New Mexico – General Gross Receipts Tax Regulation Amended

SALT Report 1977 – The New Mexico Taxation and Revenue Department has amended its regulation regarding the gross receipts and compensating use taxes as they apply to construction services. The amendments are as follows:

  • The term “a person engaged in the construction business” is defined as a person who performs construction services as stated in §7-9-3.4 NMSA.  This section details what activities are not considered construction services but notes that some of the activities may qualify as construction-related services.
  • The term “construction” does not include leasing or renting tangible personal property, such as construction equipment, with or without an operator, except for transactions that occur on or after January 1, 2013.
  • The provision regarding speculative builders has been removed.
  • The provisions regarding Type 6 nontaxable transaction certificates (NTTC) and Type 7 NTTC’s for purchases of certain carpets and draperies by a person engaged in the construction business has been removed.
  • NTTC’s will be provided to persons in the construction business who perform activities set forth in §§7-9-3.4, 7-9-52 and 7-9-52.1 NMSA “and execute to providers of construction materials, construction services, and lessors of construction equipment.”
  • The provision on speculative housing sales was removed from the real estate and intangible property section for gross receipts tax purposes.
  • The provision regarding gross receipts acquired from the performance of a service in New Mexico has been amended to reflect that these receipts are taxable unless a specific exemption or deduction in the Gross Receipts and Compensating Tax Act applies.

For Further Information:

New Mexico Taxation and Revenue Department – 3.2.1 NMAC