New Mexico Administrative Code

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.

A. "Lots" defined: (1) As used in Section 7-9-65 NMSA 1978 the term "lots" means a parcel or single article which is the subject matter of a separate sale or delivery, whether or not it is sufficient to perform the contract. (2) Example: H sells P fifteen tons of hydrochloric aci…

Mud used in the drilling of wells is not a chemical or reagent.

A. For purposes of Section 7-9-65 NMSA 1978, natural gas wells are oil wells, since they produce condensate or oil as a by-product. Receipts from the sale of chemicals or reagents for use in acidizing such wells may be deducted from the seller's gross receipts. B. For purposes of…

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

A. The receipts of New Mexico stockbrokers or mutual fund salespeople, who are independent contractors, from commissions from the sale of stocks, bonds, or mutual fund shares are subject to the gross receipts tax. B. Receipts of out-of-state correspondents of New Mexico stockbrok…

The receipts of an auctioneer selling property, on a commission or a fee basis, are subject to the gross receipts tax to the extent that the deduction provided by Section 7-9-66 NMSA 1978 does not apply. The receipts of a person selling property through an auctioneer who sells pr…

Receipts derived from commissions on sales of tangible personal property, the receipts from which sales are either exempted from the gross receipts tax or deductible from gross receipts, may be deducted from gross receipts.

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. Receipts derived from commissions on sales of real property or intangible property such as negotiable instruments and stocks and bonds or privileges, such as licenses and tickets, are not deductible under Section 7-9-66 NMSA 1978. B. Where a real estate brokerage commission is…

A. Receipts from commissions for services rendered in New Mexico paid to nonemployee agents of freight companies, bus transportation firms and the like are subject to the gross receipts tax. B. The indicia outlined in Section 3.2.105.7 NMAC will be considered in determining wheth…

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

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 portion of a real estate commission which is deductible is calculated using the following formula: Deductible commission equals total real estate commission times a fraction, the numerator of which is the taxable receipts from the sale of the property and the denominator o…

A. No portion of a real estate commission is deductible if the total receipts from the sale of the real property are either deductible or exempt from gross receipts tax. B. Example 1: A real estate broker receives a $6,000 commission on the sale of a home by the owner. The receip…

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

A. The deduction for refunds and allowances made to buyers is applicable to taxpayers reporting gross receipts or governmental gross receipts on either a cash or an accrual basis, but the deduction for uncollectible accounts is available only to taxpayers who report gross receipt…

A person reporting gross receipts or governmental gross receipts on an accrual basis is entitled to deduct amounts written off the books as an uncollectible debt for the amount credited to the buyer from whom the property was repossessed. Receipts from a subsequent sale of the sa…

A. When a check is received, deposited, dishonored and returned, and not subsequently honored within the same reporting period, the taxpayer has no gross receipts with respect to the check. If the check is received within one reporting period, gross receipts are reported with res…

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. Trading stamps are not allowances within the meaning of Section 7-9-67 NMSA 1978. Trading stamps represent promotional services and may not be deducted from gross receipts or governmental gross receipts pursuant to Section 7-9-67 NMSA 1978. B. Example: B is in the business of …

A. Receipts from selling soft drinks include amounts received in the form of refundable deposits on bottles, cartons and cases. B. The amount of deposits refunded to purchasers of soft drinks may be deducted from gross receipts or governmental gross receipts under Section 7-9-67 …

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

A manufacturer's warranty may be distinguished from an automotive service contract, as that term is defined in Subsection C of Section 3.2.1.16 NMAC, on which the manufacturer is the promisor by the characterization used by the manufacturer so long as no separate charge is made t…

The dealer's receipts from the "co-payment" or "deductible" amount paid to the dealer by the purchaser as required by some manufacturers' warranties are gross receipts and not deductible from gross receipts under Section 7-9-68 NMSA 1978 since the receipts from the purchaser are …

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.]

If a dealer subcontracts with another person (subcontractor) to fulfill the dealer's warranty obligation of the manufacturer of the property, the receipts of the subcontractor may not be deducted pursuant to Section 7-9-68 NMSA 1978. The subcontractor is not the dealer of record.

A. A person authorized by the manufacturer to repair tangible personal property under the warranty of the manufacturer is a "dealer" for the purposes of Section 7-9-68 NMSA 1978. The person therefore may deduct receipts received directly from the manufacturer for parts and labor …

Taxation and Revenue Department, Joseph M. Montoya Building, 1150 South St. Francis Drive, P.O. Box 630, Santa Fe NM 87504-0630