credit
				available pursuant to Subsection C of Section
				7-2-11
				NMSA 1978 and so no separate process is necessary to apportion the deduction
				amounts.
E. This version of Section
				3.3.11.10 NMAC is applicable retroactively to taxable years beginning on or
				after January 1, 1990.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.11 - ALLOCATION OF COMPENSATION RECEIVED BY A RESIDENT

Current through Register Vol. 35, No. 13, July 16, 2024
A. All compensation received while a resident
				of New Mexico shall be allocated to this state whether or not such compensation
				is earned from employment in this state.
B. Example 1: X is a "resident" of New Mexico
				pursuant to Section
				7-2-2 NMSA 1978. For
				six weeks during the taxable year, X was employed in the state of Nevada where
				X received compensation for personal services rendered. During this six-week
				period, X did not return to the state of New Mexico. X points out that inasmuch
				as Nevada does not impose an income tax, X is not eligible for a tax credit
				pursuant to Section
				7-2-13
				NMSA 1978. X's compensation earned in Nevada is allocable to New Mexico. There
				is no specific exemption or deduction which would authorize X to exclude the
				compensation earned in Nevada from the New Mexico base income.
C. Example 2: Y is registered to vote in this
				state, lives in the Canal Zone, is not physically present in New Mexico for any
				part of the taxable year and earns income from sources both within and without
				the state of New Mexico. Y is a "resident" as that term is defined by Section
				7-2-2 NMSA 1978, and
				is required to report and pay New Mexico income tax as a resident of New
				Mexico. Under the provisions of Section
				7-2-11
				NMSA 1978, Y is required to allocate all compensation earned to New Mexico and
				to allocate and apportion other items of income according to the provisions of
				the Uniform Division of Income for Tax Purposes Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.12 - DISTRIBUTIVE SHARES OF INCOME FROM UNINCORPORATED BUSINESS ENTITIES

Current through Register Vol. 35, No. 13, July 16, 2024
A. For the purposes
				of this section (3.3.11.12 NMAC), the term "unincorporated business entity"
				means any person engaging in business other than an individual, a sole
				proprietor or a corporation, except that corporations or other business
				entities electing to be treated as partnerships for federal income tax purposes
				are unincorporated business entities.
B. A taxpayer's distributive share of
				nonbusiness and business income shall be allocated and apportioned in
				accordance with this section (3.3.11.12 NMAC) to determine the portion of the
				distributive share of income taxable under the New Mexico Income Tax Act unless
				the taxpayer is qualified to elect, and has elected, to report the income in
				accordance with 3.3.11.8 NMAC.
C.
				The taxpayer shall allocate the taxpayer's distributive share of the
				unincorporated business entity's nonbusiness income to that taxpayer's state of
				residence in accordance with Sections
				7-4-5
				through
				7-4-8
				NMSA1978. If the unincorporated business entity fails to provide the taxpayer
				with information distinguishing nonbusiness income from business income, the
				entire distribution from the unincorporated business entity must be considered
				business income and none of the income will be subject to allocation.
D. The taxpayer shall apportion the
				taxpayer's distributive share of the unincorporated business entity's business
				income to New Mexico by multiplying the taxpayer's distributive share times the
				New Mexico apportionment percentage determined by application of the Uniform
				Division of Income for Tax Purposes Act to the entire business income of the
				unincorporated business entity. If the unincorporated business entity fails to
				provide the taxpayer with the necessary New Mexico apportionment percentage or
				information sufficient to enable the taxpayer to calculate the percentage, the
				taxpayer shall apportion the taxpayer's entire distributive share of business
				income as if all of the entity's activities, property, payroll and sales were
				in New Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.13 - RETIREMENT INCOME

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				"Retirement income" as used in this regulation means "retirement income" as
				defined by
				4
				U.S.C. Section 114(b)(1), as
				that paragraph may be amended or renumbered. Retirement income is compensation
				for purposes of the Income Tax Act.
B. Retirement income of a resident is
				allocable to New Mexico, regardless of the source of the retirement income,
				where it is paid from or whether the resident was a resident of New Mexico at
				the time of the employment which gave rise to the income. Retirement income
				received by a first-year resident after the first-year resident becomes a
				resident of New Mexico is allocable to New Mexico.
C. Retirement income of a non-resident is
				allocable to the non-resident's state of residence regardless of the fact that
				the income is paid by or derived from a source in New Mexico or the employment
				giving rise to the income took place in New Mexico. Retirement income received
				by a first-year resident before the first-year resident becomes a resident of
				New Mexico is not allocable to New Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 11 - TAX CREDIT - INCOME ALLOCATION AND APPORTIONMENT › Section 3.3.11.14 - INCOME FROM TRADING SECURITIES ON OWN ACCOUNT

Current through Register Vol. 35, No. 13, July 16, 2024
A. Income of an individual, other than a
				dealer holding securities for sale to customers in the ordinary course of the
				dealer's trade or business, from the purchase or sale of securities for the
				individual's own account or from the writing of securities option contracts for
				the individual's own account is deemed to be income other than income from
				engaging in a trade or business. The income is allocable to the individual's
				state of residence.
B. Income of an
				investment entity from the purchase or sale of securities for the entity's own
				account or from the writing of securities option contracts in the entity's own
				account is deemed to be income other than income from engaging in a trade or
				business. The income attributable to each of the entity's owners is allocable
				to that owner's state of residence.
C. For the purposes of this regulation, the
				term "investment entity" means a pass-through entity, as that term is defined
				in Section
				7-3-2 NMSA 1978,
				meeting the following criteria:
(1) the
				entity is not a dealer holding securities for sale to customers in the ordinary
				course of the entity's trade or business;
(2) each of the entity's owners during the
				taxable year is an individual; and
(3) ninety percent or more of the entity's
				income during the taxable year derives from the purchase or sales of securities
				or from writing of securities option contracts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 12 - TAXPAYER RETURNS - PAYMENT OF TAX › Section 3.3.12.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1150 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  97504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 12 - TAXPAYER RETURNS - PAYMENT OF TAX › Section 3.3.12.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
All persons filing or required to file a New Mexico income
				  tax return and all tax return preparers and persons printing New Mexico income
				  tax forms.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 12 - TAXPAYER RETURNS - PAYMENT OF TAX › Section 3.3.12.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
1/31/96, 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 3 - PERSONAL INCOME TAXES › Part 12 - TAXPAYER RETURNS - PAYMENT OF TAX › Section 3.3.12.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Income Tax Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 12 - TAXPAYER RETURNS - PAYMENT OF TAX › Section 3.3.12.9 - REQUIREMENTS FOR THE PREPARATION OF ACCEPTABLE REPRODUCTIONS OF NEW MEXICO INCOME TAX FORMS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The purpose of this regulation is to state the requirements for the acceptance
				of reproduced or privately printed New Mexico individual income tax return
				forms (i.e., PIT-1, PIT-B, PIT-CG, PIT-D, PIT-RC and other related schedules).
				Subject to the specifications and conditions enumerated in this regulation, the
				department will accept for filing reproduced or privately printed New Mexico
				individual income tax return forms.
B. Specifications.
(1) Reproduced or privately printed New
				Mexico individual income tax forms and related schedules shall be identical to
				the forms and schedules furnished by the department. The format must be exact;
				target marks and bar codes must be included. These conditions are critical
				because the department uses imaging technology for data capture which requires
				definition of placement for each data field, and uses target marks to make sure
				forms are properly aligned for imaging. If the form or schedule furnished by
				the department is printed on both sides of the paper, it is preferred that both
				sides of the paper be used in making reproductions. However, the department
				will not object if the form is not printed back-to-back, provided page 2
				face-to-back of page 1 is printed so the form will be readable left to right
				without flipping top to bottom (head-to-head).
(2) All reproduced or privately printed tax
				forms must include space for the preparer's signature (other than taxpayer) and
				the preparer's taxation and revenue department identification number or social
				security number.
(3) Drop-out
				colors may not be possible when using some PC applications, or when using
				templates. Because drop-out colors do facilitate the data capture process,
				increasing both speed and accuracy, the department strongly recommends, but
				does not require their use in reproduced or privately printed forms. Vendors
				wishing to include a drop-out color should contact the department for color
				specifications.
(4) Reproduced or
				privately printed tax forms, except for Form PIT-P, must be on 8-1/2" by 11"
				good quality standard stock machine stationery not less than 0.0030 inch thick
				(20 lb. paper). All printing shall be black ink on white paper. Form PIT-P must
				meet these same standards except that the size of the form is 8-1/2" by
				3-3/4".
(5) Reproduced or privately
				printed tax forms shall have a high standard of legibility. The department will
				reject any substitutes which are not legible for microfilm purposes.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 12 - TAXPAYER RETURNS - PAYMENT OF TAX › Section 3.3.12.10 - REQUIREMENTS FOR THE ACCEPTANCE OF COMPUTER-GENERATED INCOME TAX FORMS AND RELATED SCHEDULES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The purpose of this regulation is to state the requirements for the acceptance
				of computer-generated New Mexico individual income tax return forms (i.e.,
				PIT-1, PIT-B, PIT-CG, PIT-D, PIT-RC and other related schedules). Subject to
				the specifications and conditions enumerated in this regulation, the department
				will accept for filing computer-prepared New Mexico individual income tax
				return forms.
B. Specifications.
(1) Margins on computer generated forms shall
				be consistent with margins on forms furnished by the department. A full scale
				definition may be obtained from the department.
(2) All computer generated tax forms must
				include space for the preparer's signature (other than taxpayer) and the
				preparer's taxation and revenue department identification or social security
				number.
(3) Drop-out colors are not
				required on computer-generated forms. Persons wishing to include a drop-out
				color should contact the department for color specifications.
(4) Computer-generated tax forms must be on 8
				1/2" by 11" good quality standard stock machine stationery not less than 0.0030
				inch thick (20 lb. paper). The image size of printed material shall be as close
				as possible to that of the official form.
(5) The format must be exact; target marks
				and bar codes must be included. These conditions are critical because the
				department uses imaging technology for data capture which requires definition
				of placement for each data field, and uses target marks to make sure forms are
				properly aligned for imaging.
(6)
				Line instructions may be omitted, but all line numbers and items shall be
				printed even though the amount entered may be zero.
(7) All computer-generated forms shall be
				printed back-to-back or page 2 face-to-back of page 1 so the form will be
				readable left to right without flipping top to bottom (head-to-head).
(8) Computer-generated forms shall have a
				high standard of legibility. The department will reject any substitutes which
				are not legible for microfilm purposes.
(9) An asterisk (*) or other accepted symbol
				shall appear on the computer-generated form to designate those lines which are
				identified on the official form through the use of a solid triangle.
(10) The computer generated form must provide
				the necessary number of "For Department Use Only" squares on the right margin.
				The specific number of "For Department Use Only" boxes, and their placement,
				for any taxable year may be obtained by contacting the department.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 12 - TAXPAYER RETURNS - PAYMENT OF TAX › Section 3.3.12.11 - FILING OF TENTATIVE INCOME TAX RETURNS NOT ALLOWED

Current through Register Vol. 35, No. 13, July 16, 2024
The filing of a "tentative" return is not allowed by
				  taxpayers filing New Mexico income tax returns within the meaning of Section
				  7-2-12
				  NMSA 1978. Taxpayers wishing to make a prepayment of their tentative or
				  estimated tax liability prior to the due date of the return should use a
				  prepayment form PIT-P. The instructions on the form PIT-P should be followed
				  carefully to ensure that any prepayment is applied to the correct taxable year.
				  This regulation is applicable to taxable years beginning on or after January 1,
				  1995.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 3 - PERSONAL INCOME TAXES › Part 12 - TAXPAYER RETURNS - PAYMENT OF TAX › Section 3.3.12.12 - FILING STATUS; TAXPAYER NAME

Current through Register Vol. 35, No. 13, July 16, 2024
A. A taxpayer filing a New Mexico income tax
				return shall use the same filing status for New Mexico purposes as for federal
				purposes for the taxable year. Spouses using the status "married filing
				jointly" for federal purposes must use the same status for New Mexico purposes;
				those using the status "married filing separately" for federal purposes must do
				likewise for New Mexico.
B. Spouses
				who report income to the federal government for income tax purposes using
				different last names, whether they report jointly or separately, must report
				their income to New Mexico using the same names as used on the federal return.
				Spouses who report to the United States under one surname must also report to
				New Mexico under the same surname.