New Mexico Administrative Code

A. The special rules established in Section 3.5.19.13 NMAC apply to railroads. B. In general. Where a railroad has income from sources both within and without this state, the amount of business income from sources within this state shall be determined pursuant to this section. In…

A. The special rules established in Section 3.5.19.14 NMAC apply to airlines. B. In general. Where an airline has income from sources both within and without this state, the amount of business income from sources within this state shall be determined pursuant to the provisions of…

A. The special rules established in Section 3.5.19.15 NMAC apply to trucking companies. B. In general. As used in this section, the term "trucking company" means a motor common carrier, a motor contract carrier or an express carrier which primarily transports tangible personal pr…

A. Apportionment and allocation. (1) Except as otherwise specifically provided, a financial institution whose business activity is taxable both within and without this state shall allocate and apportion its net income as provided in this section. All items of nonbusiness income (…

A. The following special rules are established in respect to the apportionment of income from television and radio broadcasting by a broadcaster that is taxable both in this state and in one or more other states. B. In general. When a person in the business of broadcasting film o…

The following special rules are established with respect to the apportionment of income derived from the publishing, sale, licensing or other distribution of books, newspapers, magazines, periodicals, trade journals or other printed material. A. In General. Except as specifically…

This part applies to every taxpayer having income which is taxable for income tax purposes both within and without New Mexico.

Section 9-11-6.2 NMSA 1978.

Permanent.

7/15/96, 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 Uniform Division of Income for Tax Purposes Act.

[Reserved.]

A. Section 7-4-19 NMSA 1978 provides that if the allocation and apportionment provisions of Sections 7-4-2 to 7-4-18 NMSA 1978 do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the department may require, in res…

A. If a taxpayer requests any deviation from the statutory allocation and apportionment formula, the taxpayer must submit a written petition to the department with the return. The petition must be accompanied by returns for the taxable year computed on both: (1) the basis of the …

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 every taxpayer having income which is taxable for income tax purposes both within and without New Mexico.

Section 9-11-6.2 NMSA 1978.

Permanent.

1/15/97, 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 Uniform Division of Income for Tax Purposes Act.

[Reserved.]

Regulations issued under the Uniform Division of Income for Tax Purposes Act are applicable to Article IV of the multistate tax compact to the extent they are not inconsistent with the provisions of the multistate tax compact.

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

Any taxpayer electing to apportion income pursuant to Section 7-2-11 NMSA 1978 or Section 7-2A-8 NMSA 1978 and who is subject to the taxing jurisdiction of this state shall allocate all of its net nonbusiness income or loss within or without this state in accordance with Sections…

A. In filing with this state, if the taxpayer departs from or modifies the manner in which income has been classified as business income or nonbusiness income in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent of the m…

This part applies to every taxpayer having income which is taxable for income tax purposes both within and without New Mexico.

Section 9-11-6.2 NMSA 1978.

Permanent.

1/15/97, 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 Uniform Division of Income for Tax Purposes Act.

A. "Allocation" and "allocate" refer to the assignment of nonbusiness income to a particular state. B. "Apportionment" and "apportion" refer to the division of business income between states by the use of a formula containing apportionment factors. C. "Business activity" refers t…

Where a taxpayer elects to apportion income pursuant to Section 7-2-11 NMSA 1978 or Section 7-2A-8 NMSA 1978, if the business activity in respect to any trade or business of a taxpayer occurs both within and without this state, and if by reason of such business activity the taxpa…

If a particular trade or business is carried on by a taxpayer and one or more affiliated corporations, nothing in Sections 7-4-2 to 7-4-19 NMSA 1978 or in Title 3, Chapter 5 NMAC shall preclude the use of a "combined report" whereby the entire business income of such trade or bus…

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

The second test, that of Subsection B of Section 7-4-4 NMSA 1978, applies if the taxpayer's business activity is sufficient to give the state jurisdiction to impose a net income tax by reason of such business activity under the constitution and statutes of the United States. Juri…

For periods beginning on or after January 1, 2020. New Mexico follows the so-called Finnigan approach. This approach determines when a corporation will be deemed to be taxable in New Mexico as well as to the question of when a taxpayer is "taxable in another state" for purposes o…

This part applies to every taxpayer having income which is taxable for income tax purposes both within and without New Mexico.

Section 9-11-6.2 NMSA 1978.

Permanent.

1/15/97, 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 Uniform Division of Income for Tax Purposes Act.

[Reserved.]

A taxpayer's income from business activity is taxable without this state if such taxpayer, by reason of such business activity, is taxable in another state within the meaning of Section 7-4-4 NMSA 1978. A taxpayer is taxable within another state if it meets either one of two test…

A. A taxpayer is "subject to" one of the taxes specified in Subsection A of Section 7-4-4 NMSA 1978 if it carries on business activity in such state and such state imposes or has the ability to impose such a tax thereon. Any taxpayer which asserts that it is subject to one of the…

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 every taxpayer having income which is taxable for income tax purposes both within and without New Mexico.

Section 9-11-6.2 NMSA 1978.

Permanent.

1/15/97, unless a later date is cited at the end of a section, in which case the later date is the effective date.