TITLE 3: TAXATION

CHAPTER 2: GROSS RECEIPTS TAXES

PART 112: EXEMPTION - GROSS RECEIPTS TAX - INSURANCE COMPANIES

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

[11/15/96; 3.2.112.1 NMAC - Rn, 3 NMAC 2.24.1, 5/15/01]

3.2.112.2 SCOPE: This part applies to each insurance company, insurance agent or property bondsman engaging in business in New Mexico.

[11/15/96; 3.2.112.2 NMAC - Rn, 3 NMAC 2.24.2, 5/15/01]

3.2.112.3 STATUTORY AUTHORITY: Section 9-11-6.2 NMSA 1978.

[11/15/96; 3.2.112.3 NMAC - Rn, 3 NMAC 2.24.3, 5/15/01]

3.2.112.4 DURATION: Permanent.

[11/15/96; 3.2.112.4 NMAC - Rn, 3 NMAC 2.24.4, 5/15/01]

3.2.112.5 EFFECTIVE DATE: 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.

[11/15/96; 3.2.112.5 NMAC - Rn, 3 NMAC 2.24.5 & A, 5/15/01]

3.2.112.6 OBJECTIVE: The objective of this part is to interpret, exemplify, implement and enforce the provisions of the Gross Receipts and Compensating Tax Act.

[11/15/96; 3.2.112.6 NMAC - Rn, 3 NMAC 2.24.6, 5/15/01]

3.2.112.7 DEFINITIONS: [Reserved.]

[11/15/96; 3.2.112.7 NMAC - Rn, 3 NMAC 2.24.7, 5/15/01]

3.2.112.8 PREMIUMS FROM BONDS & POLICIES:

A. Receipts of insurance companies or any agent thereof from premiums for surety bonds or insurance policies are exempt under Section 7-9-24 NMSA 1978.

B. For purposes of Section 7-9-24 NMSA 1978, the term “insurance companies” includes:

(1) health maintenance organizations having a certificate of authority pursuant to the Health Maintenance Organization Law;

(2) nonprofit health care plans having a certificate of authority pursuant to the Nonprofit Health Care Plan Law;

(3) prepaid dental plans having a certificate of authority pursuant to the Prepaid Dental Plan Law; and

(4) prearranged funeral plans subject to the Prearranged Funeral Plan Regulatory Law.

C. For purposes of Section 7-9-24 NMSA 1978, the term “insurance companies” does not include motor clubs as defined in Section 59A-50-2 NMSA 1978.

D. For purposes of Section 7-9-24 NMSA 1978, receipts of insurance companies from premiums includes:

(1) health maintenance organization receipts which either are subject to the premium tax imposed by Section 59A-6-2 NMSA 1978 or are payments from the federal secretary of health and human services pursuant to a contract issued under the provisions of 42 U.S.C. Section 1395 mm(g);

(2) nonprofit health care plan receipts which are subject to the premium tax imposed by Section 59A-6-2 NMSA 1978;

(3) prepaid dental plan receipts which are subject to the premium tax imposed by Section 59A-6-2 NMSA 1978;

(4) prearranged funeral plan receipts which are subject to the premium tax imposed by Section 59A-6-2 NMSA 1978;

(5) premiums attributable to contracts purchased by the state or any of its political subdivisions whether or not the premiums are subject to premium tax; and

(6) such other receipts as are defined as premiums under the Insurance Code.

E. Section 3.2.112.8 NMAC applies to receipts from transactions occurring on or after January 1, 1992.

[12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 5/1/92, 11/15/96; 3.2.112.8 NMAC - Rn, 3 NMAC 2.24.8 & A, 5/15/01]

3.2.112.9 INSURANCE ADJUSTERS OR ADJUSTING FIRMS: Receipts of insurance adjusters or adjusting firms are not receipts from premiums and are not exempt under Section 7-9-24 NMSA 1978.

[12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.112.9 NMAC - Rn, 3 NMAC 2.24.9 & A, 5/15/01]

3.2.112.10 UNRELATED BUSINESSES:

A. The receipts of an insurance company or any agent thereof from the operation of a business or trade other than the insurance business in New Mexico are subject to the gross receipts tax.

B. Such receipts are not exempted from the gross receipts tax pursuant to Section 7-9-24 NMSA 1978 because they are not receipts derived from premiums.

[3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.112.10 NMAC - Rn, 3 NMAC 2.24.10 & A, 5/15/01]

HISTORY OF 3.2.112 NMAC:

Pre-NMAC History:

BOR 67-2, NM Gross Receipts and Compensating Tax Regulations, September 1967, filed 9/29/67.

BOR 69-4, Regulations in Effect and Pertaining to the New Mexico Gross Receipts and Compensating Tax Act, 12-5-69, filed 12/5/69.

BOR 72-4, Regulations in Effect and Pertaining to the New Mexico Gross Receipts and Compensating Tax Act, 3/9/72, filed 3/9/72.

BOR 74-2, Regulations in Effect and Pertaining to the New Mexico Gross Receipts and Compensating Tax Act, 12/15/73, filed 3/20/74.

BOR 76-1, Regulations in Effect and Pertaining to the New Mexico Gross Receipts and Compensating Tax Act, 7/26/76, filed 7/26/76.

R.D.79-1, Gross Receipts and Compensating Tax Act Regulations, filed 6/18/79.

R.D. Rule No. 82, Regulations Pertaining to the Gross Receipts and Compensating Tax Act, Sections 7-9-1 to 7-9-80.1 NMSA 1978, filed 4/7/82.

R.D. Rule No. 84, Regulations Pertaining to the Gross Receipts and Compensating Tax Act, Sections 7-9-1 to 7-9-80.1 NMSA 1978, filed 5/4/84.

TRD Rule No. 9-86, Regulations Pertaining to the Gross Receipts and Compensating Tax Act, Sections 7-9-1 to 7-9-80.1 NMSA 1978, filed 4/2/86.

TRD Rule GR-90, Regulations Pertaining to the Gross Receipts and Compensating Tax Act, Sections 7-9-1 to 7-9-80.1 NMSA 1978, filed 11/26/90.

History of Repealed Material: [RESERVED]

NMAC History:

3 NMAC 2.24, Exemption - Gross Receipts Tax - Insurance Companies, filed 11/4/96.

3.2.112 NMAC, Exemption - Gross Receipts Tax - Insurance Companies, filed 4/30/2001.