New Mexico Administrative Code

The objective of this part is to interpret, exemplify, implement and enforce the provisions of the Gross Receipts and Compensating Tax Act.

[Reserved.]

The governmental gross receipts tax is imposed only on agencies, institutions, instrumentalities and political subdivisions of the state of New Mexico. The tax is not imposed on any other person.

A. On and after July 1, 1992, the governmental gross receipts tax does not apply to receipts of any entity primarily engaged in providing health care services if the entity is licensed by the New Mexico department of health. B. Examples of entities providing health care services:…

Taxation and Revenue Department, Joseph M. Montoya Building, 1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM 87504-0630

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 Secti…

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 no…

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 sal…

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 fr…

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 subcontracto…

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…

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 t…

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 t…

This part applies to each person engaging in business in New Mexico.

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 …

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-rela…

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.…

Construction staking is a construction service.

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 al…

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 hir…

Section 9-11-6.2 NMSA 1978.

Permanent.

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.

The objective of this part is to interpret, exemplify, implement and enforce the provisions of the Gross Receipts and Compensating Tax Act.

[RESERVED]

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 def…

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…

Taxation and Revenue Department, Joseph M. Montoya Building, 1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM 87504-0630.

A. A buyer who purchases and improves real property, other than the buyer's residence, 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 cons…

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.

A. Receipts from leasing tangible personal property are not receipts from leasing real property and may not be deducted from taxable gross receipts pursuant to Section 7-9-53 NMSA 1978. B. Example 1: The receipts from leasing advertising signs which are placed or implanted in rea…

The following examples illustrate the application of Section 7-9-53 NMSA 1978. A. Example 1: 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 …

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. Rece…

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…

A. Receipts of an assisted living facility received from its residents are receipts from the leasing of real property, receipts for providing services, and receipts from selling tangible personal property. (1) The portion of receipts attributable to the lease of real property, in…

This part applies to each person engaging in business in New Mexico.

Section 9-11-6.2 NMSA 1978.

Permanent.

September 24, 2024, unless a later date is cited at the end of a section, in which case the later date is the effective date.

The objective of this part is to interpret, exemplify, implement and enforce the provisions of the Gross Receipts and Compensating Tax Act.

As used in Section 7-9-53 NMSA 1978 and regulations under 3.2.211 NMAC the following terms are defined as such: A. "Assisted living facility" means a facility that provides dwelling units for residents, and which includes common rooms and other facilities appropriate for the prov…

A. Change of name of facility: The nature of the property determines whether the deduction allowed by Section 7-9-53 NMSA 1978 applies. The operator of a hotel, motel, rooming house, campground, guest ranch, trailer park or other facility which operates in a manner similar to the…

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 valu…

Taxation and Revenue Department, Joseph M. Montoya Building, 1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM 87504-0630

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 w…

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…