Chapter 7 — Chapter 7

respect to certain tax liabilities. The department shall take no action to enforce collection of gross receipts tax for a tax period prior to July 1, 2019 on persons engaging in business if that person: A. lacked physical presence in the state; and B. did not report taxable gross…

providers. A. The secretary is authorized to provide information, upon which taxpayers may rely, as to the taxability of gross receipts from particular transactions, including taxability matrices, and is further authorized to establish standards for the certification of certified…

used in interstate commerce. Receipts from the rental or leasing of vehicles used in the transportation of passengers or property for hire in interstate commerce under the regulations or authorization of any agency of the United States may be deducted. History: 1953 Comp., § 72-1…

That portion of the receipts of a seller that is represented by a trade-in of tangible personal property of the same type being sold, except for the receipts represented by a trade-in of a manufactured home, may be deducted from gross receipts. History: 1953 Comp., § 72-16A-14.28…

ANNOTATIONS Repeals. — Laws 1993, ch. 30, § 28 repealed 7-9-72 NMSA 1978, as amended by Laws 1992, ch. 100, § 9, relating deductions for special fuel receipts, effective June 18, 1993. For provisions of former section, see the 1992 NMSA 1978 on NMOneSource.com.

sale of prosthetic devices. Receipts from selling prosthetic devices may be deducted from gross receipts or from governmental gross receipts if the sale is made to a person who is licensed to practice medicine, osteopathic medicine, dentistry, podiatry, optometry, chiropractic or…

hospitals. A. Sixty percent of the receipts of hospitals licensed by the department of health may be deducted from gross receipts; provided that this deduction may be applied only to the taxable gross receipts remaining after all other appropriate deductions have been taken. B. S…

receipts tax; prescription drugs; oxygen; cannabis. A. Receipts from the sale of prescription drugs and oxygen and oxygen services provided by a licensed medicare durable medical equipment provider and cannabis products that are sold in accordance with the Lynn and Erin Compassio…

receipts tax; durable medical equipment; medical supplies. A. Prior to July 1, 2030, receipts from the sale or rental of durable medical equipment and medical supplies may be deducted from gross receipts and governmental gross receipts. B. The purpose of the deduction provided in…

modifications for medicaid recipients. A. Prior to July 1, 2034, receipts of an eligible provider for environmental modifications reimbursed by the medical assistance division may be deducted from gross receipts. B. As used in this section: (1) "eligible provider" means a provide…

History: 1953 Comp., § 72-16A-14.31, enacted by Laws 1971, ch. 217, § 2; 1975, ch. 322, § 1; 1994, ch. 94, § 2; 1978 Comp., § 7-9-74, repealed by Laws 2025, ch. 130, § 155.

performed directly on product manufactured. Receipts from selling the service of combining or processing components or materials may be deducted from gross receipts if the sale is made to a person engaged in the business of manufacturing who delivers a nontaxable transaction cert…

paid by certain entities. Receipts of travel agents derived from commissions paid by maritime transportation companies and interstate airlines, railroads and passenger buses for booking, referral, reservation or ticket services may be deducted from gross receipts. History: 1953 C…

homes. Receipts from the resale of a manufactured home may be deducted from gross receipts if the sale is made of a manufactured home that was subject to the gross receipts, compensating or motor vehicle excise tax upon its initial sale or use in New Mexico. The seller shall reta…

Receipts from the leasing or licensing of theatrical and television films and tapes to a person engaged in the business of providing public or commercial entertainment from which gross receipts are derived may be deducted from gross receipts. History: 1978 Comp., § 7-9-76.2, enac…

A. Fifty percent of the value of agricultural implements, farm tractors, aircraft not exempted under Section 7-9-30 NMSA 1978 or vehicles that are not required to be registered under the Motor Vehicle Code [Chapter 66, Articles 1 through 8 NMSA 1978] may be deducted from the valu…

care services. A. Receipts of a health care practitioner or an association of health care practitioners from payments by the United States government, or any agency thereof, or from a medicare administrative contractor for medical and other health services provided by a health ca…

a licensed child care assistance program; pre-kindergarten services by for-profit pre-kindergarten providers. A. Receipts from the sale of child care assistance services by a taxpayer pursuant to a contract or grant with the early childhood education and care department to provid…

property for leasing. A. Except as provided otherwise in Subsection B of this section, the value of tangible personal property may be deducted in computing the compensating tax due if the person using the tangible personal property: (1) is engaged in a business which derives a su…

equipment. The value of equipment and replacement parts for that equipment may be deducted in computing the compensating tax due if the person uses the equipment and replacement parts to enrich uranium in a uranium enrichment plant. History: Laws 1999, ch. 231, § 4.

A. If, on property or services bought outside this state, a gross receipts, sales, compensating or similar tax has been levied by another state or political subdivision thereof on the transaction by which the person using the property or services in New Mexico acquired the proper…

If on services performed outside the state a gross receipts sales or similar tax has been levied by another state or a political subdivision thereof and such tax has been paid, the amount of the tax paid may be credited against any gross receipts tax due this state on the receipt…

History: Laws 2007, ch. 204, § 9; repealed by Laws 2025, ch. 130, § 155.

A. To prevent evasion of the compensating tax and the duty to collect it, it is presumed that property bought or sold by any person for delivery into this state is bought or sold for a taxable use in this state. B. In determining the amount of compensating tax due on the use of p…

ANNOTATIONS Repeals. — Laws 1982, ch. 18, § 27, repealed 7-9-80 NMSA 1978, enacted by Laws 1975, ch. 263, § 9, relating to a credit for electrical energy tax or similar tax on generation of electricity which may be applied against any gross receipts tax due, effective July 1, 198…

ANNOTATIONS Repeals. — Laws 1989, ch. 115, § 6A repealed 7-9-80.1, as enacted by Laws 1981, ch. 39, § 114, relating to tax credit during period of economic adjustment, effective July 1, 1989.

ANNOTATIONS Repeals. — Laws 1989, ch. 115, § 6A repealed 7-9-81 NMSA 1978, as enacted by Laws 1966, ch. 47, § 19, relating to cross references, effective July 1, 1989.

ANNOTATIONS Repeals. — Laws 2004, ch. 116, § 7 repealed 7-9-82 NMSA 1978, as enacted by Laws 1986, ch. 20, § 68, relating to a municipal gross receipt tax credit equal to one-half of one percent, effective January 1, 2005. For provisions of former section, see the 2003 NMSA 1978 …

Forty percent of the receipts from the sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department may be deducted from gross receipts. History: Laws 1993, ch. 364, § 1; 2003, ch. 214, § 2; 2006, ch. 51, § 1; 2011, ch. 74, § 1…

Forty percent of the value of the fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department may be deducted in computing the compensating tax due. History: Laws 1993, ch. 364, § 2; 2003, ch. 214, § 3; 2006, ch. 51, § 2; 2011, ch. 74…

fundraisers. Receipts from not more than two fundraising events annually conducted by an organization that is exempt from the federal income tax as an organization described in Section 501(c), other than an organization described in Section 501(c)(3), of the United States Interna…

History: Laws 1995, ch. 80, § 1; 2003, ch. 127, § 3; repealed by Laws 2023, ch. 85, § 28.

Receipts of a lottery game retailer from selling lottery tickets pursuant to the New Mexico Lottery Act [Chapter 6, Article 24 NMSA 1978] may be deducted from gross receipts. History: Laws 1995, ch. 155, § 35.

ANNOTATIONS Repeals. — Laws 2003, ch. 414, § 3 repealed 7-9-88 NMSA 1978, as enacted by Laws 1997, ch. 64, § 2, relating to credit; gross receipts tax; tax paid to Santa Clara pueblo. For provisions of former section, see the 2002 NMSA 1978 on NMOneSource.com. For similar present…

A. If on a taxable transaction taking place on tribal land a qualifying gross receipts, sales or similar tax has been levied by the tribe, the amount of the tribe's tax may be credited against gross receipts tax due this state or its political subdivisions pursuant to the Gross R…

receipts from selling coal. A. If on receipts from selling coal severed from Navajo Nation land a qualifying gross receipts, sales, business activity or similar tax has been levied by the Navajo Nation, the amount of the Navajo Nation tax paid and not refunded may be credited aga…

diplomats and missions. Receipts from selling or leasing property to, or from performing services for, an accredited foreign mission or an accredited member of a foreign mission may be deducted from gross receipts when a treaty in force to which the United States is a party requi…

Any person in New Mexico initially using property in New Mexico on the value of which compensating tax is payable but has not been paid is liable to the state for payment of the compensating tax, but this liability is discharged if the buyer has paid the compensating tax to the s…

hexafluoride and enrichment of uranium. A. Receipts from selling uranium hexafluoride and from providing the service of enriching uranium may be deducted from gross receipts. B. The deduction provided by this section shall be included in the tax expenditure budget pursuant to Sec…

certain organizations and governmental agencies. A. Except as provided otherwise in Subsection D of this section, the value of tangible personal property that is removed from inventory and contributed to organizations that have been granted exemption from the federal income tax b…

A. Receipts from the sale of food by a retail food store that are not exempt from gross receipts taxation and are not deductible pursuant to another provision of the Gross Receipts and Compensating Tax Act may be deducted from gross receipts. The deduction provided by this sectio…

provided by health care practitioner or association of health care practitioners. A. Receipts of a health care practitioner or an association of health care practitioners for commercial contract services or medicare part C services paid by a managed care organization or health ca…

acquisition programs. A. Receipts from transformational acquisition programs performing research and development, test and evaluation at New Mexico major range and test facility bases pursuant to contracts entered into with the United States department of defense may be deducted …

personal property; limited period. Receipts from the sale at retail of the following types of tangible personal property may be deducted if the sale of the property occurs during the period beginning at 12:01 a.m. on the last Friday in July and ending at midnight on the following…

History: Laws 2005, ch. 104, § 26; repealed by Laws 2020, ch. 80, § 14.

History: Laws 2007, ch. 361, § 7; repealed by Laws 2019, ch. 270, § 56.

provided in a hospital. A. A licensed medical doctor, licensed osteopathic physician or association of licensed medical doctors or osteopathic physicians may claim a credit against gross receipts taxes due in an amount equal to the value of unpaid qualified health care services. …

A. Prior to July 1, 2027, a taxpayer that is a national laboratory that provides technology readiness assistance to a business that is registered to do business in New Mexico and has licensed a technology from the national laboratory or is a participant in a cooperative research …

purchases by or on behalf of the state. Receipts from the sale of property or services purchased by or on behalf of the state from funds obtained from the forfeiture of financial assurance pursuant to the New Mexico Mining Act [Chapter 69, Article 36 NMSA 1978] or the forfeiture …

biomass materials. A. The value of a biomass boiler, gasifier, furnace, turbine-generator, storage facility, feedstock processing or drying equipment, feedstock trailer or interconnection transformer may be deducted in computing the compensating tax due. B. The value of biomass m…