New Mexico Administrative Code

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.

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 subdiv…

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 sal…

A. The receipts of a dental laboratory from selling dentures to the New Mexico state penitentiary for use by inmates are receipts from selling tangible personal property to the state of New Mexico and may be deducted from gross receipts where: (1) a dentist not associated with a …

Receipts of a photographer from sales of photographs taken by the photographer to school children or parents of school children are subject to gross receipts tax even if a public school makes actual payment to the photographer from a "picture fund" made up of contributions of sch…

Receipts from selling tangible personal property, other than nonfissionable metalliferous ore or that which will become an ingredient or component part of a construction project, to nonappropriated fund activities of military services may be deducted from gross receipts pursuant …

The receipts of a pharmacist from selling drugs to welfare patients may be deducted from gross receipts in a situation in which the health and environment department remits to the pharmacist the wholesale cost of the drug sold and a fixed amount per prescription filled. Such rece…

A. A seller must be able to prove that payment for the tangible personal property sold was made from the United States, or any agency or instrumentality thereof, or from the state of New Mexico, or any political subdivision thereof, or from the governing body of any Indian nation…

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

A. Receipts from selling tangible personal property which is or will be incorporated into a metropolitan redevelopment project created under the Metropolitan Redevelopment Code in New Mexico are subject to gross receipts tax. B. A seller of tangible personal property which is or …

A. Receipts from sales of tangible personal property to an agency of the United States government or the state of New Mexico are deductible from the gross receipts of the seller when paid for by a credit or procurement card issued to the United States government or the state of N…

A. For the purposes of this section, a "bond project" is an arrangement entered into under the authority of the Industrial Revenue Bond Act, the County Industrial Revenue Bond Act or similar act in which a private person agrees: (1) to arrange for the constructing and equipping o…

Licenses are intangible property. Receipts from selling licenses are not deductible under Section 7-9-54 NMSA 1978.

A. Because it is a service, receipts from developing or selling custom software for governmental entities are not deductible under Section 7 9 54 NMSA 1978. B. Example 1: X contracts with the United States to develop software to test certain devices which the United States is con…

A. Federal courts have ruled that credit unions chartered under the Federal Credit Union Act are instrumentalities of the federal government. See United States v. Maine, 524 F. Supp. 1056 (D. Me. 1981) and United States v. Michigan, 851 F.2d 803 (6th Cir. 1988). Therefore persons…

Since the American National Red Cross chartered pursuant to 36 U.S.C. 300101 et seq. is an instrumentality of the federal government, persons who sell tangible personal property to the American National Red Cross are entitled to the deduction provided by Section 7-9-54 NMSA 1978.

Gases, such as natural gas, nitrogen, carbon dioxide, helium, propane, oxygen, acetylene and nitrous oxide, are tangible personal property. Therefore receipts from selling gases to a governmental agency may be deducted from gross receipts under Section 7-9-54 NMSA 1978.

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. 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 U…

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 agenc…

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

A. Transporting forest fire fighting materials: The receipts from transporting forest firefighting materials, such as slurry, in airplanes from a point inside New Mexico to a point outside New Mexico are deductible from gross receipts. B. Star route contractors: (1) A person hold…

Receipts from the sale of a printed report of oil and gas leasing activities, which is not a "newspaper" as that term is used in Section 7-9-64 NMSA 1978, to nonresidents of New Mexico where delivery is made out-of-state by the seller's vehicle, U.S. mail or common carrier are re…

A. Receipts of New Mexico sellers from sales of property to New Mexico residents who request that delivery be made out of state are not receipts from transactions in interstate commerce and are not deductible under Section 7-9-55 NMSA 1978. B. Receipts of New Mexico sellers from …

A. Receipts of a provider of a digital platform that displays digital adverting services, whose digital platform may be accessed or viewed within New Mexico, from the sale of advertising services to advertisers within and without New Mexico are subject to the gross receipts tax. …

This part applies to all persons transmitting messages or conversations by radio, selling radio or television broadcast time, advertising or otherwise engaging in interstate commerce.

Section 9 -11-6.2 NMSA 1978.

Permanent.

November 29, 2022, 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.

A. "Regional" defined: As used in Section 7-9-55 NMSA 1978, a "regional" seller or advertiser is a person who sells from locations in more than one state or who purchases advertising services intended to be heard or viewed in more than one state. A person is deemed to sell from l…

Receipts of a newspaper or magazine which is published within New Mexico and circulated to subscribers within and without New Mexico from the sale of advertising space to advertisers within and without New Mexico are subject to the gross receipts tax. The gross receipts tax levie…

A. Microwave carriers: The receipts of a microwave carrier from relaying television signals for another party for a fee from a point of origin outside this state to a point of destination within this state may be deducted from gross receipts even though a portion of those receipt…

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

When damage occurs to personal effects during transit by an interstate carrier and the carrier is required to hire a repair facility to restore the damaged articles, receipts of the repair facility are not deductible pursuant to Section 7-9-56 NMSA 1978. Such receipts are not fro…

A. A "public distribution warehouse center" is a person who is engaged in the business of storing and distributing the property of others and who performs the following package of services for at least the majority of its clients: (1) stores tangible personal property owned by th…

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

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. The deduction provided by Subsections A and B of Section 7-9-56 NMSA 1978 apply to the receipts of persons who are not a party to a single contract for the transportation of property or persons in interstate commerce but who are selling such services to the person who is oblig…

A. Commissions to a person in New Mexico for originating interstate transportation of persons are not deductible pursuant to either Section 7-9-56 NMSA 1978 or Section 7-9-66 NMSA 1978. Such commissions are a fee for service rendered in New Mexico. B. Example: A, an airline compa…

Taxation and Revenue Department, Joseph M. Montoya Building, 1150 South St. Francis Drive, P.O. Box 630, Santa Fe NM 97504-0630.

A. As used in Section 7-9-57 NMSA 1978, "other evidence acceptable to the secretary" includes invoices, contracts, photostatic copies of checks and letters which show that the sale is to an out-of-state buyer and which indicate that the initial use of the product of the service d…