reglab/statecodes huggingface dataset:
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.8 - GENERAL BUSINESS SERVICES ARE NOT CONSTRUCTION SERVICES OR CONSTRUCTION-RELATED SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				General business services, such as accounting, legal services, real estate
				brokering, telecommunications and plan room services are not construction
				services within the definition of construction under Section
				7-9-3.4
				NMSA 1978 nor are they construction-related services as defined in Section
				7-9-52
				NMSA 1978. Receipts from performing these types of services to a construction
				contractor are subject to gross receipts tax.
B. Example 1: K is a law firm that contracts
				with C, a contractor, to provide legal services. K maintains that it is selling
				a legal service to C that is necessary for the completion of the construction
				project and that its receipts should not be subject to gross receipts tax.
				Legal services are not included under the definition of construction under
				Section
				7-9-3.4
				NMSA 1978 or under the definition of construction-related services under
				Section
				7-9-52
				NMSA 1978. There is no deduction available for K's receipts from providing
				legal services to C.
C. Example 2:
				C provides B with telecommunications services through which B can maintain
				contact with B's construction crew working at a remote site. C's receipts from
				this service are not deductible under Section
				7-9-52
				NMSA 1978.
D. Example 3: C is
				engaged in the construction business and undertakes a project where the builder
				has no pre-paid client, and the project is speculative. C acquires the land and
				obtains a construction loan to fund the improvements on the land. The
				construction loan documents include charges for banking fees that are not
				pre-paid interest or interest on the loan balance. The banking fees are for a
				general business service and not considered a construction-related service and
				therefore not deductible under Section
				7-9-52
				NMSA 1978.
E. This version of
				3.2.210.8 NMAC applies to transactions occurring on or after January 1,
				2013.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.9 - WELL CONSTRUCTION SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from the sale of the following
				services in connection with well drilling are receipts from the sale of
				construction services as defined in Section
				7-9-3.4
				NMSA 1978, and may be deducted from gross receipts if all other requirements of
				Section
				7-9-52
				NMSA 1978, are met:
(1) dirt work and
				surfacing;
(2) digging cellars and
				pits;
(3) drilling
				ratholes;
(4) drilling water
				wells;
(5) laying water and fuel
				lines;
(6) directional drilling
				services;
(7) casing crew
				services;
(8) cementing
				services;
(9) drill stem testing;
				and
(10) fishing jobs.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.10 - HAULING SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from hauling materials, prefabricated buildings and
				  supplies to and from a building site on or after January 1, 2013, for a person
				  engaged in the construction business are construction-related services and are
				  deductible from the hauler's gross receipts pursuant to Section
				  7-9-52
				  NMSA 1978 if all requirements of Section
				  7-9-52
				  NMSA 1978 are met.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.13 - WATER TAPS

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts of a utility from providing a "tap" to a water main
				  and installing a pipe from the water main to a meter which it provides to a
				  person engaged in the construction business are deductible from gross receipts
				  if the person engaged in the construction business delivers a nontaxable
				  transaction certificate pursuant to Section
				  7-9-52
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.14 - SALVAGING OF A "PRODUCTION UNIT"

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts of a person engaged in the business of servicing
				  "production units" as defined in the Oil and Gas Emergency School Tax Act,
				  Section
				  7-31-2 NMSA 1978,
				  from performing services in connection with salvaging of materials from a
				  "production unit" are not receipts from the sale of construction services or
				  from construction-related services within the meaning of Section
				  7-9-52
				  NMSA 1978 and may not be deducted from gross receipts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.15 - CLEANING THE CONSTRUCTION SITE

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from cleaning a building upon
				completion of a construction project; from cleaning masonry upon the completion
				of a construction project; from making an earth fill for drainage purposes;
				from providing an earth fill of a granular type required by specifications; and
				from replacing construction rejected by the architects, the engineers or the
				owners are receipts from performing construction services. Such receipts may be
				deducted from gross receipts if the buyer delivers a nontaxable transaction
				certificate to the seller.
B.
				Receipts from cleaning the building at any time other than during or
				immediately after completion of the construction project or cleaning masonry in
				a standing building in order to restore its appearance are not deductible under
				Section
				7-9-52
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.16 - DAMAGE TO A CONSTRUCTION PROJECT BY SUBCONTRACTOR

Current through Register Vol. 35, No. 13, July 16, 2024
A. Charges by a contractor to a subcontractor
				for damages to a construction site caused by the subcontractor are not gross
				receipts to the contractor, but constitute a reduction in the amount of
				consideration paid to the subcontractor for the service performed by the
				subcontractor.
B. Example: A, a
				prime contractor, contracts with C, an independent contractor, to repair a part
				of a construction project damaged by B, a subcontractor on the project. B is
				responsible to A for the cost of such repair. A also contracts with D, a person
				engaged in the business of hauling trash, to remove trash and debris left by B
				after completion of B's portion of the project. B is obligated by the terms of
				the contract to remove the trash and debris. A charges B for the cost of repair
				paid to C and for the cost of hauling paid to D, either by deducting such cost
				from the amount A will pay B upon completion of B's work or by billing B
				directly for them.
(1) A's charges to B for
				the cost of repair is a reduction in the cost of A's subcontract with B. A,
				therefore, derives no receipts from the charge to B, regardless of whether A
				subtracts the cost of work done by C from the amount A pays B or whether B pays
				A the cost of the work performed by C.
(2) A may deliver a nontaxable transaction
				certificate (nttc) to C, the independent contractor, if the service performed
				by C is a construction service within the meaning of Section
				7-9-52
				NMSA 1978.
(3) On or after January
				1, 2013, A may deliver an nttc to D for hauling trash, since hauling is a
				construction-related service within the meaning of Section
				7-9-52
				NMSA 1978 if all the requirements of that section are met.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.17 - MANUFACTURER'S EQUIPMENT INSTALLATION

Current through Register Vol. 35, No. 13, July 16, 2024
If a manufacturer of equipment agrees to install equipment on
				  a construction project in such a manner that the equipment becomes an
				  ingredient or component part of the construction project, then the manufacturer
				  of the equipment is selling a construction service, (installation of the
				  equipment) and is a "person engaged in the construction business". Receipts of
				  the manufacturer for installing the equipment may be deducted from gross
				  receipts if the prime contractor delivers a nontaxable transaction certificate
				  (nttc) to the manufacturer. If the manufacturer hires a person to install the
				  equipment, that person is installing such equipment for "a person engaged in
				  the construction business" and may deduct the receipts from gross receipts if
				  the manufacturer delivers an nttc pursuant to Section
				  7-9-52
				  NMSA 1978 to the person installing equipment.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.18 - CONSTRUCTION-RELATED SERVICES - LABORATORY WORK AND ENVIRONMENTAL TESTING

Current through Register Vol. 35, No. 13, July 16, 2024
A. Prior to January
				1, 2013, receipts of a person engaged in the business of performing laboratory
				work, such as the design or testing of dirt or concrete work, from the sale of
				these services to a person engaged in the construction business are not
				construction services within the meaning of Section
				7-9-52
				NMSA 1978 and may not be deducted from the seller's gross receipts pursuant to
				Section
				7-9-52
				NMSA 1978.
B. Receipts for
				laboratory work or environmental testing performed on or after January 1, 2013,
				are receipts from performing construction-related services as defined in
				Section
				7-9-52
				NMSA 1978 and are deductible if the requirements of Section
				7-9-52
				NMSA 1978 are met.
C. Example: X is
				engaged in the construction business. In order to comply with the requirements
				of the federal environmental protection agency, X must obtain the services of
				Y, a certified lead paint consultant. Y will test for the existence of lead
				paint in any building being demolished or remodeled by X, prepare a federally
				required report, suggesting additional best management practices, and send
				samples to a testing lab. Services provided by Y on or after January 1, 2013,
				are construction-related services and are deductible under Section
				7-9-52
				NMSA 1978 as long as all the requirements in the statute are met.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.19 - CONSTRUCTION-RELATED SERVICES AND ASSOCIATED PRODUCTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from the sale of design services
				and special inspections that are required to verify specifications in design
				criteria to a person engaged in the construction business, are
				construction-related services and deductible under Section
				7-9-52
				NMSA 1978.
B. Receipts from the
				sale of building plans, professional stamps, or similar products to a person
				engaged in the construction business are construction-related services as
				defined in Section
				7-9-52.
				Receipts from such sales that are contracted for or billed to a construction
				project may be deducted from the seller's gross receipts pursuant to Section
				7-9-52
				NMSA 1978 if the buyer is engaged in the construction business and delivers a
				nontaxable transaction certificate to the seller.
C. Example 1: C is engaged in the
				construction business. In order to begin the construction project C obtains the
				services of A, a design/architectural firm, to draw the plans necessary to
				obtain the building permit. Under Section
				7-9-52
				NMSA 1978, the plan preparations are a construction-related service. As long as
				the construction project is subject to gross receipts tax upon its completion,
				or located on tribal land, C may execute an nttc to A and A's receipts will be
				deductible under Section
				7-9-52
				NMSA 1978 as construction-related services.
D. Example 2: X is engaged in the
				construction business and contracts with Y, who is also engaged in the
				construction business, for the design and construction of the mechanical
				ducting system on X's construction project. Building code requires certain
				portions of the mechanical system to be designed by a mechanical engineer. Y,
				enters into a contract for the services of E, an engineering firm, to perform
				the calculations, design a portion of the system, and place an engineer's
				"seal" on E's part of the mechanical ducting design. E is able to accept an
				nttc from Y as E's service is a construction-related service as defined in
				Section
				7-9-52
				NMSA 1978. X may also execute an nttc under Section
				7-9-52
				NMSA 1978 to Y so long as the X's completed project is subject to gross
				receipts tax.
E. This version of
				3.2.210.19 NMAC applies to transactions occurring on or after January 1,
				2013.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.20 - COMPENSATING TAX ON CONSTRUCTION SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
When a person engaged in the construction business leases out
				  or otherwise uses a construction project for which construction services or
				  construction-related services were purchased using a nontaxable transaction
				  certificate (nttc), the compensating tax is due if the project is occupied or
				  leased prior to sale. The value of the construction services or
				  construction-related services to be reported is the actual cost of the
				  construction services purchased using nttcs, and the tax is due at the time of
				  occupancy.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.21 - MUD ENGINEERING SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
Gross receipts from providing a mud engineering service at
				  the well site to supervise the mixing of various agents and to make
				  recommendations as to the type of fluids needed for the particular formations
				  encountered in drilling wells are receipts from providing construction-related
				  services as defined in Section
				  7-9-52
				  NMSA 1978 and are deductible pursuant to Section
				  7-9-52
				  NMSA 1978. Receipts from mud engineering services performed on or after January
				  1, 2013, may be deductible pursuant to Section
				  7-9-52
				  NMSA 1978 if a buyer engaged in the construction business delivers a nontaxable
				  transaction certificate to the seller.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.22 - LEASE OF CONSTRUCTION EQUIPMENT

Current through Register Vol. 35, No. 13, July 16, 2024
A. This version of 3.2.210.22 NMAC applies to
				transactions prior to January 1, 2013. Receipts from the lease of construction
				equipment on or after January 1, 2013, may be deductible under Section
				7-9-52.1
				NMSA 1978, if all requirements set out in Section
				7-9-52.1
				NMSA 1978 and 3.2.249.8 and 9 NMAC are met.
B. Receipts from leasing construction
				equipment, with or without operators, to a person engaged in the construction
				business may not be deducted from the lessor's gross receipts pursuant to
				Section
				7-9-52
				NMSA 1978. Leasing of construction equipment is not a construction service as
				defined in Subsection A of Section
				7-9-3.4
				NMSA 1978.
C. In contrast, when a
				person who is regularly engaged in the selling of construction services, such
				as a subcontractor, uses the subcontractor's own construction equipment to
				perform construction services for a person engaged in the construction
				business, the subcontractor may deduct the receipts for the services and
				equipment under Section
				7-9-52
				NMSA 1978 if:
(1) the subcontractor is an
				independent contractor and not an employee of the person engaged in the
				construction business; and
(2) the
				subcontractor exercises control over the use of the property in performing the
				services; the controlling factor is whether the equipment owner has control
				over the performance of the construction service which involves using the
				equipment or is simply operating the equipment at the direction of some other
				person engaged in the construction business.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.24 - CONSTRUCTION-RELATED INSPECTION SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A. The receipts from the sale of inspection
				services to a person engaged in the construction business may be deducted from
				the seller's gross receipts pursuant to Section
				7-9-52
				NMSA 1978 when they are directly contracted for or billed to a specific
				construction project and if all the requirements of Section
				7-9-52
				NMSA 1978 are met. These inspection services include but are not limited to:
(1) field sampling or testing of construction
				components in order to comply with building codes; and
(2) stormwater runoff testing and routine
				inspections for compliance with permits required under the federal Clean Water
				or Clean Air Acts.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 210 - DEDUCTION - GROSS RECEIPTS TAX - CONSTRUCTION PURPOSES › Section 3.2.210.25 - TRANSACTIONS INVOLVING CONSTRUCTION-RELATED SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
The following are examples of transactions that involve
				  construction-related services and how the deduction for these services under
				  Section
				  7-9-52
				  NMSA 1978 may or may not apply to the specific facts of these
				  transactions.
A. Example 1: X is a
				general contractor who has been hired to design and build an office building.
				In addition to the typical construction service subcontractors, X also hires an
				Y, an engineering firm and Z, an architect, to perform construction-related
				services that are directly contracted for this particular construction project.
				If X provides Y and Z with an appropriate nontaxable transaction certificate, Y
				and Z can take the deduction for construction-related services under Section
				7-9-52
				NMSA 1978.
B. Example 2: T, a
				construction contractor, hires S, a security firm, to provide security services
				at T's ten construction sites. S has experienced some recent employment
				turnover and does not have enough employees to provide security services for
				all of T's construction sites. As a result, S is required to subcontract with
				W, an independent security company for two of the construction sites. T
				executes a nontaxable transaction certificate (nttc) pursuant to Section
				7-9-52
				NMSA 1978 to S for the security services for the ten construction sites which
				allows S to take the construction-related service deduction under Section
				7-9-52
				NMSA 1978. The receipts from the services provided by W to S are subject to
				gross receipts tax unless a specific exemption or deduction applies. The
				deduction under Section
				7-9-52
				NMSA 1978 does not apply to this transaction, because S is not a person engaged
				in the construction business and therefore not authorized to execute an nttc
				under that section. The general service for resale deduction under Section
				7-9-48
				NMSA 1978 also does not apply because this deduction requires that the resale
				of the security services by S to T must be subject to gross receipts tax. Since
				S is taking the deduction under Section
				7-9-52
				NMSA 1978 this requirement in Section
				7-9-48
				NMSA 1978 cannot be met. W's receipts from providing security services to S are
				subject to gross receipts tax.
C.
				Example 3: Same facts as in Example 2 except S does not enter into a
				subcontract with W. Instead, T amends the contract with S to provide security
				services for only eight of the construction sites and T enters into a separate
				contract with W to provide security services for the remaining two sites. So
				long as T provides nttcs to S and W, both security providers can take the
				construction related service deduction under Section
				7-9-52
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.1 - 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 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.2 - SCOPE

Current through Register Vol. 35, No. 13, July 16, 2024
This part applies to each person engaging in business in New
				  Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.3 - 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 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.5 - EFFECTIVE DATE

Current through Register Vol. 35, No. 13, July 16, 2024
7/15/96, 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 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.6 - 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 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
"Trailer
				park" defined:
As used in Section
				7-9-53
				NMSA 1978 and regulations thereunder, a "trailer park" is any facility where a
				manufactured home or recreational vehicle is or may be parked, which facility
				is operated by a person:
(1) who offers space
				for one or more manufactured homes or recreational vehicles, either with or
				without manufactured homes or recreational vehicles located thereon, for rent
				or hire; and
(2) who provides any
				of the customary services or facilities for those lodgers, guests, roomers or
				others who occupy manufactured homes, such as: utilities, garbage service,
				telephone service, cleaning service, protection service or ground
				keeping.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.8 - RECEIPTS FROM PROVIDING ACCOMMODATIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A.
Change of name of facility:
The operator of a hotel, motel, rooming house, campground, guest ranch, trailer
				park or other facility which operates in a manner similar to the listed
				facilities may not, by merely changing the name of the facility, qualify for
				the deduction granted by Section
				7-9-53
				NMSA 1978.
B.
Rental of space
				for less than one month:
(1) Receipts
				of a person in the business of operating a trailer park from the rental of a
				space for a manufactured home or, on or after July 1, 1998, a recreational
				vehicle for a period of under one month are subject to the gross receipts
				tax.
(2) Receipts of a person in
				the business of operating a trailer park from the rental of a space for a
				manufactured home or, on or after July 1, 1998, a recreational vehicle for a
				period of over one month are deductible from gross receipts.
(3) Example 1: X owns and operates a trailer
				park located in the state of New Mexico. Y rents a trailer space for Y's
				manufactured home from X on April 15 on a month-to-month basis. Y pays one-half
				month's rent at that time and signs an agreement to pay rent in advance for
				each subsequent calendar month. Y pays May's rent on April 29. X may deduct all
				the receipts from the rental of trailer space to Y because the receipts are
				from the rental of a space for a manufactured home for over one
				month.
(4) Example 2: X owns and
				operates a trailer park located in New Mexico. X leases a trailer space to Y
				for Y's manufactured home for one year, taking a month's rent in advance.
				During the third week of the lease period and prior to 30 consecutive days of
				the lease term, Y breaks the lease and moves out. X may still deduct the rent
				received from Y covering the first month's occupancy if X is entitled to keep
				the rent attributable to the portion of the month in which there was no
				occupancy and if X does not rent that space to anyone else prior to the
				expiration of the first month.
(5)
				Example 3: X owns and operates a trailer park in New Mexico. Y does not enter
				into a lease with X but places a manufactured home in the trailer space as a
				tenant at will. After a period of three weeks X tells Y to move from the
				trailer park. X may not deduct the receipts derived from the rental of a
				trailer space to Y because the rental was for a period of less than one month,
				and X has no legal right to receive additional rent from Y.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.9 - AMOUNT ATTRIBUTABLE TO IMPROVEMENTS AND THE COST OF LAND

Current through Register Vol. 35, No. 13, July 16, 2024
A. The proportion
				of the receipts from the sale of real property which is attributable to
				improvements constructed on the real property is determined by:
(1) subtracting from the sales price the cost
				of the land to the seller; or
(2)
				if there is substantial evidence that the value of the land is not the cost of
				the land to the seller, by subtracting from the sales price the value of the
				land as determined by an independent appraisal acceptable to the department,
				but in no case may the appraised value of the land exceed the difference
				between the sale price of the real property and the total cost of the
				improvements constructed on the real property.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.10 - REMODELING OR OTHER IMPROVEMENTS

Current through Register Vol. 35, No. 13, July 16, 2024
A. A person possessing a valid contractor's
				license who purchases and improves real property by either remodeling or
				constructing additional improvements on the property and who subsequently sells
				the real property with the improvements is considered to be regularly engaged
				in the construction business. The receipts attributable to the remodeling or
				other improvements constructed on the real property are subject to the gross
				receipts tax. The receipts subject to tax are the sales price less the value of
				the real property purchased. The value of real property (VRP) purchased is
				computed through the use of a formula. The formula is the ratio of the cost of
				the real property (CRP) purchased divided by the cost of the real property
				(CRP) plus the cost of the remodeling or other improvements (CRI) times the
				sales price (SP), or:
VRP = ( CRP ) / (CRP + CRI ) x SP
B. The value of real property (VRP) is then
				subtracted from the sales price (SP) and the difference is the amount
				attributable to the value of remodeling or other improvements (VRI), which
				amount is subject to the gross receipts tax, or:
SP - VRP = VRI (Taxable receipts)
C. Example: C, a Construction Company,
				purchases a lot and house for $10,000. C then remodels the interior and
				exterior of the house at a cost of $15,000 and adds a concrete driveway, patio
				and walkway at a cost of $5,000. Upon completion of the remodeling and
				construction of the other improvements, C sells the real property with
				improvements for $60,000. C should compute its taxable receipts as follows:
(1) Cost of real property (CRP) =
				$10,000
(2) Cost of remodeling and
				improvements (CRI) = $15,000 + $5,000 or $20,000
(3) Sales price = $60,000
(4) VRP = CRP / CRP + CRI x SP = $10,000 /
				$10,000+ $20,000 x $60,000 = $20,000
(5) SP - VRP = VRI (taxable receipts) =
				$60,000 - $20,000 = $40,000 (taxable receipts)
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.11 - UTILITIES - SALE OF COMPANY FACILITIES

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts of an electric utility company from the sale of
				  company facilities such as transformer installations or pole lines in place are
				  receipts from the sale of real property and may be deducted from gross receipts
				  pursuant to Section
				  7-9-53
				  NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.12 - LEASE OF ADVERTISING SIGNS

Current through Register Vol. 35, No. 13, July 16, 2024
A. The receipts from leasing advertising
				signs which are placed or implanted in real property in the possession of and
				occupied by the lessee, where the lessor reserves the right to remove the
				signs, are not receipts from leasing real property and are not deductible from
				gross receipts pursuant to Section
				7-9-53
				NMSA 1978. Such advertising signs are tangible personal property and are not
				real property.
B. Example: KR is an
				automobile manufacturer with dealerships all over the country. Because KR wants
				its dealerships to be easily recognized it requires them all to display large
				electric outdoor signs identifying the business as KR dealership. KR leases the
				signs to the dealerships but reserves the right to remove the signs. KR's
				receipts from leasing the signs to a New Mexico dealership are subject to the
				gross receipts tax. KR may not deduct its receipts from leasing these signs
				from gross receipts pursuant to Section
				7-9-53
				NMSA 1978 because KR is not leasing real property.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.13 - GASOLINE SERVICE STATION EQUIPMENT LEASE RECEIPTS

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts attributable to the use by a lessee of equipment,
				  tools and furniture included with the lease of a gasoline service station are
				  not deductible as receipts from leasing real property pursuant to Section
				  7-9-53
				  NMSA 1978. Such receipts are from the leasing of tangible personal property.
				  Where the receipts attributable to the leasing of tangible personal property
				  are not shown on the lessor's books and records, the amount to be reported is
				  the reasonable value of the tangible personal property leased prorated over the
				  term of the lease, but in no event shall the reasonable value be less than the
				  depreciated value of the tangible personal property at the beginning of the
				  lease term.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.14 - GENERAL EXAMPLES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				The following examples illustrate the application of Section
				7-9-53
				NMSA 1978.
B. Example 1: Y owns a
				home in Tatum, New Mexico. Y is transferred from Tatum to Aztec and must sell
				the home. Y sells it to Z. Y does not have to register with the department or
				report the receipts from the sale of the house because Y is neither engaged in
				the business of selling houses nor holding out as being engaged in this
				business. This transaction is exempt from the gross receipts tax as an isolated
				and occasional sale pursuant to Section
				7-9-28
				NMSA 1978. However, if Y's house is sold by a real estate broker, the real
				estate broker's commission is taxable.
C. Example 2: V, a railroad company, rents
				motel rooms in X's motel on a permanent basis as lodging for its train crews
				while they wait for a return trip to their home station. The receipts X
				receives from V are not deductible under Section
				7-9-53
				NMSA 1978. If, however, V leases the entire motel from X, X's receipts are
				deductible under Section
				7-9-53
				NMSA 1978.
D. Example 3: X is
				engaged in constructing homes on land that X owns and has subdivided. X then
				sells them to interested individuals. X's sales are sales of real property, but
				X must pay gross receipts tax on that portion of the receipts that are
				attributable to the value of the houses and other improvements that X has
				constructed on the real property.
E. Example 4: X has lived in P, a motel, for
				fifteen years. X rents a room from the motel for $1200 per year, payable in
				twelve monthly installments. P contends that the rental is a rental of real
				property and is deductible for the purposes of computing its tax liability
				under the gross receipts tax. The receipts which P receives from X are not
				deductible. Receipts from the rental of motel rooms are not
				deductible.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.16 - LOCKER ROOMS IN A WAREHOUSE/SELF STORAGE WAREHOUSE UNITS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from
				providing individual locker rooms inside a warehouse facility where the tenant
				must rely on the warehouse owner to gain access to the inside of the building,
				are receipts from granting a license to use and are not deductible as the lease
				of real property.
B. Receipts from
				individual, self-contained storage warehouse units where the tenant has
				exclusive possession, use and access to the unit and pays a specified periodic
				rental for the unit are receipts from leasing real property and, therefore, are
				deductible under Section
				7-9-53
				NMSA 1978.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 211 - DEDUCTION - GROSS RECEIPTS TAX - SALE OR LEASE OF REAL PROPERTY AND LEASE OF MANUFACTURED HOMES › Section 3.2.211.17 - RECEIPTS FROM LICENSE TO USE REAL PROPERTY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts derived from a license to use
				real property may not be deducted from gross receipts under Section
				7-9-53
				NMSA 1978, except that receipts derived from selling or leasing the entirety of
				the hunting rights with respect to a property for a period of one year or more
				will be considered the sale or lease of real property for the purposes of this
				deduction. Receipts from selling a hunting package are subject to gross
				receipts tax to the extent that the individual components of the package are
				not deductible or exempt from the gross receipts tax pursuant to the Gross
				Receipts and Compensating Tax Act. A person that sells a hunting package that
				consists of taxable and nontaxable components must reasonably allocate the
				receipts based on the value of the individual components. For purposes of this
				section, a "hunting package" may include the following components:
(1) lodging;
(2) meals;
(3) delivery and transportation
				services;
(4) guide
				services;
(5) license to use the
				property;
(6) carcass of the hunted
				animal; or
(7) other services or
				tangible personal property included in the package.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.1 - 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 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.3 - 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 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.5 - 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 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.6 - 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 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.8 - LEASING OF TANGIBLE PERSONAL PROPERTY TO A GOVERNMENTAL AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
A. The receipts
				from the leasing of tangible personal property to a governmental agency are not
				deductible pursuant to Section
				7-9-54
				NMSA 1978. Only receipts from selling tangible personal property to a
				governmental agency are deductible.
B. Example 1: B rents computers to the United
				States for use in New Mexico. B contends that the gross receipts from these
				rentals are deductible for the purpose of computing gross receipts tax. The
				receipts are not deductible. Only receipts from selling tangible personal
				property to the United States are deductible.
C. Example 2: A county election board made
				the decision that in the last election they would use Q's electronic voting
				system. Because the county is small and the system is very new and expensive,
				the parties agreed to lease the equipment. All the installation and supplies
				were provided by Q under the contract. Q deducted the receipts from the
				transaction. The deduction is not allowable under Section
				7-9-54
				NMSA 1978 because this is not a sale of tangible personal property to a
				political subdivision of the state of New Mexico.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.9 - SALE OF SERVICE TO A GOVERNMENTAL AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Receipts from the sale of a service to a
				governmental agency are not deductible pursuant to Section
				7-9-54
				NMSA 1978. Only the receipts from selling tangible personal property to a
				governmental agency are deductible.
B. Example 1: The city contracts with E, an
				employment agency, to provide substitutes for vacationing city secretarial
				employees each summer. E deducts the receipts from the city in computing its
				gross receipts tax liability. This is a sale of services to a political
				subdivision of the state of New Mexico and not a sale of tangible personal
				property. The deduction cannot be allowed.
C. Example 2: B is an attorney who performs
				legal services in New Mexico for various Indian tribes and Indian pueblos. B is
				not an enrolled member of any Indian nation, tribe or pueblo. B's receipts from
				these services are not deductible under Section
				7-9-54
				NMSA 1978. A deduction from gross receipts under Section
				7-9-54
				NMSA 1978 is allowed only for receipts from the sale of tangible personal
				property to the governing bodies of Indian tribes or Indian pueblos for use on
				Indian reservations or pueblo grants. (If the services are performed on the
				tribe's territory, however, they may be exempt under Subsection D of Section
				3.2.4.9 NMAC).
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.10 - CONSTRUCTION PERFORMED FOR A GOVERNMENTAL AGENCY

Current through Register Vol. 35, No. 13, July 16, 2024
A. Except as provided in Subsection B,
				receipts from performing a construction project for a governmental agency are
				receipts derived from performing a service and are not deductible pursuant to
				Section 7 9 54 NMSA 1978. The deduction is not available for construction
				materials whether the materials are billed separately on the same contract as
				the construction services or are billed under a separate contract.
B. Receipts from the sale of construction
				material that is tangible personal property, whether removable or
				non-removable, that is or would be classified for depreciation purposes as
				three-year property, five-year property, seven-year property or 10-year
				property, including indirect costs related to the asset basis, by Section 168
				of the Internal Revenue Code of 1986, as that section may be amended or
				renumbered, are deductible. The amount of the deduction is the asset basis, as
				those terms are defined by the Internal Revenue Code of 1986, as that code may
				be amended or renumbered.
C.
				Example: A contractor enters a contract with a municipality to construct a
				building and to furnish and equip it. Construction is a service, and receipts
				from selling construction, including construction materials except for certain
				tangible personal property, are not deductible under Section
				7-9-54
				NMSA 1978. An analysis is performed to distinguish the value of the
				construction, construction materials and tangible personal property included in
				the project. The contractor's receipts from the sale of tangible personal
				property, whether removable or non-removable, that is or would be classified
				for depreciation purposes as three-year property, five-year property,
				seven-year property or 10-year property including the indirect costs related to
				the asset basis, pursuant to Section 168 of the Internal Revenue Code, as that
				section may be amended or renumbered, are deductible provided the analysis
				includes sufficient information to demonstrate that the requirements of Section
				7-9-54
				NMSA 1978 are met.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.11 - SALE OF MEALS

Current through Register Vol. 35, No. 13, July 16, 2024
The receipts from selling meals on a contract basis to a
				  governmental agency are receipts from selling tangible personal property. Such
				  receipts may be deducted from gross receipts. Receipts of a private supplier
				  from furnishing meals to persons visiting a governmental agency may not be
				  deducted from gross receipts pursuant to Section
				  7-9-54
				  NMSA 1978 unless the meal is sold to that governmental
				  agency.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.12 - LODGING

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts derived from the rental of lodging in hotels,
				  motels, boarding houses, etc. to a governmental agency may not be deducted from
				  gross receipts pursuant to Section
				  7-9-54
				  NMSA 1978 because the rental of such lodging is not the sale of tangible
				  personal property.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.13 - PUBLIC HOUSING AUTHORITY

Current through Register Vol. 35, No. 13, July 16, 2024
Receipts from selling tangible personal property, other than
				  nonfissionable metalliferous ore, to a public housing authority may be deducted
				  from gross receipts pursuant to Section
				  7-9-54
				  NMSA 1978 if the public housing authority is the state of New Mexico or any
				  political subdivision thereof or the United States or any agency or
				  instrumentality thereof.
New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX › Section 3.2.212.14 - LANDSCAPING

Current through Register Vol. 35, No. 13, July 16, 2024
A. Except when the
				landscape items are part of a construction project, receipts from selling and
				installing landscape items such as plants, shrubs, sod, seed, trees, rocks and
				ornaments are receipts from the sale of tangible personal property. Therefore,
				the receipts from the sale and installation of these landscape items pursuant
				to a contract with a governmental agency may be deducted from gross receipts
				pursuant to Section 7 9 54 NMSA 1978. Receipts from selling and installing
				these landscape items as part of a construction project may not be deducted
				pursuant to Section 7 9 54 NMSA 1978. This version of Subsection A of Section
				3.2.212.14 NMAC
				applies to transactions occurring on or after March 2, 2018.
B. Receipts from the installation of
				sprinkler systems are receipts from the performance of a service and are not
				receipts from selling tangible personal property. Therefore, receipts from the
				installation of sprinkler systems for a governmental agency may not be deducted
				from gross receipts pursuant to Section 7 9 54 NMSA 1978.