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 "manufacturing service" is the service of combining or processing components or materials owned by another.

A. Receipts from the sale of the service of plating are deductible from gross receipts if the sale is made to a person engaged in the business of manufacturing and the buyer delivers a nontaxable transaction certificate (nttc). B. The buyer delivering the nttc must have the servi…

Hauling components or materials for a person engaged in the manufacturing business is not a manufacturing service within the meaning of Section 7-9-75 NMSA 1978. The hauler is neither combining nor processing these items; therefore, the manufacturer may not issue to the hauler a …

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 following example illustrates the application of Section 7-9-77 NMSA 1978. B. Example: Y charters an airplane from X, an out-of-state airplane dealer. The charter is for one month. After one week Y decides to buy the airplane. X allows Y a "trade-in" for the remaining thre…

As transportation costs paid by the seller to the carrier are an element of the sales price of the property, when equipment not required to be registered under the Motor Vehicle Code is purchased outside New Mexico and is brought into New Mexico for use, the value of the equipmen…

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 the business of leasing tangible personal property 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.]

The value of tires, engine repair parts and similar items used by a lessor in the maintenance of vehicles held for lease or already leased may be deducted in computing compensating tax if the following three conditions are met: A. the parts are used by the lessor on vehicles held…

The following examples illustrate the application of Section 7-9-78 NMSA 1978: A. Example 1: E, a New Mexico corporation, is solely engaged in the business of leasing electric typewriters to business establishments in New Mexico. E purchases a typewriter in Texas to hold for leas…

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

A. When several organizations jointly conduct a fundraising event, each participating organization receiving gross receipts from the event has conducted a fundraising event. B. Example 1: A 501(c)(8) state organization and each of its four New Mexico lodges together conduct a fun…

A. A fundraising event must be of limited duration. A recurring, regularly scheduled activity, or any portion of a regularly scheduled activity, is not a fundraising event and the receipts are not deductible under Section 7-9-85 NMSA 1978. A fundraising event must have a specific…

A. Each organization may deduct under Section 7-9-85 NMSA 1978 the receipts of two fundraising events conducted during a calendar year. If an organization conducts more than two fundraising events during a calendar year, the first two fundraising events will be presumed to be tho…

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.

A. For the purposes of Section 7-9-85 NMSA 1978 and subject to the limitation set forth in Part 3.2.239 NMAC, a "fundraising event" is an activity undertaken by an organization for the purpose of acquiring funds that will be used in the conduct of the organization's exempt activi…

A. No organization described in Section 501(c)(3) of the Internal Revenue Code may claim the deduction provided by Section 7-9-85 NMSA 1978 but the receipts of 501(c)(3) organizations, except for unrelated business income, are exempt from gross receipts tax under Section 7-9-29 N…

The deduction provided by Section 7-9-85 NMSA 1978 does not apply to the receipts from more than two (2) fundraising events during any calendar year.

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

Taxpayers may not deduct under Section 7-9-92 NMSA receipts that may be exempted or deducted under other sections of the Gross Receipts and Compensating Tax Act, including: A. receipts of a government exempted from the gross receipts tax by Section 7-9-13 NMSA 1978; B. receipts s…

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

Section 9-11-6.2 NMSA 1978.

Permanent.

1/31/05, 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.

For purposes of Section 7-9-92 NMSA 1978, the definitions of "food", "food retail store" and "home consumption" are the definitions set forth in the federal Food Stamp Act of 1964, codified at 7 USC 2011 et seq., as amended or renumbered and any regulations, rules and administrat…

A. A taxpayer that is authorized to accept food stamps under the federal Food Stamp Act is presumed to be a retail food store for the purpose of Section 7-9-92 NMSA 1978 for tax periods during which the taxpayer is authorized to accept food stamps. A taxpayer that meets the defin…

Receipts from the sale of food for which a taxpayer could have accepted food stamps are receipts from the sale of food for purposes of Section 7-9-92 NMSA 1978.

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

A. For purposes of Section 7-9-93 NMSA 1978, an "independent practice association" means an entity which acts as an administrative intermediary between health care practitioners and other managed health care providers or health care insurers. Independent practice associations gen…

Receipts of a third party for administering a health insurance or medical plan are not deductible under Section 7-9-93 NMSA 1978.

Receipts of a health care practitioner other than from payments by a managed health care provider or health care insurer for commercial contract services or medicare part C services provided by the health care practitioner are not deductible under Section 7-9-93 NMSA 1978. Receip…

A corporation, unincorporated business association, or other legal entity may deduct under Section 7-9-93 NMSA 1978 its receipts from managed health care providers or health care insurers for commercial contract services or medicare part C services provided on its behalf by healt…