New Mexico Register / Volume XXXII, Issue 13 /July 7, 2021
NOTICE
OF PROPOSED RULEMAKING AND PUBLIC RULE HEARING
The New
Mexico Taxation and Revenue Department hereby gives notice as required under
Section 14-4-5.2 NMSA 1978 and 1.24.25.11 NMAC that it proposes to repeal and
repeal and replace a rule on gross receipts tax and services as authorized by Section
9-11-6.2 NMSA 1978:
Summary
of Proposed Changes:
The New
Mexico Taxation and Revenue Department proposes to repeal and replace the
following rule:
Gross
Receipts and Compensating Tax Act, Section 7-9-3.5 NMSA 1978
3.2.1.18 NMAC - Gross Receipts; Services
The New
Mexico Taxation and Revenue Department proposes to enact the following rules:
Gross
Receipts and Compensating Tax Act, Section 7-9-3.5 NMSA 1978
[NEW] 3.2.1.21 NMAC - Tax on Gross
Receipts from Services Performed Outside the State
[NEW] 3.2.1.23 NMAC - “Performance
of a service,” “product of the service,” “initial use”, and “delivery”;
presumptions
Gross
Receipts and Compensating Tax Act, Section 7-9-79.1 NMSA 1978
[NEW] 3.2.300.9 NMAC - Credit for
Tax Paid on Services Performed Outside the State
The New
Mexico Taxation and Revenue Department proposes to repeal the following rules:
Gross
Receipts and Compensating Tax Act, Section 7-9-57 NMSA 1978
3.2.215.11 NMAC - Product of Service
Which is Reviewed and Accepted Outside of New Mexico
but Initially Used in New Mexico
3.2.215.12 NMAC - General Examples
Technical
Information: No
technical information was consulted in drafting these proposed rule changes.
Purpose
of Proposed Rule: The proposed
rule is repealed and replaced to align with current law and provide guidance on
the applicability of gross receipts tax on receipts from certain services.
Notice
of Public Rule Hearing: A public hearing will be held on the proposed rule changes on August 10,
2021 at 10:00AM through the internet, email, and telephonic means in response
to concerns surrounding COVID-19 and in accordance with Executive Order
2020-004, Declaration of a Public Health Emergency, and the March 12, 2020
Public Health Emergency Order to Limit Mass Gatherings Due to COVID-19.
The Public
Hearing will be accessible via WebEx https://nm-tax.webex.com/nm-tax/j.php?MTID=m89c40dd3456122210f5483dfb3e9d5b2. Meeting number (access code): 132
352 6577 Meeting password: 08102021 or by telephone by dialing 1-844-621-3956. Any oral comments made during this hearing
will be recorded and any electronic written comments can be submitted during
the hearing at policy.office@state.nm.us.
The
proposals were placed on file in the Office of the Secretary on July 2, 2021.
Pursuant to Regulation 3.1.2.9 NMAC under Section 9-11-6.2 NMSA 1978 of the
Taxation and Revenue Department Act, the final of the proposals, if filed, will
be filed as required by law on or about August 26, 2021.
Individuals
with disabilities who need any form of auxiliary aid to attend or participate
in the public hearing are asked to contact Alicia Romero at alicia.romero@state.nm.us. The Taxation and Revenue Department will make
every effort to accommodate all reasonable requests but cannot guarantee
accommodation of a request that is not received at least ten calendar days
prior to the scheduled hearing.
Copies of
the proposed rules may be found at https://www.tax.newmexico.gov/all-nm-taxes/proposed-regulations-hearing-notices/
or are available upon request by contacting the Tax Policy Office at policy.office@state.nm.us.
Notice
of Acceptance of Written Public Comment: Written
comments on the proposals can submitted by email to policy.office@state.nm.us or
by mail to the Taxation and Revenue Department, Tax Information and Policy
Office, Post Office Box 630, Santa Fe, New Mexico 87504-0630 on or before August
10, 2021 at 5:00 PM. All written
comments received by the agency will be posted on www.tax.newmexico.gov no more
than 3 business days following receipt to allow for public review.