TITLE 3: TAXATION
CHAPTER 2: GROSS RECEIPTS TAXES
PART 220: DEDUCTION - GROSS RECEIPTS TAX -
AGRICULTURAL IMPLEMENTS -
AIRCRAFT - VEHICLES THAT ARE NOT
REQUIRED TO BE REGISTERED
3.2.220.1 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; 3.2.220.1 NMAC - Rn, 3 NMAC 2.62.1,
6/14/01]
3.2.220.2 SCOPE: This part applies to
each person engaging in business in New Mexico.
[11/15/96; 3.2.220.2 NMAC - Rn, 3 NMAC 2.62.2,
6/14/01]
3.2.220.3 STATUTORY AUTHORITY: Section 9-11-6.2 NMSA
1978.
[11/15/96; 3.2.220.3 NMAC - Rn, 3 NMAC 2.62.3,
6/14/01]
3.2.220.4 DURATION: Permanent.
[11/15/96; 3.2.220.4 NMAC - Rn, 3 NMAC 2.62.4,
6/14/01]
3.2.220.5 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; 3.2.220.5 NMAC - Rn, 3 NMAC 2.62.5
& A, 6/14/01]
3.2.220.6 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; 3.2.220.6 NMAC - Rn, 3 NMAC 2.62.6,
6/14/01]
3.2.220.7 DEFINITIONS: [Reserved.]
[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, 7/31/98; Rp, 1/29/99;
3.2.220.7 NMAC - Rn, 3 NMAC 2.62.7, 6/14/01]
3.2.220.8 TRADE-IN ALLOWANCES:
A. The deduction provided by Section 7-9-62
NMSA 1978 applies to the net receipts from the sale after any trade-in
allowance for the same type of equipment has been applied.
B. Example: A is engaged in the business of selling heavy
equipment. A sells B a D-11 tractor for $50,000. A allows B $5,000 on a used
tractor which B trades in. A must compute the tax liability as follows:
$50,000
5,000
(trade-in under Section 7-9-71 NMSA 1978)
$45,000
22,500
(50% deduction)
$22,500
x
.05
(rate of tax)
$ 1,125
tax due
Therefore
A owes a tax of $1,125.
[9/29/67, 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; 3.2.220.8 NMAC -
Rn, 3 NMAC 2.62.8 & A, 6/14/01]
3.2.220.9 PROPORTIONING PUMPS: Proportioning pumps
used to distribute metered amounts of fertilizer, herbicides, pesticides,
fumigants and the like to crop land by mixing those substances with irrigation
water are agricultural implements as that term is used in Section 7-9-62 NMSA
1978. Accordingly, fifty percent of the receipts from selling these pumps may be
deducted from gross receipts.
[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; 3.2.220.9 NMAC - Rn, 3
NMAC 2.62.9 & A, 6/14/01]
3.2.220.10 [Reserved.]
[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, 7/31/98; Rp 1/29/99; 3.2.220.10 NMAC
- Rn, 3 NMAC 2.62.10, 6/14/01]
3.2.220.11 FEED STORAGE:
Metal bins and similar devices designed to store feed on a farm or ranch,
which, in addition to storing, measure and control the flow of livestock, are
agricultural implements. Therefore, 50% of the receipts derived from selling
those articles may be deducted from gross receipts pursuant to Section 7-9-62
NMSA 1978.
[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; 3.2.220.11 NMAC - Rn, 3 NMAC 2.62.11 & A, 6/14/01; A, 10/31/05]
3.2.220.12 FUEL FOR IRRIGATION PUMPS: Receipts derived from
the sale of butane, propane, natural gas, electricity, or other fuel which is
used in the operation of irrigation pumps are not receipts from the sale of
agricultural implements and, therefore, are not subject to the 50% deduction
from gross receipts provided by Section 7-9-62 NMAC 1978.
[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; 3.2.220.12 NMAC - Rn, 3 NMAC
2.62.12 & A, 6/14/01]
3.2.220.13 [Reserved]
[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; 3.2.220.13 NMAC - Rn, 3 NMAC
2.62.13 & A, 6/14/01; Repealed, 10/31/07]
3.2.220.14 MOTORIZED GOLF CARTS: Fifty percent of the
receipts from selling motorized golf carts may be deducted from gross receipts
because motorized golf carts are vehicles that are not required to be
registered under the Motor Vehicle Code, Chapter 66.
[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; 3.2.220.14 NMAC - Rn, 3 NMAC
2.62.14 & A, 6/14/01]
3.2.220.15 BALING WIRE: Baling wire is not an
agricultural implement within the meaning of Section 7-9-62 NMSA 1978, and
therefore, the seller of baling wire to a farmer may not take the fifty percent
deduction allowed under Section 7-9-62 NMSA 1978.
[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; 3.2.220.15 NMAC - Rn, 3 NMAC
2.62.15 & A, 6/14/01]
3.2.220.16 MINING EQUIPMENT: Mining equipment must
be a “vehicle” as that term is defined in the Motor Vehicle Code in order to
qualify for the deduction provided in Section 7-9-62 NMSA 1978 and Section 7-9-77
NMSA 1978. A “motor vehicle” as defined in the Motor Vehicle Code is a vehicle
which is self-propelled. Mining equipment that receives its power from a
trailing cable which conveys electricity to it from an outside source is not
self-propelled.
[3/16/79, 6/18/79, 4/7/82, 5/4/84, 4/2/86,
11/26/90, 11/15/96; 3.2.220.16 NMAC - Rn, 3 NMAC 2.62.16 & A, 6/14/01]
3.2.220.17 WRITTEN STATEMENT
OF FARMING OR RANCHING:
A. The written statement required by
Section 7-9-62 NMSA 1978 for receipts from the sale of agricultural implements
on or after July 1, 1998 shall be in the form set out in Subsection B of Section
3.2.216.8 NMAC and must be signed personally by the purchaser or the
purchaser’s agent. The written statement must be accepted in good faith by the
seller in order for the seller to take the deduction authorized by Section 7-9-62
NMSA 1978 with respect to transactions occurring on or after July 1, 1998. The
good faith acceptance requirement applies to each transaction intended to be
covered by the written statement.
B. Receipts from the sale of agricultural implements on or
after July 1, 1998 may not be deducted under Section 7-9-62 NMSA 1978 unless
the sale is made to a person who makes a written statement in compliance with
Section 7-9-62 NMSA 1978.
C. For the purposes of Section 7-9-62
NMSA 1978, it is sufficient if the seller receives one written statement from
each purchaser, provided the seller maintains that statement on file.
D. When a seller accepts in good faith
a person’s written statement that the person is regularly engaged in the
business of farming or ranching, the written statement shall be conclusive
evidence that the receipts from the transaction with the person having made the
statement are deductible from the seller’s gross receipts under Section 7-9-62
NMSA 1978.
[7/31/98; 3.2.220.17 NMAC - Rn, 3 NMAC 2.62.17
& A, 6/14/01]
HISTORY
OF 3.2.220 NMAC:
Pre-NMAC
History: The material in this part was
derived from that previously filed with the State Records Center:
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 2.62, Deduction - Gross Receipts Tax - Agricultural Implements - Aircraft,
Vehicles That Are Not Required To Be Registered, filed 11/4/96.
3.2.220 NMAC, Deduction - Gross Receipts Tax - Agricultural
Implements - Aircraft, Vehicles That Are Not Required To Be Registered, filed
6/4/2001.