reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
October 13, 2021, unless a later date is cited at the end of
				  a section, in which case the later date is the effective date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.8 - CITATION OF REGULATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
Unless otherwise stated, all citations of statutes in Chapter
				  3.2 NMAC with respect to the Gross Receipts and Compensating Tax Act are to the
				  New Mexico Statutes Annotated, 1978 (NMSA 1978).
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.11 - CONSTRUCTION

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Construction service as distinguished from other services.
(1) The term "construction" is limited to the
				activities, or management of the activities, which are listed in Section
				7-9-3.4
				NMSA 1978 and which physically change the land or physically create, change or
				demolish a building, structure or other facility as part of a construction
				project.
(2) "Construction" does
				not include services that do not physically change the land or physically
				create, change or demolish a building, structure or other facility as part of a
				construction project, even though they may be related to a construction
				project. The fact that a service may be a necessary prerequisite or ancillary
				to construction or a construction project does not in itself make the service a
				construction service. Excluded from the meaning of "construction" are
				activities such as, but not limited to: hauling to or from the construction
				site, maintenance work, landscape upkeep, the repair of equipment or
				appliances, laboratory work or accounting, architectural, engineering,
				surveying, traffic safety or legal services. Some of these activities may
				qualify as construction-related services; see Section
				7-9-52
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.12 - ENGAGING IN BUSINESS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Engaging in business :
(1) Generally: For periods beginning July 1, 2020, "engaging in business" conforms to the constitutional requirement for substantial nexus under
South Dakota v. Wayfair
, 585 U.S. ___(2018). A person that has physical presence in the state and is also conducting activity with the purpose of direct or indirect benefit is engaging in business and subject to the imposition of gross receipts tax. A person that does not have physical presence in the state is nevertheless engaging in business and has substantial nexus in New Mexico if, in the preceding calendar year, that person has total taxable gross receipts from sales, leases and licenses of tangible personal property, sales of licenses and sales of services and licenses for use of real property sourced to this state pursuant to Section  7-1-14 NMSA 1978, of at least one hundred thousand dollars ($100,000).
(2) A person who is required to register with the department for the purposes of the gross receipts tax may close its gross receipts tax account following any calendar year in which it no longer meets the requirements for engaging in business set out in Section  7-9-3.3 NMSA 1978. For example, a person who does not currently have physical presence in New Mexico and who did not have total taxable gross receipts from sales, leases and licenses of tangible personal property, sales of licenses and sales of services and licenses for use of real property sourced to this state pursuant to Section  7-1-14 NMSA 1978 of at least $100,000, may close its gross receipts tax account for the 20XX calendar year. In order to close its registration and its future filing obligations, such person must submit its request to close its registration and specify the closure date on a form prescribed by the department. The person's duty to register will resume in any calendar year in which it meets the requirements of Section  7-9-3.3 NMSA 1978.
(3) A person who has not registered or been otherwise identified is nonetheless a "taxpayer" subject to the provisions of the Tax Administration Act, 3.1.1.13 NMAC.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.15 - GROSS RECEIPTS; TANGIBLE PERSONAL PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Lease purchase agreement as a
				sale:
The receipts from a two party "lease-purchase" or "paid-out lease"
				agreement for tangible personal property will be treated as receipts from the
				sale of tangible personal property under the Gross Receipts and Compensating
				Tax Act if the lessee-buyer treats the property as an asset and depreciates the
				property pursuant to generally accepted accounting practices.
B.
Consignment sales:
Receipts
				of both a consignor and a consignee from the sale of tangible personal property
				handled on consignment are subject to the gross receipts tax.
C.
Delivery expenses:
(1) Receipts from charges by a seller of
				tangible personal property for delivery costs, including postage and
				transportation charges, paid by the seller and passed on to the buyer, are an
				element of the sales price of the property.
(2)
Example:
X sells
				tangible personal property in the state of New Mexico and transports property
				to buyers located in New Mexico in its own equipment from its factory and
				warehouse. In some instances the contracts of sale which X has with its buyers
				stipulate that title passes on completion of manufacturing; in other cases
				there is no stipulation regarding passage of title. On its billing to buyers, X
				separately states amounts categorized as "warehouse charges" and "delivery
				charges". These separately stated charges are elements of the sale price of the
				property.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.16 - GROSS RECEIPTS - REAL ESTATE AND INTANGIBLE PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Insurance proceeds:
(1) Receipts of an insured derived from
				payments made by an insurer pursuant to an insurance policy are not subject to
				the gross receipts tax. Such receipts are not receipts derived from the sale of
				property in New Mexico, the leasing of property employed in New Mexico, or the
				performance of a service.
(2)
				Example: ABC is an auto dealer in the business of selling new and used cars. In
				addition to selling cars, ABC also maintains a service garage with a large
				inventory of automobile parts. As part of its regular sales practice, ABC
				allows potential purchasers to test drive the cars. ABC carries automobile
				insurance which is applicable in the situation where the potential purchaser is
				test driving the car. When an accident occurs, even though some or all the
				parts used to repair the automobile are taken from ABC's inventory of parts and
				ABC does the actual repair work, payment received from the insurance company
				for the damaged automobile is not gross receipts. Such a payment is not
				received as consideration for selling property in New Mexico, leasing property
				employed in New Mexico, or for performing services. ABC is not liable for
				compensating tax on the value of the parts used or the labor.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.17 - GROSS RECEIPTS - LEASING

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Leasing of property employed in New
				Mexico
:
(1) Receipts derived from the
				rental or leasing of property employed in New Mexico are subject to the gross
				receipts tax.
(2)
Example
				1
: A is in the business of leasing heavy equipment used in
				construction projects. The receipts from the leasing of such equipment employed
				in New Mexico prior to January 1, 2013, are subject to the gross receipts tax.
				See Section
				7-9-52.1
				NMSA 1978 for deductibility of receipts from such leases on or after January 1,
				2013.
(3)
Example
				2
: Y, a New York corporation, leases four block-making machines to X
				who uses the machines in X's block making business in New Mexico. The rental
				contract is signed in Nebraska. The receipts which Y receives from the rental
				of the equipment employed in New Mexico are taxable.
(4)
Example 3
: P corporation
				leases photocopying machines to Q, a state agency. The receipts of P
				corporation from leasing these machines to the state agency are subject to the
				gross receipts tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.18 - GROSS RECEIPTS: SERVICES GENERALLY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from performing a service in New
				Mexico or performing a service outside New Mexico the product of which is
				initially used in New Mexico. Receipts derived from performing a service in New
				Mexico or performing a service outside New Mexico the product of which is
				initially used in New Mexico are subject to the gross receipts tax unless a
				specific exemption or deduction provided for in the Gross Receipts and
				Compensating Tax Act applies.
B.
				Sales of state licenses by nongovernmental entities:
(1) Amounts retained by nongovernmental
				entities as compensation for services performed in selling state licenses are
				gross receipts.
(2) Example: G owns
				and operates a small grocery store in rural New Mexico which is located near a
				popular fishing area. As a convenience to the public, G sells New Mexico Game
				and Fish licenses. For its services in selling these licenses, G retains a
				small percentage of the total license fee. The amounts retained are gross
				receipts because they are receipts derived from services performed in New
				Mexico. G may not deduct the amounts retained pursuant to Section
				7-9-66
				NMSA 1978 which deals with commissions derived from the sale of tangible
				personal property not subject to the gross receipts tax. A New Mexico game and
				fish license is not tangible personal property pursuant to Subsection J of
				Section
				7-9-3
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.19 - GROSS RECEIPTS; RECEIPTS OF AGENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Nonemployee agents:
(1) The receipts of nonemployee agents are
				subject to the gross receipts tax to the extent the education provided by
				Section
				7-9-66
				NMSA 1978 is not applicable. The indicia outlined in
				3.2.105.7
				NMAC will be considered in determining whether a person is an employee or a
				nonemployee agent.
(2)
Example 1:
S is a nonemployee salesperson for Z Corporation,
				an out-of-state business. Z Corporation arranges for S to sell securities
				belonging to corporation shareholders. Z accepts payment from the purchasers of
				the security, deposits this payment in a trust account, pays S the commission
				and then distributes the balance to the seller of the securities. Z does not
				incur gross receipts tax liability as the result of its activity because it is
				not selling property or performing services in New Mexico for a consideration.
				The commissions received by S for selling securities in New Mexico are receipts
				for performing services in New Mexico and are subject to the gross receipts
				tax.
(3)
Example
				2:
The receipts of a nonemployee agent or sub-agent derived from
				commissions received from;
(a) correspondence
				schools for enrolling persons in those schools;
(b) freight companies, bus transportation
				firms, and similar business concerns for rendering services; and
(c) the owner of trailers or trucks for
				leasing those trailers or trucks, are subject to gross receipts tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.20 - Gross Receipts of Marketplace Providers and Marketplace Sellers

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Gross
				Receipts of Marketplace Providers:
Under Section
				7-9-3.5
				NMSA 1978, the receipts of marketplace providers are defined to include
				receipts collected by a marketplace provider engaging in business in the state
				from sales, leases and licenses of tangible personal property, sales of
				licenses and sales of services or licenses for use of real property that are
				sourced to this state and are facilitated by the marketplace provider on behalf
				of marketplace sellers, regardless of whether the marketplace sellers are
				engaging in business in the state. As used here, the term "collected by a
				marketplace provider" means amounts paid by the customer directly to the
				marketplace provider or indirectly through third parties, where the marketplace
				provider either retains the receipts or transmits all or part of the receipts
				to the marketplace seller, regardless of whether the marketplace provider
				retains any portion of the gross receipts as consideration in exchange for the
				marketplace provider's services. The receipts of the marketplace provider,
				therefore, include all gross receipts collected from the customer for the
				sales, leases and licenses, regardless of whether any amount is paid over to
				the marketplace seller. The gross receipts collected by the marketplace
				provider are treated as receipts of that marketplace provider from sales,
				leases and licenses for purposes of the Gross Receipts and Compensating Tax
				Act, including exemptions and deductions, as though the marketplace provider
				had gross receipts from selling, leasing or licensing.
B.
Gross Receipts of Marketplace
				Sellers:
Under Section
				7-9-3.5
				NMSA 1978, a marketplace seller that sells, licenses or leases through a
				marketplace provider to customers in New Mexico has gross receipts in New
				Mexico from selling, licensing or leasing under Section
				7-9-3.5
				NMSA 1978. A marketplace seller may be entitled to deduct gross receipts for
				sales, licenses or leases facilitated on its behalf by a marketplace provider
				under Section
				7-9-117
				NMSA 1978. A marketplace seller that is not entitled to deduct gross receipts
				for sales, licenses or leases facilitated on its behalf by a marketplace
				provider under Section
				7-9-117
				NMSA 1978 may be entitled to other exemptions and deductions under the Gross
				Receipts and Compensating Tax Act that would otherwise apply to those gross
				receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.21 - TAX ON GROSS RECEIPTS FROM SERVICES PERFORMED OUTSIDE THE STATE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Beginning July
				1, 2021 most services performed outside New Mexico the product of which is
				initially used in New Mexico are not exempt under Section
				7-9-13.1
				NMSA 1978.
B. The term "initial
				use" is used here as defined in Section
				7-9-3
				NMSA 1978 and in other regulations under the Gross Receipts and Compensating
				Tax Act. Gross receipts from selling services performed outside New Mexico are
				subject to the gross receipts tax only if the product of the service is
				initially used in the state. If the product of the service performed outside of
				New Mexico is delivered in New Mexico but not initially used in the state,
				receipts from selling the service are not taxable in the state.
C. If the product of a service performed
				outside of New Mexico is initially used in the state, then the business
				location to which the gross receipts and related deductions are reported and
				the applicable tax rate will be determined under Section
				7-1-14
				NMSA 1978, which, depending on the type of service, may look to the location of
				delivery of the service to the customer.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.22 - LEASING

Current through Register Vol. 35, No. 13, July 16, 2024
Security agreement distinguished from a lease - tax
				  consequences:
A. The gross
				receipts from leasing equipment to a lessee for the lessee's own use and not
				for subsequent leasing are subject to the gross receipts tax unless the
				presence of all or a majority of the following or similar indicia indicates
				that the transaction between lessor and lessee is in fact a financing
				transaction between a secured party and a buyer:
(1) There is a written agreement which
				provides that, upon compliance with the terms of the agreement, the buyer has
				the option to purchase the property without additional consideration or with
				nominal consideration; exercise of the option in itself is not sufficient to
				establish the transaction as an installment sale.
(2) The secured party pays for the equipment
				selected by the buyer from the stock of an independent vendor with funds
				allocable to a line of credit previously extended by the secured party to the
				buyer.
(3) The payments made by the
				buyer to the secured party are determined by the cost of the equipment selected
				by the buyer plus an interest charge added by the secured party.
(4) If the buyer is not a federal, state,
				local or Indian government, the equipment is carried as an asset on the books
				of the buyer and depreciated by the buyer, not the secured party, and if the
				buyer is a federal, state, local or Indian government, the tangible personal
				property is not carried as an asset on the books of the seller or depreciated
				by the seller.
(5) The secured
				party treats the total amount of payment as receivables on its books and treats
				the interest charged the buyer as "unearned income", transferring amounts to
				"income" as payments are received.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.23 - "PERFORMANCE OF A SERVICE", "PRODUCT OF THE SERVICE", "INITIAL USE", AND "DELIVERY"; PRESUMPTIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Relationship between certain terms and consistency in use of those terms. The
				terms "sale of a service performed," "performance of a service," "product of
				the service," "initial use" and "delivery" are defined or used in the Gross
				Receipts and Compensating Tax Act and regulations in a way that makes them
				closely related in their application. The terms are used in Section
				7-9-3.5
				NMSA 1978, the definition of "gross receipts," to describe gross receipts from
				performing or selling services that will be subject to tax and in Section
				7-9-57
				NMSA 1978 to describe a deduction for sales to out-of-state buyers. Regardless
				of the context in which they are used, or whether the service is performed
				inside or outside the state, these terms will be interpreted and applied
				consistently.
B. Delivery and
				initial use of the product of construction services and construction related
				services, in-person services, and services which that produce tangible personal
				property.
(1) The product of a construction
				service or a construction related service is delivered and initially used in
				New Mexico if the related construction site is located in New Mexico.
(2) The product of an in-person service is
				delivered and initially used in New Mexico if the location of the performance
				of the service is in New Mexico.
(3) The product of a service, the primary
				purpose of which is to produce tangible personal property, is delivered and
				initially used in New Mexico if the tangible personal property is delivered to
				the purchaser or a person designated to receive the property in New
				Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.25 - MANUFACTURING - GENERAL EXAMPLES

Current through Register Vol. 35, No. 13, July 16, 2024
A. For purposes of Subsection H of Section
				7-9-3
				NMSA 1978, combining means assembling two or more pieces of tangible personal
				property to create another piece of personal property. Processing means to
				convert tangible personal property into a marketable form. A person is engaged
				in the business of manufacturing only if:
(1)
				that person combines or processes components or materials;
(2) the value of the tangible personal
				property which has been combined with other tangibles or which has been
				processed has increased as a direct result of the manufacturing process;
				and
(3) the person manufacturing
				sells the same or similar type of manufactured products in the ordinary course
				of business.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.27 - PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Bills,
				notes, etc.
: Tangible personal property does not include bills, notes,
				checks, drafts, bills of exchange, certificates of deposit, letters of credit,
				or any negotiable instrument. Coins, stamps, and documents which have a
				historic value or market value in excess of their face value are tangible
				personal property.
B.
Sale of
				license to use software is sale of property
:
(1) The definition of property includes
				licenses. The sale of a license to use software constitutes a sale of property
				and comes within the definition of gross receipts.
(2) The transaction constitutes a sale of a
				license to use the software program when a computer software company sells an
				already-developed software program where:
(a)
				no extraordinary services are performed in order to furnish the
				program;
(b) the buyer pays a fixed
				amount for the license to use the program and use is generally limited to a
				specific computer; and
(c) the
				buyer may not resell to any other person a license to use the program and may
				not transfer the software package itself to any other person.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.29 - SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
When a
				transaction is predominantly a service:
(1) A transaction involving both the transfer
				of tangible personal property to the buyer and the performance of a service
				other than a construction or research and development service is predominantly
				a service when:
(a) the seller is not
				regularly engaged in selling or leasing the same or similar tangible personal
				property other than in conjunction with the sale of a service; and
(b) at least one of the following conditions
				applies:
(i) the transaction is primarily the
				performance of work and the transfer of any property through the transaction is
				incidental to the performance of the required work; or
(ii) the transaction requires the performance
				of work which is substantially greater in value than the value of the tangible
				personal property involved in the transaction; or
(iii) the performer of the service has the
				power to influence significantly the degree of involvement of the tangible
				personal property in the transaction.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.30 - USE AND USING

Current through Register Vol. 35, No. 13, July 16, 2024
The definition of "use" and "using" pursuant to Subsection N
				  of Section
				  7-9-3
				  NMSA 1978 includes three components: use, consumption and storage.
A.
Use
: The first component,
				"use", means to employ or utilize property or a service for a particular
				purpose. Use does not include mere ownership or possession of property. Use
				does not include the mere treatment, processing or servicing of tangible
				property to make the property fit for utilization when the ultimate use of the
				property is outside New Mexico. Use does not include the transfer to the
				customer of tangible personal property in the course of the treatment,
				processing or servicing or the return of the property to the owner at the
				conclusion of the treatment, processing or servicing.
(1)
Example 1
: The uses of a
				chair are many and varied. Its designed or intended use is being sat on by
				human beings. A chair, however, may also be "used" to wedge a door shut, as a
				step-ladder to reach something, as a receptacle to hold objects, as a display
				item, as a support to prop up a table or shelf and many other purposes not
				planned by its designer or maker. In contrast, a chair is not "used" by being
				assembled, polished, painted, upholstered or recaned.
(2)
Example 2
: B enters into
				a contract with C, a firm in New Mexico. Under the contract, B sends a gaseous
				compound to C for separation. C returns the separated materials to B or
				delivers them to D for further processing. B has not used the compound or the
				separated materials in New Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 2 - DATE PAYMENT DUE › Section 3.2.2.1 - 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 2 - DATE PAYMENT DUE › Section 3.2.2.5 - 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 2 - DATE PAYMENT DUE › Section 3.2.2.6 - 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 2 - DATE PAYMENT DUE › Section 3.2.2.8 - EXTENSION OF TIME FOR PAYMENT

Current through Register Vol. 35, No. 13, July 16, 2024
The time for payment of the tax may be extended under unusual
				  circumstances upon proper application to the department prior to the due
				  date.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 2 - DATE PAYMENT DUE › Section 3.2.2.9 - DETERMINATION OF TIMELINESS

Current through Register Vol. 35, No. 13, July 16, 2024
Determination of what timeliness is in relation to the filing
				  of returns, notices, and applications and the making of payments is governed by
				  Section
				  7-1-9
				  NMSA 1978 of the Tax Administration Act and regulations thereunder.
				  Requirements for making payments equal to or in excess of $25,000 are governed
				  by Section
				  7-1-13.1
				  NMSA 1978 of the Tax Administration Act and regulations
				  thereunder.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 2 - DATE PAYMENT DUE › Section 3.2.2.10 - EFFECT OF SATURDAY, SUNDAY, OR HOLIDAY ON PAYMENT DATE

Current through Register Vol. 35, No. 13, July 16, 2024
When the total tax due is less than $25,000 and the last day
				  for payment of the combined taxes on the CRS-1 Combined Report Form falls on
				  Saturday, Sunday or a legal holiday, the payment shall be considered timely if
				  it is postmarked or filed in person the next succeeding day which is not a
				  Saturday, Sunday or a legal New Mexico or national holiday.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 2 - DATE PAYMENT DUE › Section 3.2.2.11 - REPORTING OF PROGRESS PAYMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A contractor who receives progress payments or other
				  consideration for services performed on and materials provided for a
				  construction project as defined in Section
				  7-9-3.4
				  NMSA 1978 must report such payments or other consideration as gross receipts.
				  If the contractor is a cash-basis taxpayer, the contractor must report any such
				  payments or other consideration actually received in a particular month as
				  receipts for that month. If the contractor is an accrual basis taxpayer, any
				  amounts which the contractor earned or billed or to which the contractor became
				  entitled during a particular month must be reported as receipts for that month
				  as required by Section
				  7-9-11 NMSA
				  1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 2 - DATE PAYMENT DUE › Section 3.2.2.12 - PETITION TO CHANGE ACCOUNTING METHODS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A taxpayer who elects to report gross
				receipts tax on either the cash, modified accrual or accrual basis is bound by
				that election and must report the gross receipts tax on that basis unless the
				taxpayer petitions the secretary or the secretary's delegate in writing to
				allow a change in reporting method as required by Subsection C of Section
				7-1-10
				NMSA 1978 and the petition is granted. A change in accounting method operates
				prospectively from the date the petition for change of method is
				granted.
B. A taxpayer who elects
				to report governmental gross receipts tax on either the cash, modified accrual
				or accrual basis is bound by that election and must report the governmental
				gross receipts tax on that basis unless the taxpayer petitions the secretary or
				the secretary's delegate in writing to allow a change in reporting method as
				required by Subsection C of Section
				7-1-10
				NMSA 1978 and the petition is granted. A change in accounting method operates
				prospectively from the date the petition for change of method is
				granted.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 2 - DATE PAYMENT DUE › Section 3.2.2.13 - REPORTING OF GROSS RECEIPTS - SEMI-ANNUAL REPORTING OR QUARTERLY REPORTING

Current through Register Vol. 35, No. 13, July 16, 2024
Taxpayers who have a tax liability which averages less than
				  two hundred dollars ($200) per month and have been granted authority to report
				  gross receipts or governmental gross receipts on either a semi-annual filing
				  basis or quarterly filing basis must file a return with payment on or before
				  the twenty-fifth day of the month following the last month of the semi-annual
				  filing period or of the quarterly filing period. The taxpayer does not have
				  authority to change from one reporting interval to another without the prior
				  approval of the secretary or the secretary's delegate.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 2 - DATE PAYMENT DUE › Section 3.2.2.14 - ACCRUAL AND CASH BASIS REPORTING

Current through Register Vol. 35, No. 13, July 16, 2024
A. Cash basis taxpayers report as gross
				receipts or governmental gross receipts all cash and other consideration
				received during the tax reporting period.
B. Accrual basis taxpayers report as gross
				receipts or governmental gross receipts amounts of sales, including cash and
				charge sales, made during the tax reporting period.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 2 - DATE PAYMENT DUE › Section 3.2.2.15 - RETURN REQUIRED TO BE FILED

Current through Register Vol. 35, No. 13, July 16, 2024
Taxpayers who are registered for gross receipts, governmental
				  gross receipts, compensating or withheld income tax purposes must file a CRS-1
				  Combined Report Form for each reporting period whether or not any tax is
				  due.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 4 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "GROSS RECEIPTS TAX" › Section 3.2.4.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 4 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "GROSS RECEIPTS TAX" › Section 3.2.4.2 - 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 4 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "GROSS RECEIPTS TAX" › Section 3.2.4.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 4 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "GROSS RECEIPTS TAX" › Section 3.2.4.5 - 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 4 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "GROSS RECEIPTS TAX" › Section 3.2.4.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 4 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "GROSS RECEIPTS TAX" › Section 3.2.4.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
For the purposes of Section
				  3.2.4.9
				  NMAC:
A. "Indian tribe" means an
				Indian nation, tribe or pueblo, including:
(1) any political subdivision, agency or
				department of that Indian nation, tribe or pueblo;
(2) any incorporated or unincorporated
				enterprise of the Indian nation, tribe or pueblo or its political subdivisions,
				agencies or departments; and
(3)
				any corporation required to be considered an Indian and therefore a member of
				the Indian nation, tribe or pueblo under
Eastern Navaho
				Industries, Inc. v. Bureau of Revenue
, 552 P.2d 805 (N.M. App.
				1976); and
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 4 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "GROSS RECEIPTS TAX" › Section 3.2.4.8 - WHO IS THE TAXPAYER

Current through Register Vol. 35, No. 13, July 16, 2024
The gross receipts tax is imposed on persons engaging in
				  business in New Mexico. Such persons are solely liable for payment of the tax;
				  they are not "collectors" on behalf of the state.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 4 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "GROSS RECEIPTS TAX" › Section 3.2.4.10 - FEDERAL PREEMPTION AND STATE EXEMPTION - CREDIT UNIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
									12
				U.S.C. 1768 exempts federal credit unions
				from state taxation, other than property taxation. Accordingly, the receipts of
				federal credit unions are exempt from the gross receipts tax.
B. Section
				58-11-61 NMSA
				1978 exempts from state taxation credit unions organized under or subject to
				the Credit Union Regulatory Act to the same extent that credit unions chartered
				under federal law are exempt. Therefore receipts of credit unions organized
				under or subject to the Credit Union Regulatory Act are also exempt from the
				gross receipts tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 4 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "GROSS RECEIPTS TAX" › Section 3.2.4.11 - FEDERAL PREEMPTION - JOB CORPS CONTRACTORS

Current through Register Vol. 35, No. 13, July 16, 2024
29 U.S.C. 1707(c) prohibits states and their subdivisions
				  from imposing gross receipts taxes on receipts of Job Corps contractors from
				  operating any Job Corps center, program or activity. Accordingly the receipts
				  of Job Corps contractors from operating a Job Corps center, program or activity
				  are exempt from the gross receipts tax.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 5 - PRESUMPTION OF TAXABILITY › Section 3.2.5.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 5 - PRESUMPTION OF TAXABILITY › Section 3.2.5.5 - 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 5 - PRESUMPTION OF TAXABILITY › Section 3.2.5.6 - 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 Gross Receipts and Compensating Tax
				  Act.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 5 - PRESUMPTION OF TAXABILITY › Section 3.2.5.8 - PERSONS NOT REQUIRED TO REGISTER WITH THE DEPARTMENT

Current through Register Vol. 35, No. 13, July 16, 2024
A. A person engaging in business must
				register with the department to report gross receipts unless that person is
				clearly engaged solely in an activity the receipts from which are exempt as
				provided in Sections
				7-9-13
				through
				7-9-42 NMSA 1978 or
				other law. Even though a person's receipts may be entirely deductible under
				provisions of the Gross Receipts and Compensating Tax Act, the person must
				register, report those receipts, and claim the applicable deduction or
				deductions.
B. The following
				examples illustrate the application of Section
				7-9-5
				NMSA 1978:
(1) Example 1: A is engaged in the
				business of farming. A's sole activity is raising cotton which is then sold
				through a broker to a cotton mill. Because this sale activity is specifically
				exempted in Section
				7-9-18
				NMSA 1978, A does not have to register under the Gross Receipts and
				Compensating Tax Act or file a return.
(2) Example 2: B is a farmer. B raises cotton
				that is sold through a broker to a mill. B also owns a retail grocery store. B
				contends that there is no need to register with the taxation and revenue
				department since B is engaged in a specifically exempted activity. B must
				register with the department since B is also engaged in selling groceries, an
				activity that is not specifically exempt from the Gross Receipts and
				Compensating Tax Act. However, B does not have to report the receipts derived
				from the sale of cotton, because these receipts are specifically
				exempt.
(3) Example 3: V Company
				employs five persons and is engaged solely in the business of buying wool from
				farmers and selling it to yarn factories. Because V's receipts are exempt from
				taxation under Section
				7-9-18
				NMSA 1978, it is not required to register for gross receipts taxation with the
				department. However, V is required to register and file the necessary returns
				under the Withholding Tax Act, Sections
				7-3-1 through
				7-3-12 NMSA 1978, and
				comply with any other tax laws that pertain to its business.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 6 - SEPARATELY STATING THE GROSS RECEIPTS TAX › Section 3.2.6.1 - 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 6 - SEPARATELY STATING THE GROSS RECEIPTS TAX › Section 3.2.6.3 - 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 6 - SEPARATELY STATING THE GROSS RECEIPTS TAX › Section 3.2.6.5 - 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 6 - SEPARATELY STATING THE GROSS RECEIPTS TAX › Section 3.2.6.6 - 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 6 - SEPARATELY STATING THE GROSS RECEIPTS TAX › Section 3.2.6.8 - SEPARATELY STATING THE GROSS RECEIPTS TAX

Current through Register Vol. 35, No. 13, July 16, 2024
A. A person who is required to report and pay
				tax on gross receipts is not required to charge or collect the tax from the
				customer, but if the person does not separately state the amount of tax on the
				bill other transactional document provided to the customer, the person must
				affirmatively state that the gross receipts tax is included in the amount
				billed. This requirement is met if the person provides a general statement on
				bills or invoices to customers stating that New Mexico tax is included or if
				the information generally provided to New Mexico customers at the time of sale
				or subsequently indicates that the seller has included New Mexico tax in the
				amount charged.
B. A person who
				uses reasonable estimates as provided in
				3.1.4.13
				NMAC to determine the reporting location for reporting gross receipts and
				related deductions may also use these estimates for the purpose of billing tax
				to customers.
C. Gross receipts
				does not include the gross receipts tax, including any local option amount of
				tax, due. In a case where a person does not separately charge the tax or where
				the tax is charged at a different rate than the rate actually due, the person
				shall compute the amount of gross receipts net of tax as follows:
(1) total amount charged including any
				separately charged tax;
(2) divided
				by 1 plus the tax rate expressed as a decimal;
(3) equals gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 6 - SEPARATELY STATING THE GROSS RECEIPTS TAX › Section 3.2.6.9 - WHO IS THE TAXPAYER

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The gross receipts tax is imposed on persons engaging in business in New
				Mexico. Such persons are solely liable for payment of the tax; they are not
				"collectors" on behalf of the state.
B. Section
				7-9-6
				NMSA 1978 treats as gross receipts, subject to the gross receipts tax, any
				amount of money shown on the books and records of a seller or lessor as the tax
				on receipts from a transaction which is in excess of the tax the seller or
				lessor is liable to report and pay to the department.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.1 - ISSUING AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
Taxation and Revenue Department, Joseph M. Montoya Building,
				  1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM
				  87504-0630
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to all persons using property in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.3 - STATUTORY AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Section
				  9-11-6.2
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.5 - 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 10 - IMPOSITION AND RATE OF TAX - DENOMINATION AS "COMPENSATING TAX" › Section 3.2.10.6 - OBJECTIVE

Current through Register Vol. 35, No. 13, July 16, 2024
The objective of this part is to interpret, exemplify,
				  implement and enforce the provisions of the Gross Receipts and Compensating Tax
				  Act.