New Mexico – Resale and Exemption Certificate Deadline Reminder (NTTC)

SALT Report 3187 – 60 days means 60 days.  Nontaxable transaction certificate (NTTC) is required for services that are resold in normal course of business.  Under Section 7-9-48 “receipts from selling a service for resale may be deducted from gross receipts…if the sale is made to a person who delivers a nontaxable transaction certificate to the seller.  The buyer delivering the nontaxable transaction must resell the service in the ordinary course of business and the resale must be subject to the gross receipts tax.”

New Mexico audited the taxpayer and requested a copy of the NTTC which the taxpayer provided but not within the 60 day time period.

“Therefore, the only issue is whether Taxpayer may deduct his receipts if the NTTC was provided to the Department after the 60 day period expired.   Section 7-9-43(A) provides that:  (a)ll nontaxable transaction certificates of the appropriate series executed by buyers or lessees should be in the possession of the seller or lessor for nontaxable transactions at the time the return is due for receipts from the transactions. If the seller or lessor is not in possession of the required nontaxable transaction certificates within sixty days from the date that the notice requiring possession … deductions shall be disallowed.  (Emphasis added.) NMSA 1978, Section 7-9-43(A) (2011)”

Denied.

“Unfortunately because the Type 5 NTTC from Madron was executed after the extended deadline, Taxpayer is not entitled to deduct his receipts from Madron.”

For Further Information:              

NM No. 13-33