SALES & USE TAX EXEMPTIONS    
     
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New Mexico - Sales and Use Tax Exemptions and Exemption Certificates

Gross receipts tax (Sales Tax) is imposed on persons engaging in business in New Mexico. Sellers are solely liable for payment of the gross receipt tax; they are not “collectors” on behalf of the state.

NEW MEXICO EXEMPTIONS: Gross receipts can be taxable, exempt or/and deductible. Exemptions from gross receipts tax are receipts which are not taxable and do not have to be reported.

Some of the exemptions are: agricultural, athletic facility surcharge, disabled street vendor, food stamps, governmental entity, insurance company and bail bondsman, interest and dividend, interstate telecommunications services, isolated sale, mobile telecommunications services, municipal event center surcharge, nonprofit organization, oil, natural gas and mineral, out-of-state services, racetrack, school event services, stadium, textbook, vehicle, boat and fuel, wage.(NMSA §§7-9-12 to 7-9-41.4, FYI-105)

NEW MEXICO DEDUCTIONS: A Deduction from gross receipts, like an exemption, results in an amount not subject to tax. However, the seller must report deductions on the CRS-1 return. NM Department of revenue requires taxpayers to retain substantiation in their records when claiming a deduction from gross receipts. A customer must provide a nontaxable transaction certificate (NTTC) to a vendor as evidence of a deductible transaction. In the absence of a NTTC the vendor must pay gross receipts tax on the transaction. Some of the enumerated deductions are for receipts from the sale of advanced energy, agricultural implements, aircraft, medical supplies and services, property for resale, special fuel and more. (NMSA §§7-9-43 to 7-9-114, FYI-105)

CAUTION: Sales tax exemptions mentioned above are very briefly described. Please see the exemption statute and the applicable regulations for details. Transactions that do not meet the requirements of the exemption statute and its applicable regulations do not qualify for the sales tax exemptions.

NEW MEXICO CERTIFICATES: FYI -204 provides general information on the issuance of nontaxable transaction certificates(NTTCs) by the New Mexico Taxation and Revenue Department and their appropriate use by taxpayers.

Execute Nontaxable Transaction Certificate (NTTC)- Online
OR
Mail Form ACD-31050- Application for Nontaxable Transaction Certificates (NTTCs)
to the New Mexico Taxation and Revenue Department, P.O. Box 5557, Santa Fe, New Mexico 87502-5557.
(NOTE : The department will only issue a maximum of five NTTCs)

List of certificates issued by Department of Revenue.
    • Type 2: for tangibles for resale, lease or re-lease, or for purchase by manufacturer
    • Type 5: for services for resale, for export, or for services performed on manufactured products
    • Type 6: for construction contractor’s purchase of construction materials and construction services
    • Type 9: for purchase of tangible personal property by New Mexico or United States governments, 501(c)(3) organization, or credit unions
    • Type 15: for tangible personal property purchased by qualified federal contractors
    • Type 16: for sales of property, services and leases to qualified film production companies, accredited foreign missions, and their accredited members
    • Type OSB NTTCs are issued to registered New Mexico sellers/lessors to execute to Out-of-State Buyers who are not registered with the department, but who will resell tangible personal property outside of New Mexico

    • Uniform Sales and Use Tax Exemption Certificate ­Multijurisdiction : New Mexico allows sellers to accept the MTC Uniform Sales and Use Tax Exemption Certificate if the buyer is not required to be registered in New Mexico, and the buyer is purchasing tangible personal property for resale or incorporation as an ingredient of component part of a manufactured product.

    • Border States Uniform Sale for Resale Certificate : The Border States Uniform Sale for Resale Certificate is issued by the Border States' Caucus and is acceptable for sales for resale made to Arizona, California, Oklahoma, Texas, Utah and the United States of Mexico sellers or manufacturers.
 
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