New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 1 - GENERAL PROVISIONS › Section 3.2.1.7 - DEFINITIONS

Current through Register Vol. 35, No. 13, July 16, 2024
The terms defined in 3.2.1.7 NMAC apply throughout 3.2
				  NMAC.
A.
Benefit:
A
				"benefit" is any consideration to either party. "Benefit" is not limited to
				profits, pecuniary gains, or any particular kind of advantage.
B.
Consideration:
"consideration" is any benefit, interest, gain or advantage to one party,
				usually the seller, or any detriment, forbearance, prejudice, inconvenience,
				disadvantage, loss of responsibility, act or service given, suffered, or
				undertaken by the other party, usually the buyer.
C.
Detriment:
A "detriment" is a
				forbearance of either party of a right which the party is entitled to exercise
				or any consideration flowing from either party, not limited to payment of money
				or transfer of property.
D.
Digital good:
A "digital good" means a digital product delivered
				electronically, including software, music, photography, video, reading
				material, an application and a ringtone. A digital good generally takes the
				form of a license to use and which property is stored, conveyed, and used in a
				digital or electronic format. Digital goods are generally intangible property
				for purposes of the Gross Receipts and Compensating Tax Act.
E.
Financial corporations:
(1) A financial corporation is any
				corporation primarily dealing in moneyed capital and in substantial competition
				with commercial banks.
(2) Example
				1: FC is a corporation which is primarily engaged in the following activities:
(a) buying and selling mortgages on real
				estate,
(b) initiating mortgages on
				real estate and selling these mortgages, and
(c) servicing mortgages. FC is a financial
				corporation because it is primarily dealing in moneyed capital and is in
				substantial competition with commercial banks.
(3) Example 2: IA is an insurance agency
				which, as an adjunct of its primary business, loans money to finance premiums.
				IA is not a financial corporation because it is not primarily dealing in
				moneyed capital and it is not in substantial competition with commercial
				banks.
(4) Example 3: A corporation
				which receives a commission on sales of money orders to its customers as an
				adjunct of its primary business is not a financial corporation within the
				meaning of Subsection C of Section
				7-9-3
				NMSA 1978 simply because it engages in this business activity.
(5) Example 4: A corporation which is engaged
				in the following activities is not a financial corporation because it is not
				primarily dealing in moneyed capital and is not in substantial competition with
				commercial banks:
(a) acting as an investment
				advisor to a mutual fund and others and receiving a fee for such
				services;
(b) acting as principal
				underwriter for the same mutual fund as in Paragraph (2) of Subsection E of
				3.2.1.7 NMAC above and receiving a fixed percentage of the selling price of the
				securities sold as a commission or fee; or
(c) issuing a weekly stock analysis report as
				an advisory service, receiving for this service payment in the form of
				subscription fees.