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NEW MEXICO
Taxation and Revenue Department
P.O. Box 25128        l            Santa Fe, New Mexico  87504-5128        l        505-827-0700

TRD web site    http://www.tax.state.nm.us/

                                            CRS-1 FILER'S KIT 
                        For Reporting Gross Receipts, Withholding and Compensating Taxes

                                            July through December 2010
Mail T : o

                                             GROSS RECEIPTS TAX INCREASE BEGINNING JULY 1, 2010
                                            The state portion of the gross receipts tax, as well as the compensating tax rate, will 
      Contents                              increase by one-eighth percent for all loctions as of July 1, 2010. This change comes 
                                            from Senate Bill 10, which was passed by the New Mexico Legislature in the Special 
In This Kit:                                Session and signed into law by Governor Richardson. Please see the rate schedule for 
in order of appearance                      the current updated rates.

     Announcements                         A new location code is added in Dona Ana County for the newly incorporated munici-
     Due Date Calendar*                    pality of Anthony. A new location code was also added for the Village at Rio Rancho 
     Department Ofice Locations            TIDD. Two location codes were added for Picuris Pueblo in Taos County because the 
     Taxpayer Bill of Rights*              Picuris Pueblo entered into a cooperative agreement with the state for collection of 
     Gross Receipts Tax Rate Schedule*     gross receipts tax.
     CRS-1 Form Instructions*              Separate locations codes for the Moriarty Airport (Torrance County) and the Alexander 
     CRS-1 Report Forms*                   Airport (Valencia County) have been removed from the rate schedule because these 
     CRS-1 Long Form*                      areas have been annexed into existing municipalities.
     2010  Legislative Summary*
     Overview of Gross Receipts 
        and Compensating Taxes*                   Coming Soon......Tax Amnesty
     
      Withholding Tax*                      Take advantage of this limited window of opportunity to pay your unreported or 
     General Information*
                                             underreported taxes without having to pay penalties or interest due.
     Percentage Method Tables*
    Other Forms                             The Amnesty Program applies to taxes due prior to January 1, 2010.
    Publications Request
    Business Tax Registration Update*      This Amnesty Program DOES NOT apply to taxes due which have already 
    Application for Tax Refund*                                      been assessed.
    Application for Nontaxable
                                            The Department will accept Tax Amnesty applications from June 28, 2010 through 
      Transaction Certiicates*
                                                                     September 30, 2010.
        Nontaxable Transaction Certiicate
                Report* 
                                            For more information on the Tax Amnesty Program, contact any local District 
                                                               Ofice or please visit our Amnesty website at
*      Also available on TRD web site       
        http://www.tax.state.nm.us/              www.taxamnesty.newmexico.gov

                        TO OPEN:  FOLD AND TEAR ALONG THE PERFORATION

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                                                                                                                                          (Calls transfer to Roswell Office)
                                                                                                                                                             Telephone: (575) 763-5515
                                                                                                                                 Taxation & Revenue Department
                                                                                                                                                                          CLOVIS:
    (Calls transfer to Las Cruces Office)                   Telephone: (575) 524-6225
   Telephone: (575) 388-4403                              Las Cruces, NM  88004-0607                                                      (Calls transfer to Roswell Office)
   Taxation & Revenue Department                              P.O. Box 607                                                                                   Telephone: (575) 885-5616
                 SILVER CITY:                               2540 S. El Paseo, Bldg. #2                                           Taxation & Revenue Department
                                                          Taxation & Revenue Department                                                                      CARLSBAD:
   Telephone: (505) 827-0951                                                                  LAS CRUCES:
   Santa Fe, NM  87502-5374                                                                                                   (Calls transfer to Las Cruces Office)                                   
        P.O. Box 5374                                     (Calls transfer to Roswell Office)                                                                 Telephone: (575) 437-2322                
   1200 South St. Francis Drive                             Telephone: (575) 393-0163                                                               Taxation & Revenue Department                     
   Taxation & Revenue Department                          Taxation & Revenue Department                                                                      ALAMOGORDO:
                          SANTA FE:                                                              HOBBS:
                                                                                                                                                             Telephone: (505) 841-6200
   Telephone: (575) 624-6065                                Telephone: (505) 325-5049                                                               Albuquerque, NM  87198-8485
   Roswell, NM  88202-1557                                Farmington, NM  87499-0479                                                                         P.O. Box 8485
        P.O. Box 1557                                         P.O. Box 479                                                                                   5301 Central Ave., NE
   400 Pennsylvania Ave., Suite 200                       3501 E. Main Street, Suite N                                                                       Bank of the West Building
   Taxation & Revenue Department                          Taxation & Revenue Department                                          Taxation & Revenue Department
                          ROSWELL:                                                            FARMINGTON:                                                    ALBUQUERQUE:

                                                          you may contact your local Taxation and Revenue Department Ofice.
If you have questions or require additional information, Local Taxation and Revenue Department Ofices:  

                                                                                                                                                             and semi-annual filers.
                                                                                                                                                             Due date for monthly, quarterly 
                                                                                                                              31                                                      filers.
   26  27  28    29   30   31                             28  29  30                          30 24  25  26  27  28  29                                      Due date for monthly and quarterly 
25 19  20  21  22  23  24             27  21  22  23  24  25  26                              23 17  18  19  20  21  22 
                                                                                                                                                             monthly filers.
18 12  13  14  15  16  17             20  14  15  16  17  18  19                              16 10  11  12  13  14  15                                      Due date (postmark date) for 
11 10 9 8      7 6         5          13  9  10  11  12     8  7                              9    8   3       4     5    6    7 
                                                                                                                                                                                      Legend:
4  3                 1  2             6   5  4          3 2            1                      2                  1               
S  F  T W      T M        S           S   F  T          W T M S                               S  F   T        W    T        M S  
   DECEMBER                               NOVEMBER                                               OCTOBER                                                     it online: www.tax.state.nm.us/
                                                                                                                                                             district tax ofice (see below) or view 
                                                                                                                                                             Methods, order FYI-401 from your local 
                                                                                                                                                             For details on Special Payment     dar. 
                                                                                                                                                             than those indicated on this calen-
      26     27  28   29   30                              29   30  31                        25  26  27  28     29   30   31                                their payment dates will be earlier 
25 19  20  21  22  23  24              22     23  24   25  26    27    28                     18  19  20  21  22     23    24                                by Special Payment Method and 
18 12  13  14  15  16  17              15   16 17  18  19      20    21                       11  12  13  14  15     16    17                                year is $25,000 or more must pay 
11 10  8   9    5        6    7         8     9  10  11  12      13    14                      4     5     6       7   8       9    10                       monthly tax liability for a calendar 
4                         1    2    3 5        6      7 4 3     1     2                                                                                      Taxpayers whose average endar.  
                                                                                                             1     2    3                             
S  W    T    F T M        S           W    T       F     ST M  S                                                                                             the due dates indicated on the cal-
                                                                                              T        F     SW    T        M S                      
   SEPTEMBER                                AUGUST                                                   JULY                                                    CRS taxes must be paid on or before 

                                             July through December 2010
               DUE DATES FOR REPORTING AND PAYING CRS TAXES

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E is for EASY
E-�ling takes the worry out of �ling 

your CRS return

uE-�ling changes take e�ect this year

 E-�ling your monthly CRS (Combined Reporting System) returns will soon be 
 mandatory*, and the Taxation and Revenue Department is here to help you, if 
 you are not e-�ling already. Beginning in August, all �lers with tax payments due 
 over $20,000 will be required to �le their monthly returns online. In January 2011, 
 all �lers with monthly tax payments due over $10,000 will have to �le online. And 
 in July, 2011, all monthly �lers will be required to �le online. Many of you already 
 �le online, but if you don’t and need some help, go to www.tax.state.nm.us or 
 call our Help Hotline at 505-827-0832 and let us walk you through it. Filing online 
 is fast, e�cient, easy and user friendly. Give it a try.
  
uE-pay is the quick and GREEN way to make your payment

 Once you’re online �ling your return, you can also pay using e-check or credit 
 card with a few easy steps. After you submit your payment information, you will 
 receive an online con�rmation. Now you can be sure your payment is there on 
  time, while saving you time, money and even a stamp. So e-�le and pay, 
  and take the worry out by “GOING GREEN.”

               *The new e-�ling requirements have been proposed as a   
  regulation per statutory authority granted to the Secretary.

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                                   New Mexico Taxpayer Bill of Rights

Most tax transactions happen without incident. In an imperfect world,      Audit Provisions:
however, occasional disagreements occur due to misunderstanding,                   We must provide you with written, dated notice that an audit 
mathematical error, missed deadlines, misplaced papers, high volume        is about to begin on a speciic date, and the notice must tell you which 
of transactions and many other situations. Over the years the Legisla-     tax programs and reporting periods will be covered. We must issue a 
ture and the department have established ways to handle dificulties        second notice, which states any outstanding records or books of account 
according to the provisions of the state tax code. Following are some      requested and not yet received, between 60 and 180 days after the audit 
of your rights. Should you wish to consult the law itself, you will ind    begins. If you do not produce the records within 90 days, the Depart-
it in Sections 7-1-4.1 through 7-1-4.3 NMSA 1978:                          ment can issue an assessment of tax on the basis of the information as it 
Ø  The right to available public information and prompt and courteous      stands. If you need additional time, you must submit a speciic request 
 tax assistance;                                                           in writing. Interest on outstanding liabilities accrues if the Department 
Ø  The right to representation and advice by counsel or other quali-       does not issue an assessment within 180 days of the notice of outstanding 
 ied representatives at any time during your interactions with us          records or books, or within 90 days after time has expired under your 
 according to provisions of Section 7-1-24 NMSA 1978;                      request for additional time; however, you are entitled to an abatement of 
Ø  The right to have audits, inspections of records and meetings con-      interest for the period of time after you have complied with Department 
 ducted at a reasonable time and place according to Section 7-1-11         requests and the Department has not acted on the audit.
 NMSA 1978;
Ø  The right to simple, non-technical information explaining procedures,   New Administrative Hearing Procedures:
 remedies and rights during audit, protest and collection proceedings               A Department hearing oficer may not engage as an employee 
 under the Tax Administration Act;                                         in enforcing or formulating general tax policy other than to conduct 
Ø  The right to receive an explanation of audit results and the basis for  hearings. You may request the Secretary to determine if a hearing of-
 audits, assessments or denials of refunds that identify tax, interest     icer’s activities have affected his or her impartiality, and the Secretary 
 or penalty due;                                                           may assign the case to another hearing oficer. Hearing oficers may 
Ø  The right to seek review through formal or informal proceedings         not communicate unilaterally about a matter you have protested while 
 of indings or unfavorable decisions arising from determinations           that matter is still pending. The Secretary may appoint another hearing 
 during audit or protest procedures according to Section 7-1-24            oficer if that occurs. You may request a written ruling on any contested 
 NMSA 1978;                                                                question of evidence in matters in which you have iled a pending written 
Ø  The right to have your tax information kept conidential unless          protest. You also may request that two or more protests on related issues 
 otherwise speciied by law in Sections 7-1-8.1 through 7-1-8.10            be combined and heard jointly, and the hearing oficer shall grant the 
 NMSA 1978;                                                                request unless it creates an unreasonable burden on the Department.  
Ø  The right to an abatement of an assessment of taxes incorrectly, 
 erroneously or illegally made (Section 7-1-28 NMSA 1978) and a            Credit Claims:
 right to seek a compromise of an asserted tax liability. When the                 The Department has 180 days from the iling date to approve 
 Secretary of Taxation and Revenue in good faith doubts that you           or deny a statutory tax credit. If it does not act, the credit is approved. 
 owe us what we claim you owe, you also have the right to seek a           The Secretary decides whether a refund of tax due you may be offset 
 compromise if one exists in your particular case (Section 7-1-20          against your other tax liabilities, and you will receive notice that the 
 NMSA 1978);                                                               refund will be made accordingly. You are entitled to interest until the 
Ø  The right to clear information of the consequences if a tax assessment  tax liability is credited with the refund amount. Please see the paragraph 
 is not paid, secured, protested or otherwise provided for accord-         above on “Audit Provisions” for interest due you if the Department does 
 ing to Section 7-1-16 NMSA 1978. If you become a delinquent               not offset a refund or credit against your other tax liabilities within the 
 taxpayer, upon notice of delinquency you have the right to timely         prescribed time. The Department may make a direct refund of overpaid 
 notice of collection actions that require sale or seizure of your         taxes to the taxpayer without requiring the taxpayer to ile a refund claim. 
 property under the Tax Administration Act, and                            The Department does not have to pay interest on credits or refunds if it 
Ø  The right to apply to pay your tax obligations by installment pay-      applies the amount to a tax interception program, to an estimated pay-
 ment agreements according to the provisions of Section 7-1-21             ment, or to offset prior liabilities of the taxpayer.
 NMSA 1978).
                                                                           Awarding of Costs and Fees:
Conidentiality Provisions:                                                         If you prevail in an administrative or court proceeding brought 
          Statutes regulating the conidentiality of your taxes continue to by you or against you after July 1, 2003, under the Tax Administration 
be strict. The Legislature included language in Section 7-1-8.2 NMSA       Act, you will receive a judgment or a settlement for reasonable admin-
1978 requiring the Department to answer questions about whether a          istrative costs connected to the action.
taxpayer is registered to do business in this state or is registered for 
other tax programs, but it does not allow employees to reveal whether      Penalty:
you have iled a return. A hearing oficer’s written ruling on questions of          The Department may not assess penalty against you if you 
evidence or procedure according to Section 7-1-24 NMSA 1978 may be         fail to pay tax when due because of a mistake of law made in good faith 
made public, but not the name and identiication number of the taxpayer     and on reasonable grounds. If the Secretary determines that it is unfair 
requesting the ruling. Now included in public record are the monthly       to hold a spouse or former spouse liable for payment of unpaid taxes, 
gasoline tax reports of numbers of gallons of gasoline and ethanol-blended the Secretary may decline to take action against the spouse or former 
fuels received and deducted, and the tax paid by each iler or payer of     spouse of the person who actually owes the tax. In extreme cases of 
the tax. Identities of rack operators, importers, blenders, suppliers or   delinquency under Section 7-1-53 NMSA 1978 the Department may 
distributors and the number of gallons of gasoline and other fuels are     enjoin a taxpayer from continuing in business after a hearing and until 
public record. The Department may make known to the Gaming Control         the delinquency is cleared. 
Board the tax returns of license applicants and their afiliates.

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                                                      REVISED
GROSS RECEIPTS TAX RATE SCHEDULE                                             Effective July 1, 2010 through December 31, 2010
                                         Location                                                                         Location 
               Municipality or County    Code     Rate                 Municipality or County                               Code               Rate
                            BERNALILLO*                                                     GRANT*
Albuquerque*                             02-100   7.0000%Bayard*                                                            08-206            7.2500%
AIS Property/Nineteen Pueblos of NM (1)c*02-905   7.0000%Hurley*                                                            08-404            7.2500%
AIS Property/Nineteen Pueblos of NM (2)c*02-906   7.0000%Santa Clara*                                                       08-305            7.2500%
Laguna Pueblo (1)*                       02-951   6.0625%Silver City*                                                       08-107            7.3750%
Laguna Pueblo (2)*                       02-952   6.0625%Remainder of County*                                               08-008            6.1875%
Los Ranchos de Albuquerque*              02-200   7.0625%                             GUADALUPE*
Mesa Del Sol TID District 1*             02-606   7.0000%Santa Rosa*                                                        24-108            8.0000%
Quorum at ABQ Uptown TIDD*               02-034   7.0000%Vaughn*                                                            24-207            7.5000%
Rio Rancho (Bernalillo)*                 02-647   7.3750%Remainder of County*                                               24-024            6.4375%
Sandia Pueblo (1)*                       02-901   6.0625%                               HARDING*
Sandia Pueblo (2)*                       02-902   6.0625%Mosquero (Harding)*                                                31-208            6.5625%
State Fairgrounds*                       02-555   6.0625%Roy*                                                               31-109            6.9375%
Tijeras*                                 02-318   6.9375%Remainder of County*                                               31-031            5.7500%
Upper Petroglyphs TID District 1*        02-607   6.0625%                               HIDALGO*
Upper Petroglyphs TID District 2*        02-608   6.0625%Lordsburg*                                                         23-110            7.5000%
Upper Petroglyphs TID District 3*        02-609   6.0625%Virden*                                                            23-209            6.6875%
Upper Petroglyphs TID District 4*        02-610   6.0625%Remainder of County*                                               23-023            6.0625%
Upper Petroglyphs TID District 5*        02-611   6.0625%                                     LEA*
Upper Petroglyphs TID District 6*        02-612   6.0625%Eunice*                                                            06-210            6.8125%
Upper Petroglyphs TID District 7*        02-613   6.0625%Hobbs*                                                             06-111            6.8125%
Upper Petroglyphs TID District 8*        02-614   6.0625%Jal*                                                               06-306            6.8125%
Upper Petroglyphs TID District 9*        02-615   6.0625%Lovington*                                                         06-405            6.8750%
Winrock Town Center TID District 1*      02-035   7.0000%Lovington Industrial Park*                                         06-158            5.5000%
Winrock Town Center TID District 2*      02-036   7.0000%Tatum*                                                             06-500            6.8125%
Remainder of County*                     02-002   6.0625%Remainder of County*                                               06-006            5.5000%
                                 CATRON*                                                    LINCOLN*
Reserve*                                 28-130   6.9375%Capitan*                                                           26-211            6.8125%
Remainder of County*                     28-028   5.6250%Carrizozo*                                                         26-307            7.0000%
                                 CHAVES*                 Corona*                                                            26-406            6.9375%
Dexter*                                  04-201   6.9375%Ruidoso*                                                           26-112            8.4375%
Hagerman*                                04-300   7.1250%Ruidoso Downs*                                                     26-501            6.9375%
Lake Arthur*                             04-400   6.4375%Remainder of County*                                               26-026            5.5000%
Roswell*                                 04-101   7.1250%                             LOS ALAMOS*
Remainder of County*                     04-004   6.0625%City and County*                                                   32-032            7.3125%
                                 CIBOLA*                                                      LUNA*
Grants*                                  33-227   8.0000%Columbus*                                                          19-212            7.5625%
Milan*                                   33-131   7.6250%Deming*                                                            19-113            7.5000%
Laguna Pueblo (1)*                       33-901   6.6875%Deming Industrial Park*                                            19-155            6.5000%
Laguna Pueblo (2)*                       33-902   6.6875%Remainder of County*                                               19-019            6.5000%
Remainder of County*                     33-033   6.6875%                               McKINLEY*
                                 COLFAX*                 Gallup*                                                            13-114            8.0625%
Angel Fire*                              09-600   7.4375%Remainder of County*                                               13-013            6.7500%
Cimarron*                                09-401   6.8125%                                     MORA*
Eagle Nest*                              09-509   7.1875%Wagon Mound*                                                       30-115            6.9375%
Maxwell*                                 09-202   5.8750%Remainder of County*                                               30-030            5.9375%
Raton*                                   09-102   7.9375%                                   OTERO*
Springer*                                09-301   6.8125%Alamogordo*                                                        15-116            7.6250%
Remainder of County*                     09-009   5.7500%Cloudcroft*                                                        15-213            7.3750%
                                 CURRY*                  Tularosa*                                                          15-308            7.3750%
Clovis*                                  05-103   7.5625%Remainder of County*                                               15-015            5.9375%
Clovis Airport*                          05-154   5.8750%                                     QUAY*
Grady*                                   05-203   6.6875%House*                                                             10-407            7.7500%
Melrose*                                 05-402   7.5000%Logan*                                                             10-309            8.1250%
Texico*                                  05-302   7.3125%San Jon*                                                           10-214            8.1250%
Remainder of County*                     05-005   5.8750%Tucumcari*                                                         10-117            8.1250%
                                 DEBACA*                 Remainder of County*                                               10-010            6.4375%
Fort Sumner*                             27-104   7.3750%
Remainder of County*                     27-027   6.3125%
                                DONA ANA*                    OTHER TAXES AND REPORTING LOCATIONS                                            Location
Anthony*                                 07-507   6.0000%                                                                                      Code
City of Las Cruces TID District*         07-132   7.5625% Leased Vehicle Gross Receipts Tax - 5.00% . . . . . . . . . . . . . . . . . . . .  44-444. . . . . . . . . . . . . . . . . . 
Hatch*                                   07-204   7.4375% Leased Vehicle Surcharge - $2.00/day/vehicle . . . . . . . . . . . . . . . . . .  44-455. . . . . . . . . . . . . . . . . . . . 
Las Cruces*                              07-105   7.5625% Governmental Gross Receipts Tax - 5.00%. . . . . . . . . . . . . . . . . . . . .  55-055. . . . . . . . . . . . . . . . . . . .
Mesilla*                                 07-303   7.8125% Out-of-State Business (R&D Services) - 5.125%  . . . . . . . . . . . . . . . .  77-777. . . . . . . . . . . . . . . . . . . . .
Sunland Park*                            07-416   7.6875% Out-of-State Business (All Other) - 5.125%  . . . . . . . . . . . . . . . . . . . . .  88-888. . . . . . . . . . . . . . . . . . . .
Remainder of County*                     07-007   6.3750%
                                 EDDY*                                       NOTE KEY
Artesia*                                 03-205   7.1875% (1) Sales to tribal entities or members
Carlsbad*                                03-106   7.4375% (2) Sales to tribal non-members by tribal non-members
Hope*                                    03-304   6.6250%  a Businesses located on Pueblo land within the city limits.
Loving*                                  03-403   6.8125%  b Businesses located within the water district and the city limits.
Remainder of County*                     03-003   5.7500%  c Albuquerque Indian School Property owned by the 19 Pueblos of NM.
  STATE GROSS RECEIPTS TAX RATE = 5.125%                  * Indicates rate change due to enactment/expiration of local option taxes
  COMPENSATING TAX RATE ON PROPERTY = 5.125%                and/or increase of state gross receipts tax rate.
  COMPENSATING TAX RATE ON SERVICES = 5%

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                                                             REVISED
GROSS RECEIPTS TAX RATE SCHEDULE                                                    Effective July 1, 2010 through December 31, 2010
                                                Location                                                                         Location 
           Municipality or County               Code     Rate                  Municipality or County                              Code               Rate
                            RIO ARRIBA*                                                            SIERRA*
Chama*                                          17-118   8.0000%Elephant Butte*                                                    21-319            7.5000%
Espanola (Rio Arriba)*                          17-215   8.0000%Truth or Consequences*                                             21-124            7.6250%
Espanola/Ohkay Owingeh Pueblo (1)a*             17-943   8.0000%Truth or Consequences Airport*                                     21-164            6.3125%
Espanola/Ohkay Owingeh Pueblo (2)a*             17-944   8.0000%Williamsburg*                                                      21-220            7.5625%
Espanola/Santa Clara Grant (1)a*                17-903   8.0000%Remainder of County*                                               21-021            6.3125%
Espanola/Santa Clara Grant (2)a*                17-904   8.0000%                               SOCORRO*
Jicarilla Apache Nation (1)*                    17-931   6.3125%Magdalena*                                                         25-221            6.8750%
Jicarilla Apache Nation (2)*                    17-932   6.3125%Socorro (city)*                                                    25-125            7.0000%
Ohkay Owingeh Pueblo (1)*                       17-941   6.3125%Socorro Industrial Park*                                           25-162            5.9375%
Ohkay Owingeh Pueblo (2)*                       17-942   6.3125%Remainder of County*                                               25-025            5.9375%
Santa Clara Pueblo (1)*                         17-901   6.3125%                                     TAOS*
Santa Clara Pueblo (2)*                         17-902   6.3125%El Prado Water and Sanitation District*                            20-415            7.3750%
Remainder of County*                            17-017   6.3125%El Prado Water and Sanitation Districtb*                           20-425            8.4375%
                            ROOSEVELT*                          El Valle de Los Ranchos Water & Sanitation District*               20-419            7.3750%
Causey*                                         11-408   6.6875%El Valle de Los Ranchos Water & Sanitation Districtb*              20-429            8.4375%
Dora*                                           11-310   6.9375%Picuris Pueblo (1)*                                                20-917            7.1250%
Elida*                                          11-216   7.5625%Picuris Pueblo (2)*                                                20-918            7.1250%
Floyd*                                          11-502   6.6875%Questa*                                                            20-222            8.1875%
Portales*                                       11-119   7.7500%Questa Airport*                                                    20-160            7.1250%
Remainder of County*                            11-011   6.1875%Red River*                                                         20-317            8.4375%
                              SANDOVAL*                         Taos (city)*                                                       20-126            8.1875%
Bernalillo (City)*                              29-120   7.0625%Taos Airport*                                                      20-163            7.1250%
Corrales*                                       29-504   7.1875%Taos Pueblo (1)*                                                   20-913            7.1250%
Cuba*                                           29-311   7.8125%Taos Pueblo (2)*                                                   20-914            7.1250%
Jemez Springs*                                  29-217   6.9375%Taos/Taos Pueblo (1)a*                                             20-915            8.1875%
Jicarilla Apache Nation (1)*                    29-931   6.2500%Taos/Taos Pueblo (2)a*                                             20-916            8.1875%
Jicarilla Apache Nation (2)*                    29-932   6.2500%Taos Ski Valley*                                                   20-414            8.6875%
Laguna Pueblo (1)*                              29-921   6.2500%Remainder of County*                                               20-020            7.1250%
Laguna Pueblo (2)*                              29-922   6.2500%                               TORRANCE*
Pueblo de Cochiti (1)*                          29-971   6.2500%Encino*                                                            22-410            7.0625%
Pueblo de Cochiti (2)*                          29-972   6.2500%Estancia*                                                          22-503            7.5625%
Rio Rancho (Sandoval)*                          29-524   7.1875%Moriarty*                                                          22-223            7.4375%
San Ysidro*                                     29-409   6.7500%Mountainair*                                                       22-127            7.6875%
Sandia Pueblo (1)*                              29-911   6.2500%Willard*                                                           22-314            7.3125%
Sandia Pueblo (2)*                              29-912   6.2500%Remainder of County*                                               22-022            6.5000%
Santa Ana Pueblo (1)*                           29-951   6.2500%                                     UNION*
Santa Ana Pueblo (2)                            29-952   6.2500%Clayton*                                                           18-128            7.8750%
Kewa Pueblo (1) - formerly Santo Domingo Pueblo 29-973   6.2500%Des Moines*                                                        18-224            7.5000%
Kewa Pueblo (2) - formerly Santo Domingo Pueblo 29-974   6.2500%Folsom*                                                            18-411            7.5000%
Village at Rio Rancho TIDD*                     29-525   7.1875%Grenville*                                                         18-315            7.5000%
Remainder of County*                            29-029   6.2500%Remainder of County*                                               18-018            6.0625%
                              SAN JUAN*                                                        VALENCIA*
Aztec*                                          16-218   7.7500%Belen*                                                             14-129            7.8125%
Bloomfield*                                     16-312   7.6875%Bosque Farms*                                                      14-505            7.6875%
Farmington*                                     16-121   7.1250%Laguna Pueblo (1)*                                                 14-901            6.3750%
Valley Water and Sanitation District*           16-321   6.5625%Laguna Pueblo (2)*                                                 14-902            6.3750%
Remainder of County*                            16-016   6.3125%Los Lunas*                                                         14-316            7.5625%
                            SAN MIGUEL*                         Peralta*                                                           14-412            7.4375%
Las Vegas*                                      12-122   7.8125%Remainder of County*                                               14-014            6.3750%
Mosquero (San Miguel)*                          12-418   7.0625%
Pecos*                                          12-313   7.4375%
Remainder of County*                            12-012   6.5000%
                              SANTA FE*
Edgewood*                                       01-320   7.8750%    OTHER TAXES AND REPORTING LOCATIONS                                            Location
Espanola (Santa Fe)*                            01-226   8.4375%                                                                                      Code
Espanola/Santa Clara Grant (1)a*                01-903   8.4375% Leased Vehicle Gross Receipts Tax - 5.00% . . . . . . . . . . . . . . . . . . . .  44-444. . . . . . . . . . . . . . . . . . 
Espanola/Santa Clara Grant (2)a*                01-904   8.4375% Leased Vehicle Surcharge - $2.00/day/vehicle . . . . . . . . . . . . . . . . . .  44-455. . . . . . . . . . . . . . . . . . . . 
Nambe Pueblo (1)*                               01-951   6.6250% Governmental Gross Receipts Tax - 5.00%. . . . . . . . . . . . . . . . . . . . .  55-055. . . . . . . . . . . . . . . . . . . .
Nambe Pueblo (2)*                               01-952   6.6250% Out-of-State Business (R&D Services) - 5.125%  . . . . . . . . . . . . . . . .  77-777. . . . . . . . . . . . . . . . . . . . .
Pojoaque Pueblo (1)*                            01-961   6.6250% Out-of-State Business (All Other) - 5.125%  . . . . . . . . . . . . . . . . . . . . .  88-888. . . . . . . . . . . . . . . . . . . .
Pojoaque Pueblo (2)*                            01-962   6.6250%
Pueblo de Cochiti (1)*                          01-971   6.6250%
Pueblo de Cochiti (2)*                          01-972   6.6250%                    NOTE KEY
Santa Clara Pueblo (1)*                         01-901   6.6250% (1) Sales to tribal entities or members
Santa Clara Pueblo (2)*                         01-902   6.6250% (2) Sales to tribal non-members by tribal non-members
Kewa Pueblo (1) - formerly Santo Domingo Pueblo*01-973   6.6250%  a Businesses located on Pueblo land within the city limits.
Kewa Pueblo (2) - formerly Santo Domingo Pueblo*01-974   6.6250%  b Businesses located within the water district and the city limits.
Santa Fe (city)*                                01-123   8.1875%  c Albuquerque Indian School Property owned by the 19 Pueblos of NM.
Remainder of County*                            01-001   6.6250%
                                                                 * Indicates rate change due to enactment/expiration of local option taxes
  STATE GROSS RECEIPTS TAX RATE = 5.125%                           and/or increase of state gross receipts tax rate.
  COMPENSATING TAX RATE ON PROPERTY = 5.125%
  COMPENSATING TAX RATE ON SERVICES = 5%

- 7 -

CRS-1 INST.
REV. 04/10 CRS-1 INSTRUCTIONS FOR PAPER FILING
Each report is due on or before the 25th of the month following the end of the tax period covered by the report.
NOTE: For CRS-1 Forms due after August 1, 2010, you may be required NOTE: Each line of the CRS-1 or the CRS-1 Long Form must have an entry for
to ile electronically. For more information on this e-iling requirement, Columns A and C. The exception is Column B. Place an entry in Column B
please visit our website at www.tax.state.nm.us only if a special code applies to your receipts. Leave no blanks in Columns
A or C even if the information in them is identical to the line above.
Businesses with more than three business locations, codes or lines of
detail to report or those who wish to claim the Services for Resale Tax COLUMN D: there are seven kinds of receipts reported on the CRS-1 Form or
Credit should complete the CRS-1 Long Form instead of the regular CRS-1 Long Form:
CRS-1 Form. The CRS-1 Long Form is available in this kit. • “Regular” Gross Receipts is the total amount of money plus the monetary value
of other consideration received from four kinds of transactions: selling property
COLUMN A: On separate lines enter the name of each municipality or county
in New Mexico (including intangible personal property); leasing property used
where you have a business location. The Gross Receipts Tax Rate Schedule has
in New Mexico; performing services in New Mexico, or performing research
the listing of counties, municipalities and location codes for each. For more detail
and development services out of state when initial use of the product of the
see FYI-200, “Your Business Location.” Report receipts for your business location(s)
research and development service occurs in New Mexico;
even when goods or services are delivered elsewhere. The only exceptions are: • Governmental Gross Receipts are receipts of governments from selling
• Construction. The location is the construction site;
tangible personal property and performing speciied services;
• Real estate sales. The location is the site of each property sold; • Interstate Telecommunications Gross Receipts are receipts of interstate
• Telecommunications. The location is the customer’s receiver. For cellular
telecommunications companies from providing interstate telecommunications
telephone service the business location is the customer’s place of primary services that originate or terminate in New Mexico or that are charged to a
use.
telephone or account in New Mexico;
• Utilities. The location is the meter recording the amount of service the • Tribal/Pueblo Gross Receipts are receipts of tribal entities that are collected by
customer consumes. the department when the entity has entered into a cooperative agreement with
• Transactions on the territory of an Indian tribe, pueblo or nation that has the tribe or pueblo;
entered into a cooperative agreement with the Taxation and Revenue • Leased Vehicle Gross Receipts are receipts from the short-term rental of
Department. The location is where services are performed and property is passenger automobiles that are part of a leet of ive or more vehicles;
delivered. • Leased Vehicle Surcharge is the total due at $2 per day that each vehicle
subject to the leased vehicle gross receipts tax is rented. Carry the leased
Businesses without locations or resident sales personnel in New Mexico enter “out vehicle surcharge directly to Column H. Columns E, F & G should be left blank,
of state.” and
• Gross receipts that require a special code (other than Interstate
Governments reporting governmental gross receipts enter “GGRT.” Telecommunications Gross Receipts). Such receipts are for transportation (see
FYI-290), qualifying receipts for food (see FYI-201) and medical (see FYI-202)
Businesses reporting leased vehicle gross receipts tax use “LVGRT.” Enter “LVSur” transactions.
for the leased vehicle surcharge.
For Column D there are two types of entry:
COLUMN B: Enter the Special Code from the table below. Do not use these 1. For receipts that do not need special codes, enter taxable gross receipts
codes unless they apply to you. and deductible gross receipts. Do not enter qualifying food, medical and
transportation deductions that must be reported with a special code. Leave
Industry Special Code Column B blank.
Transportation S 2. For qualifying food and medical deductions and transportation receipts needing
Interstate Telecommunications T special codes, make a separate entry for each business location and each
Certain Health Care Practitioners1 M special code. Enter the appropriate special code in Column B. See Column B
Food Retailer2 F
instructions above.
These codes alert the department’s computer to a special rate or distribution Excluded from gross receipts totals are gross receipts tax, governmental gross
requirement that may apply to your industry or to the type of deduction you are taking.
receipts tax and leased vehicle gross receipts tax. These amounts do not appear
in Column D.
Special reporting instructions apply to interstate telecommunication companies
and transportation companies. Contact the department or your local district ofice. COLUMN E: A taxpayer must maintain in his possession a nontaxable transaction
Request publications FYI-403 and FYI-290 or view them online at www.tax.state. certiicate (NTTC) or other acceptable evidence or documentation for each deduction
nm.us/. claimed in this column. Deductions cannot exceed gross receipts reported in Column
D for the same location. Business expenses are not deductible from
COLUMN C: Enter Location Code from Gross Receipts Tax Rate Schedule. gross receipts. For a listing of available deductions, please see FYI-105: Gross
Please check that the location code corresponds to the municipality or county listed Receipts and Compensating Taxes: An Overview available online at http://www.tax.
in Column A. Generally, the out-of-state Location Code is 88-888, but report under state.nm.us/trd_pubs.htm.
Location Code 77-777 all receipts from performing research and development
services outside New Mexico the product of which is initially used in New Mexico. Taxpayers reporting deductions under the special codes “M” (medical) and “F” (food)
Use Location Code 55-055 for governmental gross receipts tax (only a government must report them separately from other deductible and taxable receipts. Deductible
agency can use this code), 44-444 for leased vehicle gross receipts tax, and 44-455 receipts with the “M” and “F” codes stand alone on separate lines of the CRS-1 Form.
for leased vehicle surcharge. Use another line for all other gross receipts as usual, but leave Column B blank.
Food retailers do NOT enter on the CRS-1 Report any receipts for
sales paid for by federal food cards.
1 Only licensed health care practitioners reporting deductions under Section 7-9-93 NMSA 1978 use this special code. All
other receipts reported by licensed health care practitioners should not show a special code in Column B. Use a separate COLUMN F: Column D minus Column E. This amount can never be less than
line for other types of medical deductions. For more information on who qualiies for the special code M deduction, please
see FYI-202. zero.
2 Only food retailers reporting deductions under Section 7-9-92 NMSA 1978 use this special code. Do NOT claim COLUMN G: Enter the rate from the Gross Receipts Tax Rate Schedule or a
deductions for federal food stamp sales paid for with food cards. Not all food retailers qualify for the special code F
deduction. For more information on who qualiies, please see FYI-201. special tax rate if you entered “S” or “T” in Column B. See the instructions for Column
B.

- 8 -

The interest is $2.05. Enter this amount on Line 6.
interest due for one day. Multiply $.41 by ive (the number of days the payment is late).
calculate interest, multiply $1,000 by .041% (.00041). The result is $.41, which is the
online at www.tax.state.nm.us/. Example: Taxpayer’s tax due on Line 4 is $1,000. The payment is ive days late. To
CRS-1 Form. You can request the form RPD-41299 from your local district tax ofice or
Holiday deduction, you will also need to complete form RPD-41299 and attach it to your Tax Due x .00041 x Number of Days Late = Interest Due
NOTE: If you are reporting receipts that are deductible under the Gross Receipts Tax
for each day the payment is late. The formula is:
Withholding Taxes Credit . Prior to January 1, 2008, calculate interest at .041% of Line 4 LINE 6: INTEREST
RPD-41323 Compensating and Unpaid Doctor Services
Gross Receipts,
effective January 1, 2008.
Withholding Taxes Credit that originated prior to January 1, 2008, may still be subject to the 20% penalty threshold
RPD-41239; RPD-41244 Compensating and
Gross Receipts, Technology Jobs Tax Penalty is calculated on the outstanding tax due balance. Any outstanding tax NOTE:
Credit Automated Clearinghouse (ACH) taxpayers.
RPD-41300 Gross Receipts Tax
Service for Resale Tax REPORT EVEN IF NO TAX IS DUE. See FYI-401 for special payment methods for
Withholding Taxes THE MINIMUM $5.00 PENALTY ALSO IS IMPOSED FOR FAILURE TO FILE THIS
RPD-41238; RPD-41243 Compensating and Rural Job Tax Credit
Gross Receipts, the tax due or a minimum of $5.00, whichever is greater.
manner but the maximum amount of penalty that can be imposed increases to 20% of
Withholding Taxes Small Business Tax Credit After January 1, 2008, penalty is calculated at the same monthly rate and in the same
RPD-41297; RPD-41298 Compensating and Research & Development
Gross Receipts,
Credit due or a minimum of $5.00, whichever is greater.
None. Gross Receipts Tax with Small Business Tax month (any fraction of a month is a full month) the payment is late, up to 10% of the tax
Laboratory Partnership January 1, 2008, penalty is calculated at a rate of 2% of Line 4 per month or partial
Penalty is applied for failure to pay or ile on time. Prior to LINE 5: PENALTY.
RPD-41212 Withholding Taxes
RPD-41167; RPD-41168; Compensating and Investment Credit
Gross Receipts, . Add Lines 1, 2 and 3.LINE 4: TOTAL TAX DUE
RPD-41324 Gross Receipts Tax Hospital Credit state.nm.us/. Use Line 3 only to report tax withheld from wages and gambling winnings.
Telecommunications GRT Tables are included in the CRS-1 Filer’s Kit, or you may view them online at www.tax.
RPD-41288; RPD-41290 Taxes and Interstate Credit operators must include copies of IRS Forms 1099, W2-G or 1042S. Withholding Tax
Compensating, Withholding High-Wage Jobs Tax state, withhold 6% from winnings if required to withhold for federal purposes. Gaming
Gross Receipts, income tax. In addition, operators of gambling establishments must, on behalf of the
Withholding Taxes Penalty Credit employee and who is required to withhold federal income tax must withhold New Mexico
RPD-41328 Compensating and
Double Local Option Tax deriving income from within New Mexico who pays wages or other remuneration to an
Gross Receipts, . Every employer doing business in New Mexico or LINE 3: WITHHOLDING TAX
RPD-41339; RPD-41321 Compensating Taxes Facility Tax Credit
Gross Receipts and Biodiesel Blending is due on the value of these items.).
for resale. The retailer removes items from inventory for personal use. Compensating tax
and Withholding Taxes Credit buyer (Example: A retailer delivers a nontaxable transaction certiicate to purchase items
RPD-41301 Receipts,Compensating
Gross Affordable Housing Tax (3) property or services acquired or purchased for nontaxable use and then used by the
with New Mexico; or
and Withholding Taxes Credit subject to gross receipts tax had the property been acquired from a person with nexus
RPD-41335; RPD-41334 Receipts,Compensating Advanced Energy Tax (2) property acquired from a person located outside New Mexico that would have been
Gross
(1) property that was manufactured by the person using the property in New Mexico;
Form Requirements Claimed Against Tax Credit Take 5.125% of the value of:LINE 2: COMPENSATING TAX.

your local district tax ofice or online at www.tax.state.nm.us/. Long Form and any supplemental pages you may be required to ile.
be completed to apply for and claim these credits. You may request these forms from leased vehicle surcharge). Be sure to include the total from Column H from the CRS-1
on the CRS-1 or CRS-1 Long Forms. Please note there are additional forms that must interstate telecommunications gross receipts tax, leased vehicle gross receipts tax and
The following tax credits may be taken against tax programs that are reported NOTE: the Column H total on Line 1 (includes amounts of governmental gross receipts tax,
Complete Columns A through H and enter LINE 1: GROSS RECEIPTS TAX.
the database.
identiication number. The process is quick and easy once you have been added to CRS-1 INSTRUCTIONS FOR LINES 1 - 7
NET ilers should e-mail us at nmwebile@state.nm.us. Include your 11-digit CRS
the department will have to set up your account using an extra step. First-time CRS- Provide your CRS ID number and telephone number.
www.tax.state.nm.us/ and select “Online Services”. If you have never iled electronically,
If you prefer, you may ile and pay your CRS taxes online by going to our web site at according to the iling frequency listed on your Registration Certiicate.
payment is made. The tax period should be monthly, quarterly or semiannually,
or fee paid to the department. See below for mailing address. Enter the dates for which the tax is reported, not the month the TAX PERIOD:
payment should not be combined on the same check or money order with any other tax
Add Lines 4, 5 and 6. Pay this amount. A CRS LINE 7: TOTAL AMOUNT DUE. Check appropriate box and enter date of transfer.Transfer:
Payment via Automated Clearinghouse Deposit or Federal Wire
web site at www.tax.state.nm.us for information on the current quarterly and daily rate.
Code (IRC). The interest rate changes on a quarterly basis. Please visit the department Check if amending a previously iled return. Amended Report:
at the rate established for individual income tax purposes by the U.S. Internal Revenue
After January 1, 2008, interest continues to be calculated daily but the rate will be set from all pages.
Long Form (including any supplemental pages), enter on line 1 the total of Column H
You are not liable for interest if the total interest is less than $1.00. NOTE: Column F by Column G. Enter total of Column H on Line 1. If you are iling the CRS-1
$1,000 x .00041 x 5 = $2.05 Enter Gross Receipts Tax Due for each line of detail by multiplying COLUMN H:

- 9 -

	6 CRS-1 Forms are provided for you to complete and submit to the
  Department.

	You will receive more CRS-1 Forms in the CRS-1 Filer's Kit mailed every 
  June and December.

	Please ile your CRS-1 Forms in accordance with your iling status: i.e., 
  monthly, quarterly, semi-annually.  If you do not know your iling status, 
  please contact your local district ofice.

	Sign the return and make check payable to Taxation and Revenue Department. 
  Mail to: P.O. Box 25128, Santa Fe, NM 87504-5128

Penalty will be assessed for nonpayment of timely reports. Please indicate your CRS ID number on 
your check.

                    Do not make address changes on the CRS-1 Form.
                   Use the Registration Update, Form ACD-31075, included in this packet.

                                                    NEW MEXICO
  NAME
                                                                   CRS ID NO.

                                                    TAXPAYER'S COPY

                    Keep this copy as part of your records.

                   Tear at perforation and return bottom portion only to:
                    Taxation and Revenue Department
                   P.O. Box 25128, Santa Fe, New Mexico 87504-5128

  Due date: 25th of month following end of report period

COMBINED REPORT FORM, CRS-1                                                                  10/2000
                                                    NEW MEXICO
  NAME                                                                       
                                                    CRS ID NO.
STREET / BOX                                                                     Please complete if not preprinted
CITY, STATE, ZIP

                   Please complete if not preprinted
           Mail To:  Taxation and Revenue Department, P.O. Box 25128, Santa Fe, NM 87504-5128
DEPT. USE LATE FILEDEPT. USE ONLY                                  DEPT. USE ONLY
                                                                   Do not write in this 
                                                                             area

- 10 -

                                                      Go Paperless!

          File the CRS-1 Form online through the Department's web site:

                                                       www.tax.state.nm.us/

                           Click on Electronic Services and choose CRS-NET.

      Municipality / County Special          Location   Gross Receipts          Total         Taxable Gross  Tax    Gross Receipts
A     Name                 BCode*        C   Code     D (Excluding Tax)  E  Deductions       FReceipts      GRate  HTax

      TOTAL COLUMNS D, E and H.                       $                  $                   TOTAL GROSS RECEIPTS 1
          *See instructions for column B.                                                            TAX
Payment made by:  Automated Clearinghouse Deposit                    Date _________________ COMPENSATING TAX     2
		               	Federal Wire Transfer                              Date _________________ WITHHOLDING TAX      3
Check if applicable:  Amended Report                                                        TOTAL TAX DUE        4
TAX PERIOD                                                                                   PENALTY
                                                 through                                                          5
          Month            Day           Year           Month         Day   Year             INTEREST             6
Print                                    NM CRS                       Phone                  TOTAL AMOUNT DUE     7
Name ________________________            ID No. _____________________ No. _________________
Signature of Taxpayer or Agent ________________________________________________________  Title _____________________________________   
Date ______________________
I declare that I have examined this return including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete.

      Municipality / County Special          Location   Gross Receipts          Total         Taxable Gross  Tax    Gross Receipts
A     Name                 BCode*        C   Code     D (Excluding Tax)  E  Deductions       FReceipts      GRate  HTax

          TOTAL COLUMNS D, E and H.                   $                  $                   TOTAL GROSS RECEIPTS 1
          *See instructions for column B.                                                            TAX
Payment made by:  Automated Clearinghouse Deposit                    Date _________________ COMPENSATING TAX     2
		                Federal Wire Transfer                              Date _________________ WITHHOLDING TAX      3
Check if applicable:   Amended Report                                                       TOTAL TAX DUE        4
TAX PERIOD                                                                                   PENALTY
                                                 through                                                          5
                                                                                             INTEREST             6
          Month            Day           Year           Month         Day   Year
Print                                    NM CRS                       Phone                  TOTAL AMOUNT DUE     7
Name ________________________            ID No. _____________________ No. _________________
Signature of Taxpayer or Agent ________________________________________________________  Title _____________________________________   
Date ______________________
I declare that I have examined this return including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete.

- 11 -

State of New Mexico - Taxation and Revenue Department 

CRS-1 - LONG FORM  PAGE 1  
COMBINED REPORT SYSTEM 
 
         Mail to:  Taxation and Revenue Department, 
         P.O. Box 25128, Santa Fe, NM 87504-5128
                                                                                    NEW MEXICO
            NAME
                                                                                    CRS ID NO.
         STREET / BOX
  CITY, STATE, ZIP

 TAX PERIOD                                                               Check if applicable:   Amended report 
                             through                                      Payment made by: 
 Month      Day      Year                      Month      Day Year         Automated clearinghouse deposit  Date ________________
                                                                           Federal wire transfer            Date ________________ 
If additional space is needed, use the supplemental page.
Do not submit a photocopy of these forms to the Department. If additional space is needed, please obtain an original form from your 
local district o�ce or download the form from our web site at www.tax.state.nm.us/

  Municipality / county  Special            Location      Gross receipts   Total            Taxable gross    Tax  Gross 
 A       name          B code*    C         code         D(excluding tax)EdeductionsF             receipts  GrateHreceipts tax

  Enter total of columns D, E and H, this page.
            * See instructions for column B.             $               $                                       $
  If supplemental pages are attached, enter total of all 
 columns D, E and H from this page and all supplemental 
                       pages.                            $               $                                       $

 I declare that I have examined this return, including any accompanying             TOTAL GROSS RECEIPTS
 schedules and statements, and to the best of my knowledge and belief,     1         TAX ALL PAGES
 it is true, correct and complete.
                                                                           2        COMPENSATING TAX

 Signature of Taxpayer or Agent                                            3        WITHHOLDING TAX

                                                                           4        TOTAL TAX DUE

 Print name                                              Phone             5        PENALTY

                                                                           6        INTEREST
 Title                                                   Date
                                                                           7        TOTAL AMOUNT DUE

- 12 -

State of New Mexico - Taxation and Revenue Department 

CRS-1 - LONG FORM Supplemental
COMBINED REPORT SYSTEM 
 
 Page ____ of _____

 NAME                                                                          NEW MEXICO
                                                                               CRS ID NO.

 TAX PERIOD
                        through
 Month     DayYear                         Month     DayYear

Use this page if additional space is needed to report gross receipts from multiple locations. Attach this page 
to Page 1 of the CRS-1 Long Form. 
Do not submit a photocopy of these forms to the Department. If additional space is needed, please obtain an original form from your 
local district o�ce or download the form from our web site at www.tax.state.nm.us/.

  Municipality / county Special            Location  Gross receipts  Total         Taxable gross  Tax  Gross 
 A    name             Bcode*   C          code     D(excluding tax)EdeductionsF   receipts      GrateHreceipts tax

      Total columns D, E and H, this page.
           * See instructions for column B.         $               $                                 $

- 13 -

2010 LEGISLATIVE SUMMARY

The 2010 Legislature met for 30 days in regular session and in a subsequent special session. Acts affecting the
Taxation and Revenue Department (TRD) either administratively or programmatically during the session ap-
pear below in summary. The heading for each entry includes a title or description, the 2010 session law chapter
number, the bill number and the effective date of the law's provisions. All references to statutes are for the New
Mexico Statutes Annotated (NMSA) 1978.

TAX ADMINISTRATION the Taxation and Revenue Department for expenditure in
iscal years 2010 through 2012 to conduct the tax amnesty
Las Cruces Tax Implement Project Bonds program. Any unexpended or unencumbered balance
Chapter 11 [HB-112, SB-95] remaining at the end of iscal year 2012 must revert to the
Sponsors: Rep. Antonio Lujan and Sen. Mary Kay Papen General Fund.
Effective Date: May 19, 2010
This law authorizes the issuance of bonds not INCOME TAXES
to exceed $8,000,000 in net proceeds, secured by tax
increments authorized pursuant to the Tax Increment for Repeal of Deduction for State and Local Taxes
Development (TIDD) Act for the City of Las Cruces Main Chapter 7 [SB-10, Special Session]
Street downtown tax increment development project. Sponsors: This bill is a combination of SB-10 (Sen.
The duration of the authorization for issuance of Carlos R. Cisneros), SB-12 (Sen. Carlos R. Cisneros)
bonds in this act is 25 years. and SB-13 (Sen. Gerald Ortiz y Pino)
Effective Date: Tax years beginning on or after January
Aggressive Gross Receipts Tax Collection 1, 2010
[HM-65] This law amends the deinition of “net income” to
Sponsor: Rep. Jim R. Trujillo repeal the itemized deduction for state and local income and
Effective Date: May 19, 2010 sales taxes that are deductible under federal law for income
This memorial requests the Taxation and Revenue tax purposes. The law also modiies the deinition of “net
Department to implement a public information campaign to income” for taxable years beginning on or after January
educate the public and businesses about gross receipts tax. It 1, 2011 to exclude the amount included in adjusted gross
also urges the department to aggressively enforce and collect income (AGI) that represents a refund of state and local
the gross receipts tax. income and sales taxes that were deducted for federal tax
purposes in taxable years beginning on or after January 1,
Temporary Tax Amnesty Program 2010.
Chapter 2 [SB-2, Special Session]
Sponsor: Sen. Phil A. Griego
Effective Date: March 19, 2010 WITHHOLDING TAX
This law authorizes the Secretary of the Taxation
and Revenue Department, with the concurrence of the Tax Withholding Changes
Governor, to declare an amnesty period of no more than Chapter 53 [HB-120]
180 days within iscal years 2010 and 2011. All revenue Sponsor: Rep. Ben Lujan
collected as a result of the tax amnesty must be identiied and Effective Date: January 1, 2011
reported to the irst session of the ifty-irst legislature. The This legislation combines and conforms withholding
Secretary is authorized to waive interest and penalty during on pass-through entities and oil and gas proceeds into the Oil
this amnesty period on taxes that were due and not assessed and Gas Proceeds and Pass-Through Entity Withholding Tax
prior to the day the amnesty period begins. The amnesty Act. The Act:
•
is to be conducted as a managed audit, but the Secretary exempts residents, but prohibits nonresidents
is authorized to waive certain eligibility requirements of from avoiding withholding by “opting out” of
the managed audit program currently available to eligible withholding or by simply having a New Mexico
New Mexico taxpayers. Waivers could open the amnesty to mailing address;
•
taxpayers TRD is currently pursuing for non-iled returns, makes the amounts of tax deducted and withheld
taxpayers with existing debt and taxpayers who have been under the Act payments of estimated tax;
•
audited in the past who have unreported and unassessed allows all costs deducted by a remitter or paid to
taxes. a remitter for expenses related to production or
This law provides an appropriation of $500,000 to cessation of production from a well to be taken

- 14 -

  into account when computing withholding on                by one-eighth percent (0.125%), from 5.0% to 5.125%.  
  oil and gas proceeds;
•	clariies  that  withholding  is  based  on  the           Electric Generating Facility Gross Receipts
  remittee’s net income;                                    Chapters 78, 77 [HB-261, SB-201]
•	clariies, but does not change, the withholding            Sponsors: Rep. Mary Helen Garcia and Sen. Carlos R. 
  tax rates under the Act;                                  Cisneros
•	makes trusts and estates that distribute income           Effective Date:  July 1, 2010
  to beneiciaries            pass-through entities for       This  legislation  creates  a  new  deduction,  the 
  withholding purposes;                                     Advanced  Energy  Deduction,  and  expands  an  existing 
•	removes the withholding obligation for single-            deduction under Section 7-9-54.3 NMSA 1978. The new 
  member LLC’s that are “disregarded entities”              gross receipts tax and compensating tax deduction is for 
  for federal income tax purposes;                          receipts from selling tangible personal property or services 
•	allows pass-through entities to base withholding          that are eligible generation plant costs to a person that holds an 
  on the prior taxable year’s net income if that            interest in a qualiied generating facility. This new deduction 
  year was a full year;                                     requires  the  eligible  buyer,  who  is  an  interest  holder  in 
•	sets  a  new  threshold  for  withholding  of  $30        the generation facility, to deliver a nontaxable transaction 
  per  quarter,  corresponding  to  nearly  $2,500          certiicate (NTTC) to the seller. This new deduction must be 
  of  annual  income  and  equivalent  to  $10  of          reported separately on a form approved by the Taxation and 
  withholding  per  month  (the  threshold  for             Revenue Department and the NTTC must clearly display 
  pension and annuity withholding);                         a notice that the deduction is required to be reported. This 
•	allows  remitters  or  pass-through  entities  to         deduction would only be available to a qualiied generating 
  agree with a remittee or owner that the remittee          facility  for  a  10-year  period  from  the  year  development 
  or owner will pay the amount that the remitter            of the qualiied generating facility begins. This deduction 
  or pass-through entity would have been required           cannot be claimed for the same qualiied expenses for which 
  to withhold and remit on behalf of the remittee           a taxpayer claims the advanced energy tax credit (Sections 
  or owner;                                                 7-2-18.25  and  7-2A-25),  the  advanced  energy  combined 
•	for remitters or pass-through entities that enter         reporting tax credit (Section 7-9G-2) or the gross receipts 
  into such agreements, removes liability for the           tax deduction under Section 7-9-54.2 NMSA 1978.
  withholding if the remittee or owner fails to pay          Formerly, Section 7-9-54.3 NMSA 1978 offered a 
  the withholding until the Taxation and Revenue            deduction from gross receipts for receipts from selling wind 
  Department  notiies  the  remittee  or  pass-
                                                            generation nacelles, rotors or related equipment to a federal 
  through entity; adds deinitions for several key 
                                                            or New Mexico governmental entity if such equipment was 
  terms, such as “net income” and “partnership”; 
  removes  the  requirement  for  pass-through              installed on a supporting structure. This law expands that 
  entities to withhold on net income of nonproits           deduction to include sales of solar generation equipment to 
  or federal, state, local or tribal governments, and       a government for the purpose of installing a wind or solar 
                                                            electric generation facility. This deduction cannot be taken 
•	requires employers with more than 50                      for receipts from an expenditure for which a taxpayer claims 
  employees, and who do not have a Department               the  advanced  energy  tax  credit  (Sections  7-2-18.25  and 
  of Workforce Solutions iling requirement,                 7-2A-25) or the advanced energy combined reporting tax 
  to electronically ile an information return 
                                                            credit (Section 7-9G-2). 
  with TRD and the Workers’ Compensation 
  Administration.
                                                            GROSS RECEIPTS TAXES -  
                                                            LOCAL OPTION
GROSS RECEIPTS TAXES - 
GENERAL                                                     Business Retention Gross Receipts Tax and Gaming Tax 
                                                            Chapter 31 [HB-203]
Gross Receipts Tax Rate Increase                            Sponsor: Rep. Thomas A. Garcia
Chapter 7 [SB-10, Special Session]                          Effective Date:  March 4, 2010
Sponsors: This bill is a combination of SB-10 (Sen. Carlos   This law authorizes any county with a “racino” to 
R. Cisneros), SB-12 (Sen. Carlos R. Cisneros) and SB-13     impose a new countywide County Business Retention Gross 
(Sen. Gerald Ortiz y Pino)                                  Receipts Tax (CBRGRT) to provide funds to retain local 
Effective Date:  July 1, 2010                               businesses in the county. Revenue from the tax may also 
This law increased the state gross receipts tax rate        be used for “administration of the county” and other uses. 
                                                            The tax can be imposed at a rate of up to 1/4% in 1/16% 
                                                           2

- 15 -

increments. Imposition of the tax requires approval from County Hospital Gross Receipts Purposes
voters in the areas of the county outside of municipalities. Chapter 75 [SB-234]
The question may be submitted to the voters as a separate Sponsor: Sen. Stephen H. Fischmann
countywide question at a general election or at a special Effective Date: July 1, 2010
election. This law amends Section 7-20E-12.1 NMSA 1978
The law creates a new credit against the CBRGRT to add language concerning the purpose of the county
for racinos, called the County Gaming Tax Credit. A racino hospital emergency gross receipts tax. In addition to the
may claim the credit if it is in a county that has imposed the existing purposes, it adds the design and construction of a
CBRGRT (at any rate) and the racino had a net take of less county hospital facility, and also that the money may be used
than $15 million in the prior calendar year. A racino can claim for acquisition of land or buildings. This law also allows
a credit equal to 50% of its gaming tax liability, provided the majority of members of the governing body that has
that the amount of the total credit claimed by a racino cannot enacted an ordinance imposing the tax to enact an ordinance
exceed $750,000 in any New Mexico iscal year. This law extending the period for an additional 20 years prior to the
also creates an annual distribution to counties imposing the date of delayed repeal of the ordinance, and in that ordinance
CBRGRT equal to the balance of the net receipts attributable to modify the purposes for which the revenue is dedicated.
to the CBRGRT for the prior iscal year after the General
Fund has retained an amount equal to the County Gaming
COMPENSATING TAX
Tax Credits allowed in that county in the prior iscal year.
If a taxpayer claims the credit in a prior iscal year
Compensating Tax Rate Increase
for an amount exceeding the amount distributed to the state
Chapter 7 [SB-10, Special Session]
from the proceeds of the CBRGRT in the county where
Sponsors: This bill is a combination of SB-10 (Sen.
the taxpayer is located, the taxpayer will owe the state an
Carlos R. Cisneros), SB-12 (Sen. Carlos R. Cisneros)
amount equal to the excess credit. The taxpayer will not be
and SB-13 (Sen. Gerald Ortiz y Pino)
allowed to claim the credit again until that amount has been
Effective Date: July 1, 2010
remitted to the state.
This law increased the compensating tax rate by
one-eighth percent (0.125%), from 5.0% to 5.125%.
Capital Outlay Gross Receipts Restrictions
Chapter 44 [HB-30]
Expansion of Compensating Tax Imposition
Sponsor: Rep. Jim R. Trujillo
Chapter 7 [SB-10, Special Session]
Effective Date: July 1, 2010
Sponsors: This bill is a combination of SB-10 (Sen.
This law allows all municipalities and counties
Carlos R. Cisneros), SB-12 (Sen. Carlos R. Cisneros)
to impose the capital outlay gross receipts tax, regardless
and SB-13 (Sen. Gerald Ortiz y Pino)
of their prior local option enactments. Formerly, only
Effective Date: July 1, 2010
municipalities that have enacted all increments of municipal
This law amends the compensating tax to extend
gross receipts tax and municipal infrastructure gross receipts
the imposition of the tax to include sales in New Mexico by
tax could impose the municipal capital outlay gross receipts
an out-of-state business. Under previous law, sales in New
tax. Similar requirements were imposed on counties who
Mexico by an out-of-state business that did not have nexus
wished to impose the county capital outlay gross receipts
with the state were not taxed under either the gross receipts
tax. This legislation also allows the revenue from the county
or compensating taxes.
capital outlay gross receipts tax to be dedicated to any county
infrastructure purpose.
TAX CREDITS
County Gross Receipts for County Projects
Chapter 82 [SB-162] Affordable Housing Tax Credit Use & Vouchers
Sponsor: Sen. John M. Sapien Chapter 17 [SB-144]
Effective Date: July 1, 2010 Sponsor: Sen. Nancy Rodriguez
This legislation allows counties to pledge the one- Effective Date: July 1, 2010
sixteenth increment of county gross receipts tax for the Previously, the Affordable Housing Tax Credit was
payment of principal and interest due in connection with limited to projects located in counties with populations less
any purpose authorized in Section 4-62-1 NMSA 1978, than 100,000, thereby excluding Bernalillo, Dona Ana, Santa
or speciic purposes or for any area of county government Fe, and San Juan counties. This law expands the Affordable
services. Housing Tax Credit Act to include all counties. It also adds
materials to the list of those eligible for investment vouchers.

- 16 -

Transport of Dairy Waste for Gas Tax Credit    Chapter               No Solar Panels as Property Tax Improvements
84 [HB-171]                                                          Chapter 30 [HB-233]
Sponsor: Rep. Ben Lujan                                              Sponsor: Rep. Mimi Stewart
Effective Date:  May 19, 2010. (Applicable to tax years              Effective Date:  May 19, 2010 (applicable to tax years 
beginning on or after January 1, 2011, and ending prior              beginning on or after January 1, 2010)
to January 1, 2020.)                                                        This legislation amends Section 7-36-21.2 NMSA 
       This law creates both a personal income tax credit            1978 of the Property Tax Code (“Limitation on Increases 
and a corporate income and franchise tax credit for a taxpayer       in  Valuation  of  Residential  Property”).  The  amendment 
who  owns  a  dairy  or  feedlot  and  transports  agricultural      excludes  the  addition  of  a  solar  energy  installation  from 
biomass  to  a  facility  that  uses  agricultural  biomass  to      being considered a physical improvement for purposes of 
generate  electricity  or  make  biocrude  or  other  liquid  or     the 3 percent limitation on increases to assessed values of 
gaseous fuel for commercial use. The credit is equal to $5.00        residential property. The result is that adding solar systems to 
per wet ton of agricultural biomass that is transported to a         residential property will not increase the property’s assessed 
qualiied facility.                                                   value, unlike other improvements to the property, which, 
       Credits  may  be  sold,  transferred  or  otherwise           by statute, do increase a property’s assessed value. Solar 
transferred to another taxpayer.  Any portion of the credit          system installation is deined as “an installation that is used 
that remains unused in a taxable year may be carried forward         to provide space heat, hot water or electricity to the property 
for a maximum of four consecutive taxable years following            in which it is installed”.  That deinition further states that 
the  taxable  year  in  which  the  credit  originates,  until  the  a solar system installation is one that uses solar panels that 
credit is fully expended. A taxpayer who claims the personal         are not also windows, a dark-colored water tank exposed to 
income tax credit cannot also claim the corporate income             sunlight or a non-vented trombe wall.
tax credit for transportation of the same agricultural biomass 
on which the claim for that agricultural biomass income tax          Natural Heritage Conservation Act 
credit is based. These credits are to be limited to an annual        Chapter 83 [SB-186]
combined total of $5,000,000. Applications for the credit            Sponsor Sen. Carlos R. Cisneros
must be considered in the order they are received.                   Effective Date:  May 19, 2010
       Prior  to  July  1,  2011,  the  Energy,  Minerals  and              This  legislation enacts  the  Natural  Heritage 
Natural Resources Department must adopt rules establishing           Conservation Act.  The  purpose  of  this Act  is  to  protect 
procedures  to  provide  certiication  of  transportation  of        the  State’s  natural  heritage  by  funding  acquisition  of 
agricultural biomass to a qualiied facility.                         conservation and agricultural easements and land restoration 
                                                                     projects to protect land and water available for forests and 
                                                                     watersheds,  natural  areas,  wildlife  and  wildlife  habitat, 
PROPERTY TAXES
                                                                     working farms and ranches, outdoor recreation and trails and 
                                                                     land and habitat restoration and management. 
Albuquerque Bond and Mill Levy Election
                                                                            This  law  also  creates  the  Natural  Heritage 
[HM-24]
                                                                     Conservation  Fund,  which  is  to  be  administered  by  the 
Sponsor: Rep. Rick Miera
                                                                     Energy,  Minerals  and  Natural  Resources  Department 
Effective Date:  May 19, 2010
                                                                     (EMNRD). Money in the Fund is appropriated to EMNRD 
       This  memorial  formally  proclaims  the  House  of 
                                                                     to fund conservation projects. EMNRD is also allowed to 
Representatives’   support of the February     2,  2010, 
                                                                     acquire conservation or agricultural easements by itself or 
general obligation bond and mill levy election for capital 
                                                                     with a conservation entity or qualiied entity.  A conservation 
improvements in Albuquerque Public Schools.  The memorial 
                                                                     entity is deined in the law as a private charitable corporation 
also asks that the Governor formally give his support to this 
                                                                     or trust that has tax exempt status under federal law.  A 
election as well.
                                                                     qualiied  entity  is  deined  as  essentially  a  public  entity, 
                                                                     for  example  a  state  educational  institution  or  a  political 
Veterans Organization Property Tax
                                                                     subdivision of the State.
[SJR-7]
Sponsor: Sen. David Ulibarri
Effective Date:  Immediately upon voter approval                     OIL AND GAS TAXES
       This joint resolution proposes an amendment to the 
New Mexico Constitution that would exempt from taxation              Oil and Gas Conservation Tax Distribution 
the  property  of  a  veterans  organization  chartered  by  the     Chapter 98 [HB-208]
United States Congress and used primarily “for veterans and          Sponsor: Rep. John A. Heaton
their families.”                                                     Effective Date:  May 19, 2010
                                                                            Under  former  law,  the  oil  and  conservation  tax 
                                                                    4

- 17 -

applied to oil and other liquid hydrocarbons, natural gas, MOTOR VEHICLE CODE
CO2, helium, non-hydrocarbon gases and coal. The rate
depended on the balance in the Oil and Gas Reclamation Interlock Fund Eligibility
Fund. The maximum rate was .19% of taxable value with Chapter 29 [HB-207]
.17% of taxable value (or 89.47% of net receipts) distributed Sponsor: Rep. W. Ken Martinez
to the General Fund and .02% (or 10.53% of net receipts) to Effective Date: July 1, 2010
the Oil and Gas Reclamation Fund. This law amends Section This legislation amends Sections 66-8-102 and 66-8-
7-30-4 NMSA 1978 to eliminate the rate dependency and 102.3 NMSA 1978. It provides that an offender who obtains
increase the tax rate on oil to .24% of taxable value when the and installs an ignition interlock device prior to conviction
average price of west Texas intermediate (WTI) crude in the must be given credit at sentencing for the time period the
previous quarter exceeds $70.00 per barrel. It also amends ignition interlock device has been in use. It provides that the
Section 7-1-6.21 NMSA 1978 to increase the distribution to interlock device fee imposed by Section 66-8-102.3(A) must
the Oil and Gas Reclamation Fund to 19.7% of net receipts. be collected by the Motor Vehicle Division and deposited
This law amends Section 70-2-37 NMSA 1978 to allow in the Interlock Device Fund to cover part of the costs of
donations to the Oil and Gas Reclamation Fund. It also amends installing, removing and leasing ignition interlock devices
Section 70-2-38 NMSA 1978 to allow the Oil Conservation for indigent people.
Division (OCD) to make expenditures from the Oil and Gas The law also requires that if money is available in
Reclamation Fund to administer and perform the plugging of the Fund, the Trafic Safety Bureau (TSB) must pay, for
abandoned wells that have not been plugged or that have been one vehicle per indigent offender, up to $50 for installation,
improperly plugged and for the restoration and remediation $50 for removal and $30 monthly for veriied active usage.
of abandoned well sites and associated production facilities Indigence will be determined by the TSB based on proof of
that have not been properly restored and remediated. Under enrollment in one or more speciied types of public assistance
previous law, the OCD was authorized to bring suit against or other criteria approved by the TSB. This law increases
the operator or owner of the minerals for all costs incurred from ive percent to ten percent the maximum percentage of
in plugging a well only when the well was drilled on federal the Interlock Device Fund that can be expended annually by
mineral leases. This legislation removes that restriction. The TSB for the purpose of administering the Fund.
law further authorizes contractors employed by the OCD to
plug a well or restore or remediate a well site or associated Study Antabuse Option on Ignition Interlocks
production facility to sell the equipment and material or [SM-48]
product that is removed and to deduct the proceeds of the Sponsor: Sen. William H. Payne
sales from costs. This law also removes language requiring Effective Date: May 19, 2010
that the equipment and material is to be sold for salvage. This memorial requests the Administrative Ofice of
the Courts, the Motor Vehicle Division of Taxation and
Revenue Department, the Department of Transportation, the
SPECIAL TAX PROGRAMS
Corrections Department and the Department of Public Safety
Cigarette Tax Increase and Tribal Tax Credit to form a task force to study the feasibility of providing a
CHAPTER 6 [HB-3] voluntary disuliram (Antabuse) alternative to the ignition
Sponsor: Rep. Gail Chasey interlock device requirement. The new task force is to report
Effective Date: July 1, 2010 its indings and recommendations to the appropriate interim
This legislation increases the excise tax on cigarettes legislative committee no later than November, 2010.
by $0.75 per pack (from $0.91 per pack to $1.66 per pack).
The additional revenue from the tax increase is directed to Disabled-Accessible Parking Changes
the General Fund. Chapter 74 [SB-209]
The law also revises the cigarette tax exemption for Sponsor: Rep. Jeff Steinborn
tribal cigarette sales to be predicated on certiication by each Effective Date: July 1, 2010
tribe that it has imposed a “qualifying tribal cigarette tax” of This legislation amends Section 28-10-2 NMSA
at least $0.75 per pack. 1978 to provide for training of state and local law enforcement
Using his line-item veto authority Governor oficers in regard to accessible parking for persons with
Richardson removed distributions of cigarette tax revenue disabilities. It also amends Section 66-1-4.1 NMSA 1978 to
to municipalities and counties, and special distributions in mandate that the words “No Parking” be added to the access
iscal year 2011 to early childhood programs. aisle adjacent to a parking space for persons with disabilities.
It also gives further detail on how that access aisle is to be
marked. Section 66-3-16 NMSA 1978 is amended to remove
language linking the placard to the individual’s driver’s

- 18 -

license or identiication card and to provide that a parking       Colonias Infrastructure Project Fund until the distribution is 
placard issued pursuant to that section shall expire four years   less than 4.7 percent of the average of the year-end market 
from the date it was issued instead of upon expiration of the     values of the trust fund for the immediately preceding ive 
license or ID. Language regarding the marking of designated       calendar years, after which the annual distribution would be 
accessible parking spaces and the penalties for unauthorized      4.7 percent of that average. 
use of such spaces is also amended.                                 This law also creates a new section of the Severance 
                                                                  Tax Bonding Act authorizing the State Board of Finance 
Online and Phone Driver’s License Renewal                         to  allocate  5  percent  of  the  estimated  bonding  capacity 
Chapter 42 [HB-25] and Chapter 70 [SB-137]                        annually for qualiied colonias infrastructure projects and to 
Sponsor: Rep. Nathan P. Cote and Sen. Phil A. Griego              issue and sell severance tax bonds, the proceeds of which 
Effective Date:  July 1, 2010                                     are appropriated to the Colonias Infrastructure Project Fund 
  This law amends the Motor Vehicle Code to provide               for purposes certiied by the Colonias Infrastructure Board 
for the renewal of driver’s licenses or identiication cards       to the State Board of Finance, beginning with the bonding 
by telephonic or electronic means. It also provides for the       capacity estimated on January 15, 2012. 
expiration of driver’s licenses 30 days following the holder’s 
stth
21  or 75  birthday, for lexibility in the expiration dates of    Extend Gas Tax Sharing Agreements
identiication  cards,  and  authorizes  pro-ration  of  driver’s  Chapter 15 [SB-59]
license fees.                                                     Sponsor: Sen. Phil A. Griego
                                                                  Effective Date:  May 19, 2010
                                                                    This  legislation  amends  Section  67-3-8.1  NMSA 
OTHER ISSUES
                                                                  1978 relating to the gasoline tax sharing agreements between 
                                                                  the Department of Transportation and certain Indian tribes. 
Magistrate Courts Operations Fund & Fees
                                                                  The law extends the term of such agreements from “up to ten 
Chapter 7 [SB-226]
                                                                  years” to “up to twenty years.”
Sponsor: Sen. Michael S. Sanchez
                                                                    The law also requires a report to be given to the 
Effective Date:  May 19, 2010
                                                                  Legislative  Finance  Committee  and  the  Interim  Revenue 
  This law creates the Magistrate Courts Operations 
                                                                  Stabilization  and  Tax  Policy  Committee  at  the  midpoint 
Fund to provide for the operations of the magistrate and 
                                                                  of the term of any gasoline tax sharing agreement by the 
metropolitan courts.  The fund is to be dissolved July 1, 
                                                                  Secretary of Transportation and the qualiied Tribe.
2014, and any balances remaining in the fund at that time 
revert to the General Fund.  The money in the fund will come 
                                                                  Sunshine Portal Transparency Act 
from a new magistrate courts operations fee, which is added 
                                                                  Chapter 34 [SB-195]
to  Section  66-8-116.3  NMSA  1978  (Penalty Assessment 
                                                                  Sponsor: Sen. Sander Rue
Misdemeanors – Additional Fees).  The fee is $4.00 and 
                                                                  Effective Date:  May 19, 2010
will be collected until May 31, 2014.  The law also amends 
                                                                    This law creates the Sunshine Portal Transparency 
Section 66-8-119 NMSA 1978 to create distributions of fees 
                                                                  Act,  which  requires  the  Department  of  Information 
to the State Treasurer to credit to the Juvenile Adjudication 
                                                                  Technology  (DoIT)  to  develop,  operate  and  maintain  a 
Fund and to the Magistrate Courts Operations Fund.
                                                                  single Internet web site (Sunshine Portal) that is free, user-
                                                                  friendly, searchable and accessible to the public. The portal’s 
Colonias Infrastructure Act and Fund
                                                                  purpose  is  governmental  transparency  and  accountability 
Chapter 10 [SB-279]
                                                                  to  taxpayers. This  law  also  requires  DoIT  to  promulgate 
Sponsor: Sen. Timothy Z. Jennings
                                                                  rules necessary to implement the architecture, information 
Effective Date:  July 1, 2011
                                                                  exchange process and maintenance of the Sunshine Portal. 
  This  law  creates  the  Colonias  Infrastructure  Act 
                                                                  All state agencies are required to comply with the provisions 
to  ensure  adequate  inancial  resources  for  infrastructure 
                                                                  of this Act and rules promulgated. However, nothing in this 
development for colonia recognized communities; provide 
                                                                  Act will require disclosure of information that is conidential 
for  the  planning  and  development  of  infrastructure  in 
                                                                  by state or federal law. 
an  eficient  and  cost-effective  manner;  and  develop 
infrastructure  projects  to  improve  quality  of  life  and 
                                                                  Information to be posted on the Sunshine Portal includes:
encourage economic development. The legislation creates 
the Colonias Infrastructure Board, the Colonias Infrastructure 
                                                                  •	state cash balances by fund;
Trust Fund and the Colonias Infrastructure Project Fund. On 
                                                                  •	summaries of the State’s investment accounts;
July 1 of each year in which adequate money is available 
                                                                  •	annual operating budgets for each state agency, with 
in  the  Colonias  Infrastructure Trust  Fund,  a  $10,000,000 
                                                                    monthly expenditures by category;
annual distribution is to be made from the trust fund to the 
                                                                  •	contracts with a total value greater than $20,000, 
                                                                 6

- 19 -

        naming the recipient and purpose;                         •	  reporting requirements for the taxpayer;
 •	     a monthly breakdown of revenue received by the            •	  a description of inancial obligation of the taxpayer 
        state from taxes, fees, ines or other sources;                if the speciic standards are not met; and 
 •	     special appropriations, budget adjustment requests,       •	  a mandatory review of the incentive no more than 
        reversions and cash balances by state agency;                 every seven years. 
 •	     appropriations  for  capital  projects,  identiied  by 
        project location, type and funding source;                The law also requires the EDD to publish an aggregate list 
 •	     a  directory  of  all  employee  positions,  by  state    of the economic development tax incentives used by each 
        agency, showing each position’s title and salary;         taxpayer annually. 
 •	     links to New Mexico’s statutes, administrative code,          An “economic development tax incentive” means a 
        open meetings and lobbyist regulation;                    credit, deduction, rebate, exemption or other tax beneit for 
 •	     information  on  contracts  entered  into  by  a  state   the primary purpose of promoting economic development 
        agency for any lease, sale or development of state        or offering an advantage to a particular industry or type of 
        land, in addition to information about contracts of       business to do business in New Mexico.
        more than $20,000; and
 •	     an  annual  summary  of  the  state’s  iscal  health,     State Agency Credit Card Processing Fees
        including projected revenues.                             Chapter 64 [SB-77]
                                                                  Sponsor: Sen. Pete Campos
The portal must be available to the public no later than July     Effective Date:  May 19, 2010
1, 2011.                                                              This law adds language to Section 6-10-1.2 NMSA 
                                                                  1978 which allows any state agency to accept payment, by 
Severance Tax Bond Authorization for Tribal                       credit card or electronic means, of any amount due to the 
Infrastructure Projects                                           state under any law or program administered by the agency. 
Chapter 37 [HB-162]                                               The  legislation  allows  a  state  agency  or  local  governing 
Sponsor: Rep. Ben Lujan                                           body to charge a convenience fee to cover the exact fees 
Effective Date:  July 1, 2011                                     imposed by the inancial institution for processing a credit 
        This law amends the Severance Tax Bonding Act             card or electronic transfer transaction.  Those costs will be 
to give priority to tribal infrastructure projects, along with    appropriated to the state agency or local governing body to 
water projects which already have priority for severance tax      defray the cost of processing the transaction. 
bond authorization. The legislation allocates 5 percent of the 
annual estimated severance tax bonding capacity for tribal        Distribution Formula for the Small Counties Assistance 
infrastructure  projects  and  authorizes  the  State  Board  of  Fund
Finance to issue severance tax bonds for this purpose.            Chapter 7 [SB-10]
                                                                  Sponsors: This bill is a combination of SB-10 (Sen. Carlos 
Economic Development Tax Incentive Changes Chapter                R. Cisneros), SB-12 (Sen. Carlos R. Cisneros) and SB-13 
84 [SB-47]                                                        (Sen. Gerald Ortiz y Pino) 
Sponsor: Sen. Timothy M. Keller                                   Effective Date:  July 1, 2010
Effective Date:  May 19, 2010                                         This legislation revises the distribution formula for 
        This  legislation  establishes  guidelines  for  new      the Small Counties Assistance Fund.
economic  development  tax  incentives.  New  incentives 
must include in the enabling statute the following minimum        E911  Committee Testimony to the Legislature
provisions:                                                       [SJM-34]
                                                                  Sponsor: Sen. Richard C. Martinez
 •	     a statement of purpose;                                   Effective Date:  May 19, 2010
 •	     the designation of a responsible agency to establish          This Senate Joint Memorial requests the local level 
        measurable policy goals, track state expenditures,        E911 advisory committee and the state E911 coordinating 
        quantify the state’s return on investment and report      committee  to  ensure  broad  consensus  by  working  with 
        regularly to the Interim Revenue Stabilization and        the Taxation and Revenue Department and other agencies 
        Tax Policy Committee and the Legislative Finance          not included in the governor’s executive orders. The Joint 
        Committee;                                                Memorial also asks the committees to report their indings 
 •	     a  requirement  that  the  Economic  Development          to the Legislature by August 31, 2010.
        Department (EDD) track job creation;
 •	     speciic standards for the taxpayer to qualify for the 
        incentive;

                                                                 7

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REV. 4/2010
OVERVIEW OF GROSS RECEIPTS AND COMPENSATING TAXES

This overview includes a description of gross receipts and com- municipality or other political subdivision of the state; and
pensating taxes; exemptions, deductions and credits available 6. The renting of parking, docking or tie-down spaces or the
for each tax; how and when to report and pay the taxes; account granting of permission to park vehicles, tie-down aircraft or dock
notices issued by the department; and, inally, responses to com- boats (7-9-4.3).
mon questions asked by CRS taxpayers. “CRS” is the Taxation
and Revenue Department’s Combined Reporting System. Using For governmental gross receipts purposes a “facility open to the
the Combined Reporting System you can report one or more of general public” DOES NOT include point-of-sale registers or
the following taxes: electronic devices at a bookstore owned or operated by a public
post-secondary educational institution when the registers or devices
1. Gross Receipts Tax (includes municipal and county taxes) are utilized in the sale of textbooks or other materials required for
2. Compensating Tax courses at the institution to a student enrolled at the institution
3. Withholding Tax* who displays a valid student identiication card.
4. Governmental Gross Receipts Tax
5. Interstate Telecommunications Gross Receipts Tax Exemptions from Governmental Gross Receipts Tax
6. Leased Vehicle Gross Receipts Tax
7. Leased Vehicle Surcharge Receipts subject to one of the following taxes are exempt from
8. Tribal Taxes. governmental gross receipts tax: gross receipts tax; compensating
tax; motor vehicle excise tax; gasoline tax; special fuel supplier's
*A description of withholding tax is included in the withholding tax; the oil and gas emergency school, severance, conservation and
tax table section of the CRS-1 Filer's Kit. ad valorem taxes; resources tax; processors tax; service tax; event
center surcharge (7-9-13.5); stadium surcharge (7-9-13.3); athletic
The form used to report these taxes is the CRS-1 Form. A supply facility surcharge (7-9-41.1) or the boat excise tax (7-9-13.2).
of these forms is enclosed in the CRS-1 Filer’s Kit. The kit is In addition, receipts from the sale of livestock or unprocessed
mailed out every six months in June and December and contains agricultural products are exempt (7-9-18).
a six-month supply of CRS-1 Forms, current gross receipts tax
rates, withholding tax tables, and frequently requested CRS- Deductions from Governmental Gross Receipts Tax
related forms.
Deductions that can be claimed under governmental gross re-
This information is a general explanation of the gross receipts, ceipts are:
compensating and withholding tax laws and is presented as a service
to taxpayers. Because these instructions are intended to provide 1. Receipts from selling tangible personal property to manufac-
general guidance and do not address all speciic circumstances, turers (7-9-46).
they are not binding on the department. If you have any ques-
2. Receipts from sales of tangible personal property (including
tions regarding your particular situation, please contact one of the
prosthetic devices) for resale (7-9-47, 7-9-73).
department’s district tax ofices or the Santa Fe headquarters.
3. Receipts from selling tangible personal property to a U.S. or
New Mexico governmental entity or to the governing body of an
Statutory citations in this publication are to the New Mexico
Indian nation, tribe or pueblo for use on the reservation (7-9-54).
Statutes Annotated (NMSA 1978). The Gross Receipts and
4. Receipts from selling tangible personal property to 501(c)
Compensating Tax Act is compiled as Sections 7-9-1 through
(3) organizations (7-9-60).
7-9-112 NMSA 1978.
5. Receipts from sale of services for resale (7-9-48).
GOVERNMENTAL GROSS RECEIPTS TAX 6. Receipts from sales in interstate commerce (7-9-55).
7. Refunds and uncollectible debts (7-9-67).
A governmental gross receipts tax of 5% is imposed on the receipts 8. Receipts from the sale of prescription drugs and oxygen (7-
of New Mexico state and local governments (except public school 9-73.2).
districts and hospitals) from:
For further information on these deductions see Deductions from
1. The sale of tangible personal property, other than water, from Gross Receipts Tax on pages 7 through 14.
facilities open to the general public;
2. The performance of or admissions to recreational, athletic or Although the governmental gross receipts tax is included in the
entertainment services or events in facilities open to the general Gross Receipts and Compensating Tax Act and reportable in
public; the same fashion as gross receipts and compensating taxes, it is
3. Refuse collection, refuse disposal or both; an entirely separate tax. The location code used by government
agencies for reporting purposes is 55-055.
4. Sewage services;
5. The sale of water by a utility owned or operated by a county,

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LEASED VEHICLE GROSS RECEIPTS TAX 4. Amounts received by persons providing telephone or tele-
AND LEASED VEHICLE SURCHARGE graph services;
5. Fees received by persons for serving as disclosed agents for
In addition to gross receipts tax, a leased vehicle gross receipts another;
tax of 5% is imposed on the receipts of a lessor of automobiles 6. Amounts received by a New Mexico lorist from the sale
when: of lowers, plants, etc., that are illed and delivered outside New
Mexico by an out-of-state lorist, and
1. The lease is for a term of six months or less; 7. Providing intrastate mobile telecommunications services
2. The automobile is part of a leet of ive or more leased ve- (i.e., the services originate and terminate in the same state) to
hicles; customers whose place of primary use is in New Mexico.
3. The vehicle is a passenger automobile that will accommodate
six or fewer adults, and Gross receipts DOES NOT include:
4. The lessor acquired the automobile on or after July 1,
1991. 1. Gross receipts tax, governmental gross receipts tax, leased
vehicle gross receipts tax, interstate telecommunications gross
A $2-per-day leased vehicle surcharge is also imposed except receipts tax and local option taxes.
when the vehicle is leased to a person who signs a statement Ê Example: When the seller passes on tax to the buyer, the
that the vehicle is being rented to temporarily replace a vehicle seller should back out that tax from the total income to arrive at
that is being repaired, serviced or replaced. Report the regular “Gross Receipts,” the amount reported in Column D of the CRS-1
gross receipts tax, the leased vehicle gross receipts tax and the Form. (See example of backing out tax on page 23.)
leased vehicle surcharge on the CRS-1 Form. The location code
for leased vehicle gross receipts tax is 44-444, and the location 2. Cash discounts allowed and taken.
code for the leased vehicle surcharge is 44-455. Ê Example: When a seller offers 2% off for paying cash or for
paying within a certain time frame and the buyer takes advantage
TRIBAL TAXES of the offer, the gross receipts amount is the amount actually
received (sales price less 2%). However, manufacturers’ cou-
The Taxation and Revenue Department has entered into agree- pons redeemable by the seller, i.e. a grocery store, are not cash
ments with the Pueblos of Santa Clara, Santa Ana, Nambe, Laguna, discounts allowed and taken since the seller will be reimbursed
Sandia, Pojoaque, Cochiti, Kewa, Ohkay Owingeh, Taos and for the face value of the coupon. Gross receipts includes cash
Picuris, and the Jicarilla Apache Nation to collect a tax imposed received plus the value of the coupon.
by these tribes. The Taxation and Revenue Department has also
entered into a cooperative agreement with the Albuquerque 3. Gross receipts or sales tax imposed by an Indian nation,
Indian School Governing Board. The agreements also provide tribe or pueblo if the Indian nation, tribe or pueblo has a similar
for mutual credits to the total tax when both the state (including exclusion for New Mexico gross receipts tax.
local option taxes) and tribal taxes imposed on a taxpayer do not
exceed the amount that either imposes individually. 4. Any type of time-price differential (i.e., interest).

The department is authorized to enter into similar agreements 5. Amounts received solely on behalf of another in a disclosed
with all nineteen New Mexico Pueblos and the Mescalaro agency capacity.
Apache Tribe.
6. Amounts received by a New Mexico lorist from the sale of
GROSS RECEIPTS TAX lowers, plants, etc., where the sale is made pursuant to orders
placed with an out-of-state lorist for illing and delivery in New
What is Gross Receipts? Mexico by a New Mexico lorist.

“Gross receipts” means the total amount of money or other What is the Gross Receipts Tax?
consideration received from selling property in New Mexico,
leasing or licensing property employed in New Mexico, granting The gross receipts tax is a tax on persons engaged in business in
the right to use a franchise employed in New Mexico, performing New Mexico for the privilege of doing business in New Mexico.
services in New Mexico or selling research and development The tax is imposed on the gross receipts of persons who:
services performed outside New Mexico the product of which
is initially used in New Mexico. Gross receipts includes receipts 1. Sell property in New Mexico;
from:
Ê Property includes real property; tangible personal property,
1. Sales of tangible personal property handled on consign- including electricity and manufactured homes, licenses (other
ment; than the licenses of copyrights, trademarks or patents and fran-
2. Commissions received; chises).
3. Amounts paid by members of any cooperative associa-
tion; 2. Perform services in New Mexico;

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Ê Service includes construction activities and all construction 1. If you are in the construction business, your tax rate is de-
materials that will become part of the construction project. termined by the location of each construction project.

3. Lease or license property employed in New Mexico; 2. If you are in the business of selling real estate, your business
location is the location of each property sold.
4. Grant a right to use a franchise employed in New Mexico,
and 3. If you are a utility, your tax rate is determined by the location
of the meter used to record the amount of service consumed by
5. Sell research and development services performed outside the customer or the location of telephone set. For cellular service
New Mexico when the product of the service is initially used in it is the location of the customer's place of primary use.
New Mexico.
4. If you are located in a municipality within a county, your
What is the Gross Receipts Tax Rate rate is that of the municipality.
and How is it Determined?
5. If you are outside any incorporated municipality, your rate
The gross receipts tax rate varies throughout the state from is that of the county.
5.125% to 8.6875%. The total rate is a combination of the rates
imposed by: 6. If you have more than one store within one municipality or
county, i.e., three stores in Las Cruces, you have only one busi-
1. The state, ness location (Las Cruces) for reporting purposes.
2. The counties, and
3. The municipalities. 7. If you have no business location in New Mexico but you
have a resident salesperson, your business location is the location
The total gross receipts tax is paid to the state. The state keeps of the salesperson.
its portion and distributes the counties' and municipalities' por-
tions to them. 8. If you have no business location or resident salesperson but
are liable for gross receipts tax (for instance, because you lease
The state’s portion of the gross receipts tax, which is also the property used in New Mexico or perform a non-construction
largest portion of the tax, is determined by state law. Changes service in New Mexico), you are liable for tax at the rate for out-
occur no more than once a year, usually in July. of-state businesses, the state gross receipts tax rate of 5.125%.
Use the out-of-state business location code, 88-888.
The counties’ portion of gross receipts tax is determined by the
county commissions. These increments can go into effect in 9. If you have multiple business locations under one identii-
January and July of every year. cation number, you should report the receipts for each location
separately on a single CRS-1 Form and be sure the tax rate matches
Municipal councils determine the municipalities’ portion of the location by checking the gross receipts tax rate schedule.
gross receipts tax. Like the counties, changes can go into effect
in January and July of every year. 10. If you are a craftsperson who sells at craft fairs where you
rent a booth, because you can be expected to be found at the booth
Because the combined gross receipts tax rate can change ef- for the duration of the fair, that booth is a business location and
fective January and July of every year, we issue a new tax rate your tax rate is based on the location of the crafts fair.
schedule twice a year and include it in the CRS-1 Filer’s Kit.
You can also view the tax rate schedule online: www.tax.state. 11. If you are located outside New Mexico and sell research and
nm.us/. Always check the gross receipts tax rate schedule to see development services the product of which is initially used in
if the rate for your business location(s) has changed. Due to the New Mexico, use the state rate, 5.125%. Use the special business
frequency of tax rate changes, the department does not send out location code of 77-777 for those transactions only.
separate notices of those changes.
12. In some counties, more than one location code exists for that
part of the county outside all municipalities. Examples: State
Business Location Determines Tax Rate
Fairgrounds in Bernalillo County, Santa Clara Pueblo in Rio
Arriba and Santa Fe Counties and Taos Airport in Taos County.
Generally, the gross receipts tax rate is based on the business
Use the codes for these speciic areas when your location is in
location of the seller or lessor, NOT on the location of the buyer
one of them.
or lessee. If your business is located in Albuquerque and you
deliver or lease to someone in Santa Fe, you are liable for tax at 13. If you transact business with tribal non-members on tribal
the Albuquerque rate. territory, use the tribal location of the sale or delivery rather than
your principal business location if that tribe or pueblo has entered
For reporting purposes, business locations are broken down by into a cooperative agreement with New Mexico. Evidence that
county and municipality on the tax rate schedule. Here are some a tribe or pueblo has entered into a cooperative agreement is a
guidelines for determining your business location: separate location listing on the Gross Receipts Tax Rate Schedule.

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Determining Taxability of Gross Receipts Agricultural Exemptions

Gross receipts are either taxable, exempt or deductible. If your 1. Receipts from selling livestock or horses and the receipts
receipts do not fall under any exemption or deduction, those of growers, producers and trappers from selling live poultry,
receipts are taxable. The exemptions and deductions from gross unprocessed agricultural products (i.e., a bale of hay, a head of
receipts tax that follow are grouped in categories, i.e., agricul- lettuce, an unroasted sack of green chile), hides or pelts
ture, construction, governmental entity, for convenient reference. (7-9-18).
Where helpful we have included an example of the application Ê Exception: receipts from selling dairy products at retail are
of the exemption or deduction, and in cases where an exception not exempt.
to qualifying for the exemption or deduction exists, we have Ê NOTE: this exemption also applies to governmental gross
included the exception. Please refer to the Gross Receipts and receipts tax.
Compensating Tax Act regulations for speciics on exemptions
and deductions from gross receipts tax. 2. Receipts of persons from feeding or pasturing
livestock (7-9-19).
Exemptions from Gross Receipts Tax Ê Example: penning, handling or training livestock.

What Is an Exemption? Disabled Street Vendor Exemption
Exemptions from gross receipts tax are receipts which are not
Receipts of disabled street vendors from the sale of goods
taxable and do not have to be reported. Therefore, if all your
(7-9-41.3).
receipts are exempt, you do not have to register with the depart-
ment for gross receipts tax purposes (you may have to register for
Food Stamp Exemption
withholding tax or to obtain nontaxable transaction certiicates,
though) nor do you have to report those receipts on the CRS-1
Receipts of retailers from the redemption of food stamps
Form. However, if you have exempt, deductible and taxable
(7-9-18.1).
receipts, you should register and report only the deductible and
taxable receipts on the CRS-1 Form. For administrative purposes,
Governmental Entity Exemptions
receipts on which no state tax may be imposed because of federal
preemption are considered exempt. 1. Receipts of the federal government, State of New Mexico, or
any Indian nation, tribe or pueblo from activities or transactions
Federal Preemption occurring on its sovereign territory, or any agency or political
subdivision of the foregoing, e.g., New Mexico cities, counties
In some cases, federal law bars New Mexico from imposing and public schools. Receipts of any foreign nation are exempt
its tax on transactions which, absent the preemption, would be when exemption is required by treaty to which the United States
subject to tax. For example, federal law prohibits the application is a party (7-9-13).
of state and local gross receipts tax on many transactions with Ê Exception: receipts of political subdivisions of the state from
Indian nations, tribes or pueblos or their agencies or members if owning or operating a gas or electric utility or a municipal cable
the transaction takes place on the tribe’s territory. Receipts from television system are not exempt.
transactions with non-members, even when on a tribe’s territory, Ê NOTE: certain receipts of the state and its subdivisions
are not preempted. If you are uncertain whether preemption ap- may be subject to governmental gross receipts tax (see page 1).
plies to your transaction(s), contact the department.
Ê NOTE: This preemption does not apply to taxes imposed 2. Receipts of instrumentalities of the armed forces of the
by an Indian nation, tribe or pueblo. United States (7-9-31).
Ê Example: receipts of base exchanges or post exchanges.
New Mexico is also pre-empted from imposing: Ê Exception: receipts of a concessionaire operating on a military
base or federal area are not exempt.
1. Gross receipts tax on receipts of Job Corps contractors from 3. Sales to Indian nations, tribes, or pueblos, or to their members,
operating any Job Corps center, program or activity; are exempt if the transaction takes place on the tribe's territory
(see "Federal Preemption" on this page).
2. Local option gross receipts taxes on receipts of a provider
of direct satellite service from providing direct satellite service, Insurance Company and Bail Bondsman Exemption
and
Receipts of insurance companies or their agents from premiums
and receipts of property bondsmen from security for a bail bond
3. Gross receipts tax on receipts of federal and state credit
(7-9-24).
unions.
Interest and Dividend Exemption
List of Exemptions
Interest on money loaned or deposited; dividends or interest from
The following receipts are exempt from the gross receipts tax: stocks, bonds or securities; and receipts from the sale of stocks,
bonds or securities (7-9-25).

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Interstate Telecommunications Services Exemption Oil, Natural Gas and Mineral Exemptions
1. Oil, natural gas or liquid hydrocarbons subject to the Oil
Receipts from selling or providing interstate telecommunications and Gas Emergency School Tax Act that are sold for resale, for
services (7-9-38.1). consumption outside New Mexico or for use as an ingredient or
Ê NOTE: these services are subject to the interstate telecom- component part of a manufactured product (7-9-33).
munications gross receipts tax.
2. Natural gas or liquid hydrocarbons subject to the Natural
Isolated or Occasional Sale Exemption Gas Processors Tax Act that are sold for resale, for consumption
outside New Mexico or for use as an ingredient or component
Receipts from the isolated or occasional sale or leasing of property part of a manufactured product (7-9-34).
or service by a person who is not in the business of selling or
leasing the same or similar property or service (7-9-28). 3. Natural resources subject to the Resources Excise Tax Act
that are sold for resale or for use as an ingredient or component
Mobile Telecommunications Services Exemption part of a manufactured product (7-9-35).

Receipts of a home service provider from providing mobile 4. Receipts from the sale or lease of oil, natural gas or mineral
telecommunications services to persons whose place of primary interests (7-9-32).
use is outside New Mexico, regardless of where the mobile
telecommunications services originate, terminate or pass through 5. Receipts from the sale of oil, natural gas or liquid hydro-
(7-9-38.2). carbons consumed as fuel in the pipeline transportation of
such products (7-9-36).
Municipal Event Center Exemption
Out-of-State Services Exemption
Receipts from selling tickets, parking, souvenirs, concessions,
programs, adverting, merchandise, corporate suites or boxes, Receipts from services performed outside the state when the prod-
broadcast revenues and all other products or services sold at or uct of the service is initially used in New Mexico (7-9-13.1).
related to a municipal event center or related to activities occur- Ê Exception: receipts from performing a research and develop-
ring at the event center on which an event center surcharge is ment service are not exempt unless the service is: sold between
imposed pursuant to the Municipal Event Center Funding Act afiliated corporations; sold to the United States government by
(7-9-13.5). operators of national laboratories (other than 501(c)(3) organi-
zations); or sold to persons (other than 501(c)(3) organizations)
Nonproit Organization Exemptions operating national laboratories.

1. Receipts of nonproit entities from operating facilities de- Racetrack Exemption
signed and used for providing accommodations for retired elderly
persons (7-9-16). Receipts of horsemen, jockeys and trainers from race purses at
New Mexico horse racetracks and receipts of racetracks from
2. Receipts of 501(c)(3) organizations and receipts of 501(c) gross amounts wagered (7-9-40).
(6) organizations from conducting chamber of commerce, visitor
bureau and convention bureau activities (7-9-29). School Event Service Exemption
Ê Exception: receipts from an unrelated trade or business are
taxable. Receipts from refereeing, umpiring, scoring or other oficiating
at school events sanctioned by the New Mexico Activities As-
3. Receipts from dues and registration fees of nonproit social, sociation (7-9-41.4).
fraternal, political, trade, labor or professional organizations and
business leagues (7-9-39). Stadium Exemption
Ê NOTE: 501(c)(4) civic leagues, civic organizations and so-
cial welfare organizations are social organizations and included Receipts from selling tickets, parking, souvenirs, concessions,
in this exemption. programs, advertising merchandise, corporate suites or boxes,
broadcast revenues and all other products, services or activities
4. Receipts of a minister of a 501(c)(3) religious organization sold at, related to or occurring at a minor league baseball stadium
from performing religious services (7-9-41). on which a stadium surcharge is imposed under the Minor League
Baseball Stadium Funding Act (7-9-13.3).
5. Receipts of homeowners’ associations from membership
fees, dues and assessments from owner-members to be used for Textbook Exemption
tax, insurance and maintenance expenses for commonly owned
areas and facilities (7-9-20). Receipts of certain bookstores from selling textbooks and other
materials required for courses at a public post-secondary educa-
tional institution to a student enrolled at the institution (7-9-13.4).

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Ê Requirement: bookstore must be located on the campus of the 2. Farmer or rancher statement - a signed statement from a farmer
institution and operated by contract with the institution. or rancher declaring that the person is regularly engaged in the
Ê Requirement: the student must present a valid student iden- business of farming or ranching (used for agricultural deductions
tiication card. under 7-9-58, 7-9-62 and 7-9-109).

Vehicle, Boat and Fuel Exemption 3. Jewelry manufacturer statement - a written statement declaring
the purchaser is engaged in the business of manufacturing jewelry
1. Receipts from selling vehicles subject to the motor vehicle and will use the property purchased in manufacturing jewelry
excise tax and vehicles exempt from the motor vehicle excise (used only for jewelry manufacturing deduction under 7-9-74).
tax pursuant to Section 7-14-6 NMSA 1978 (7-9-22).
Ê Exception: the sale of manufactured homes is subject to 4. Out-of-state buyer certiicate, Type NTTC-OSB (see descrip-
tax. tion on page 7).

2. Receipts from selling boats subject to the boat excise 5. Border state certiicate, Type BSC (see description on page
tax (7- 9-22.1). 7).

3. Receipts from sales of gasoline, special fuel or alternative 6. Multijurisdiction uniform sales and use tax certiicate, Type
fuel on which the gasoline, special fuel excise or alternative fuel MTC (see description on page 7).
excise tax has been paid and not refunded (7-9-26).
7. Solar energy deduction written statement - a written state-
4. Receipts from selling fuel, oxidizer or a substance that ment declaring the equipment or services purchased are for the
combines fuel and oxidizer to propel space vehicles or to oper- exclusive use in the installation or operation of a solar energy
ate space vehicle launchers (7-9-26.1). system (use only for solar energy systems deduction; 7-9-112).

5. Receipts from selling fuel to a common carrier to be 8. Other documents including invoices, purchase orders, con-
loaded or used in a locomotive engine (7-9-110). tracts, etc. but only when an NTTC is not required. These docu-
Ê NOTE: This exemption was to become effective July 1, 2010, ments cannot be used in place of NTTCs.
if the Economic Development Department would have certiied
to the Taxation and Revenue Department by January 1, 2010, that Nontaxable Transaction Certiicate (NTTC)
construction of a railroad locomotive refueling facility project
has commenced. Such a certiication was never received by the The NTTC is the only acceptable substantiation for certain deduc-
Taxation and Revenue Department; as a result this exemption is tions. The buyer obtains an NTTC from the Department to give
not currently available. to a seller. The NTTC entitles the seller to deduct those receipts
when determining taxable gross receipts. In practice, this means
Wage Exemption the buyer is able to purchase goods and services free of the gross
receipts tax that is usually passed on to the buyer. The seller must
Receipts of employees from wages and salaries (7-9-17). accept an NTTC in "good faith", reasonably conident that the
Ê NOTE: commissions received as an employee are also buyer issuing the NTTC will use the property or service in the
exempt. manner stated on the NTTC. The seller needs only ONE NTTC
from each buyer to cover all transactions OF THE SAME TYPE
Deductions from Gross Receipts Tax with that buyer.

What Is a Deduction? All taxpayers who wish to execute NTTCs are required to: 1) reg-
ister with the Taxation and Revenue Department, and 2) complete
A deduction from gross receipts, like an exemption, results in an the Application for Nontaxable Transaction Certiicates or apply
amount not subject to tax. However, unlike an exemption, YOU on-line. The Department may refuse to issue NTTCs to delinquent
MUST REPORT ON THE CRS-1 FORM BOTH THE GROSS taxpayers until the delinquency is cleared. The taxpayer may
RECEIPTS RECEIVED (in Column D) AND THE AMOUNT OF request additional NTTCs online at:
DEDUCTIONS YOU ARE ELIGIBLE TO CLAIM AGAINST http://ec3.state.nm.us/nttcnet/tplogon.aspx
THOSE GROSS RECEIPTS (in Column E).
Starting January 1, 2004, the number of types of NTTCs were
Substantiation Required to Support a Deduction
consolidated as follows:
The Department requires taxpayers to retain substantiation in
their records when claiming a deduction from gross receipts. ● The Type 2 NTTC is good for transactions formerly requiring
That substantiation can be one of the following, depending on a Type 1, 2, 3 or 4 NTTC.
the deduction being claimed: ● The Type 5 NTTC is good for transactions formerly requiring
a Type 5, 8 or 13 NTTC.
1. Nontaxable transaction certiicate (see description on this ● The Type 6 NTTC is good for transactions formerly requiring
page). a Type 6 or 7 NTTC.

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●  The Type 9 NTTC is good for transactions formerly requir-        Multijurisdiction Uniform Sales and Use Tax Certiicate
   ing a Type 9 or 14 NTTC.
●  The Type 15 NTTC remains as is.                                  New Mexico sellers may accept the Multijurisdiction Uniform 
●  The Type 16 is good for transactions formerly requiring a        Sales and Use Tax Certiicate (MTC) from out-of-state buyers 
   Type 16 or Type D NTTC.                                          not required to register in New Mexico who:
●  The Type NTTC-OSB remains as is.
                                                                    1)  wish to buy goods for resale or incorporation as ingredients 
The Department stopped issuing  Type 1, 3, 4, 7, 8, 13, 14 or Type  or components of a manufactured product, or
D NTTCs as of January 1, 2004. The Department will continue         2) wish to buy a manufacturing service that will be performed 
to recognize those NTTC types in audit situations when the seller   on a manufactured product or ingredient or component part 
has accepted the NTTCs in good faith, with reasonable coni-         thereof.
dence that the buyer executing the NTTC will use the property       Ê  NOTE: MTCs are not issued by New Mexico.
or service in the manner stated on the NTTC.
                                                                                   List of Deductions
For more information on the use of NTTCs, please request 
FYI-204: Nontaxable Transaction Certiicates on-line at              A list of deductions from gross receipts is presented below along 
http://www.tax.state.nm.us/trd_pubs.htm or request it from your     with any special requirements for claiming the deduction and 
local district tax ofice.                                           speciic documentation required to support the deduction (e.g. an 
                                                                    NTTC). If your receipts do not fall under one of the deductible 
Type NTTC-OSB                                                       categories, you do not have any deductions from gross receipts. 
                                                                    BUSINESS EXPENSES (that is, telephone and electric bills, 
Unlike other NTTCs, which are obtained from the department by       supply purchases, etc.) ARE NOT DEDUCTIBLE FOR GROSS 
the buyer, the Type  NTTC-OSB must be obtained by the seller.       RECEIPTS TAX PURPOSES.
The New Mexico seller completes the Application for  Nontax-
able Transaction Certiicates and the seller then provides the       Advanced Energy Deduction
NTTC-OSBs to their out-of-state customers who: 
                                                                    Receipts from selling tangible personal property or services 
1) are purchasing tangible personal property either for resale      that are eligible generation plant costs to a person that holds an 
or for use as an ingredient or component part of a manufactured     interest in a qualiied generating facility. 
product, or                                                         Ê  Requirement: the holder of the interest in a qualiied gen-
2) are purchasing a manufacturing service to be performed           erating facility must execute a Type 10 NTTC to the seller, 
directly upon tangible personal property the purchaser is in the    which requires a certiicate of eligibility from the Department 
business of manufacturing, or ingredient or component parts         of Environment.
thereof.                                                            Ê  Requirement: a taxpayer claiming this deduction must report 
                                                                    the deduction on form RPD-41349 Advanced Energy Deduction 
The  buyer  must  provide  all  the  required  information  on  an  as well as on the CRS-1 Form.
NTTC-OSB and give it to the New Mexico seller who will keep         Ê  NOTE: this deduction is only available for a ten-year period 
it on ile along with all other NTTCs the seller receives. The       from the year development of the qualiied generating facility 
documentation requirements for accepting NTTC-OSBs should           begins and expenditures are made.
be carefully observed. See Out-of-State Buyer Deduction on          Ê  NOTE: this deduction cannot be claimed for the same quali-
page 12 for those requirements.                                     ied expenses for which the taxpayer claims a credit under Sec-
                                                                    tions 7-2-18.25, 7-2A-25 or 7-9G-2 NMSA 1978 or a deduction 
Border State Certiicate
                                                                    under Section 7-9-54.3 NMSA 1978.
New Mexico sellers may accept the Border State Certiicate (BSC) 
from out-of-state buyers from Arizona, California, Oklahoma,        Agricultural Deductions
Texas, Utah  and the United States of Mexico not required to 
                                                                    1. Receipts  from  selling  feed  for  livestock  (including  the 
register in New Mexico who: 
                                                                    bailing wire or twine used to contain the feed), ish raised for 
                                                                    human consumption, poultry or for animals raised for their hides 
1) wish to buy goods for resale or incorporation as ingredients 
                                                                    or pelts, seeds, roots, bulbs, plants, soil conditioners, fertilizers, 
or components of a manufactured product, or 
                                                                    insecticides, germicides, insects used to control populations of 
2) wish to buy a manufacturing service that will be performed 
                                                                    other insects, fungicides or weedicides or water for irrigation 
on a manufactured product or ingredient or component part 
                                                                    to persons engaged in the business of farming or ranching and 
thereof, and
                                                                    receipts of auctioneers from selling livestock or other agricultural 
3) will transport the tangible personal property across state or 
                                                                    products at auction (7-9-58).
national boundaries.                                                Ê
                                                                       Requirement: farmer or rancher statement (not required for 
Ê  NOTE: BSCs are not issued by New Mexico.
                                                                    auctioneers).
                                                                    Ê  NOTE: includes feed for all horses.

                                                                   7

- 27 -

2. Receipts from warehousing grain or other agricultural prod- within twenty miles of a port of entry on New Mexico’s border
ucts and receipts from threshing, cleaning, growing, cultivating with Mexico that are received within a ive-year period beginning
or harvesting agricultural products including the ginning of cot- on the date the trade-support company locates in New Mexico
ton, testing and transporting milk for the producer or nonproit (7-9-56.3).
marketing association from the farm to a milk processing or dairy Ê Requirement: trade-support company must locate to New
product manufacturing plant or processing for growers, producers Mexico after July 1, 2003, but before July 1, 2013.
or nonproit marketing associations of other agricultural products Ê Requirement: the receipts must be received by the trade-
raised for food and iber, including livestock (7-9-59). support company within a ive-year period beginning on the date
the company locates in New Mexico and they must be derived
3. 50% of receipts from selling agricultural implements, farm from its business activities and operations at its border-zone
tractors, or vehicles not required to be registered under the Mo- location.
tor Vehicle Code. The 50% deduction for receipts from sales of Ê Requirement: the trade-support company must employ at
agricultural implements may be taken only on sales to persons least two employees in New Mexico.
engaged in the business of farming or ranching. An "agricultural
implement" is deined as a tool, utensil or instrument that is Boxing, Wrestling and Martial Arts
subject to depreciation for federal income tax purposes and that
is: Receipts from producing or staging professional boxing, wrestling
a) designed to irrigate agricultural crops above ground or or martial arts contests that occur in New Mexico (7-9-107).
below ground at the place where the crop is grown, or
b) designed primarily for use with a source of motive power Commission Deductions
to produce agricultural products, including poultry, livestock and
1. Receipts from commissions on sales of tangible personal
food or iber from poultry or livestock (7-9-62).
property when the property sold is not subject to gross receipts
4. Receipts from sales of veterinary medical services, medicine tax and commissions of the owner of a dealer store for selling a
or medical supplies used in the medical treatment of cattle if the principal's goods (7-9-66).
sale is made to one of the following: Ê NOTE: includes sales that are either exempt or deductible.
a) a person who is regularly engaged in the business of Ê Exception: commissions on sales or leases of real property
ranching or farming, including dairy farmers, or or intangible property (i.e., stocks, bonds, licenses, tickets, or
b) a veterinarian who holds a valid license pursuant to the the lease of tangible property) are taxable.
Veterinary Practice Act and who is providing veterinary medical
services, medicine or medical supplies in the treatment of cattle 2. Receipt of real estate commissions from the sale of real
owned by a person engaged in the ranching or farming business property which is subject to the gross receipts tax (i.e., new
(7-9-109). construction) (7-9-66.1).
Ê Requirement: farmer or rancher statement. Ê Exception: commissions associated with the sale of land,
since those receipts are not subject to the gross receipts tax, may
Aircraft Deductions not be deducted.
1. 50% of the receipts from selling aircraft (7-9-62).
Ê Requirement: trade-in deduction (7-9-71) must be taken 3. Travel agents’ commissions paid by maritime transportation
companies, and interstate airlines, railroads and passenger buses
before calculating this deduction.
for booking, referral, reservation or ticket services (7-9-76).
2. Receipts of an aircraft manufacturer from selling:
a) aircraft or aircraft parts; 4. Receipts of lottery ticket retailers from commissions received
b) services performed on aircraft or aircraft components, on lottery ticket sales (7-9-87).
and
c) aircraft light support, pilot training or maintenance Construction Deductions
training services (7-9-62).
Ê Requirement: trade-in deduction (7-9-71) must be taken 1. Receipts from the sale of tangible personal property to a
before calculating this deduction. person in the construction business (7-9-51).
Ê Requirement: the tangible personal property by design and
3. Receipts from maintaining, refurbishing, remodeling or oth- intent must become part of a construction project (so that while
erwise modifying a commercial or military carrier over 10,000 receipts from the sale of nails are deductible, those from selling
gross landing weight (7-9-62.1). a hammer are not).
Ê Requirement: upon its completion the construction project
4. From July 1, 2003, through June 30, 2012, 55% of the receipts must be subject to the gross receipts tax.
from selling jet fuel for use in turboprop or jet engines. After Ê NOTE: Construction materials sold to a contractor for use in
June 30, 2012, 40% of the receipts from selling jet fuel for use a construction project on the tribal territory of an Indian nation,
in turboprop or jet engines (7-9-83). tribe or pueblo are deductible.
Border Trade-Support Deduction Ê NOTE: A contractor who is an accrual-basis taxpayer must
pay the gross receipts tax on progress payments as they are
Receipts of a trade-support company located in New Mexico
8

- 28 -

received. Ê Requirement: Type 9 NTTC or other proof.
Ê Requirement: Type 6 NTTC.
2. Receipts from selling tangible personal property to state-
2. Receipts from the sale of subcontracting services to a person chartered credit unions (7-9-61.2).
in the construction business (7-9-52). Ê Requirement: Type 9 NTTC or other proof.
Ê Exception: indirect services, such as accounting, architec- Ê NOTE: this deduction can also be taken from governmental
tural, engineering, drafting, bid depository services and plan gross receipts tax.
room services are not construction services.
Ê Requirement: upon its completion the construction project Electrical Transmission and Storage Facility Deductions
must be subject to the gross receipts tax. 1. Receipts from selling equipment to the New Mexico Renew-
Ê NOTE: Construction services sold to a contractor for use in able Energy Transmission Authority or an agent or lessee of the
a construction project on the tribal territory of an Indian nation, authority (7-9-101).
tribe or pueblo are deductible. Ê Requirement: the equipment must be installed as part of
Ê Requirement: Type 6 NTTC. an electric transmission facility or an interconnected storage
facility.
3. Receipts from sales of engineering, architectural and con-
struction services to a foundation or nonproit organization for 2. Receipts from providing services to the New Mexico Renew-
use in the new facility construction of a sole community provider able Energy Transmission Authority or an agent or lessee of the
hospital located in a federally designated health professional authority. Qualiied services include: planning, installation, repair,
shortage area (7-9-99). maintenance or operation of an electric transmission facility or
Ê Requirement: The deduction may only be taken if the founda- an interconnected storage facility (7-9-103).
tion or nonproit organization has made a written agreement with
a county to pay at least 95 percent of the new facility construction Film Lease Deduction
costs and executes an appropriate nontaxable transaction certiicate
(Type 5 NTTC for engineering and architectural services and a Receipts from leasing theatrical and television ilms and tapes
Type 6 for construction services) or delivers evidence that such to movie theaters or similar facilities when the theater's receipts
a written agreement has been made. are subject to gross receipts tax (7-9-76.2).

4. Receipts from sales of construction equipment or construc- Filmmaker Deduction (Sale to)
tion materials to a foundation or nonproit organization for use
in the new facility construction of a sole community provider Receipts from selling or leasing property and from performing
hospital located in a federally designated health professional services that qualify as production costs of qualiied production
shortage area (7-9-100). companies (7-9-86).
Ê Requirement: The deduction may only be taken if the foun- Ê Requirement: buyer must submit proof of registration as a
dation or nonproit organization has made a written agreement qualiied production company with the New Mexico ilm division
with a county to pay at least 95 percent of the construction costs of the economic development department.
and executes an appropriate nontaxable transaction certiicate Ê Requirement: Type 16 NTTC.
(Type 2 NTTC for construction equipment and a Type 6 NTTC Ê NOTE: This deduction is not available to ilm production
for the construction materials) or delivers evidence that such a companies taking the ilm production tax credit. For more in-
written agreement has been made. formation on the ilm production tax credit, request publication
FYI-106 from your local district ofice or from our website:
5. Receipts from military construction services provided at New www.tax.state.nm.us/.
Mexico military installations to implement Special Operations
Mission Transitions Projects pursuant to contracts entered into Food Deduction
with the U.S. Department of Defense (7-9-106).
Ê Requirement: the military installation must be located in Receipts from qualifying food sales at retail food stores as deined
Curry County. under the federal food stamp program (7-9-92).
Ê Requirement: this deduction would apply to reporting periods Ê Exception: sales of alcoholic beverages, tobacco and prepared
from July 1, 2007, through December 31, 2010. hot foods for immediate consumption are not deductible.
Ê NOTE: special reporting is required for this deduction, see
6. Receipts from the sale of construction materials to a 501(c) instructions for completing the CRS-1 Form in this kit.
(3) organization organized for the purpose of providing hom-
eownership opportunities to low-income families (7-9-60). Governmental Entity Deduction (Sale to)
Ê Requirement: Type 9 NTTC.
1. Receipts from selling tangible personal property to a U.S. or
Credit Union Deduction (Sale to) New Mexico governmental entity or the governing body of an
Indian nation, tribe or pueblo for use on an Indian reservation
1. Receipts from selling tangible personal property to federally or pueblo grant (7-9-54).
chartered credit unions. Ê Exception: does not include materials sold to a U.S. or

- 29 -

New Mexico governmental entity that will be incorporated into Ê Exception: this deduction does not apply to receipts from
a construction project. sales of the following items:
Ê NOTE: When a seller in good faith deducts receipts from Special clothing or footwear worn for athletic activities
the sale of construction material to a government after receiving or protective use, or
written assurances from the government that the property will not Accessories, including jewelry, handbags, luggage,
be used in a construction project, the department is barred from umbrellas, wallets and watches.
assessing the seller gross receipts tax on those receipts. However, Ê NOTE: a separate form reporting receipts speciic to this
the department may assess the buyer for compensating tax if the deduction, RPD-41299, will be required along with the CRS-1
materials are subsequently used in a construction project. Form. RPD-41299 is available at your local district tax ofice or
Ê Exception: does not include leasing of property or licenses online: www.tax.state.nm.us/.
or the performance of services.
Ê Exception: not applicable to other states' governmental enti- Internet Deductions
ties (i.e., Texas, Colorado, Arizona, etc.).
Ê Requirement: either a Type 9 NTTC or proof that payment 1. Receipts from the sale of a service or property through the
was from a U.S. or New Mexico governmental entity or the Internet to a person with a billing address outside New Mexico
governing body of an Indian nation, tribe or pueblo. (7-9-57.1).
Ê NOTE: includes receipts from selling tangible personal
property to the American National Red Cross. 2. Receipts from hosting web sites (7-9-56.2).
Ê NOTE: this deduction can also be taken from governmental
gross receipts tax. 3. Receipts from providing telecommunications, Internet or
Internet access services to Internet Service Providers (ISPs) (7-
2. Receipts from selling or leasing property to, or from per- 9-56.1).
forming services for accredited foreign missions or diplomats Ê NOTE: receipts of ISPs from providing access or other ser-
(7-9-89). vices (except hosting) to ultimate users are not deductible.
Ê Requirement: Type 16 NTTC.
Interstate Commerce Deductions
3. Receipts from selling wind generation equipment or solar gen-
eration equipment to a government for the purpose of installing 1. Receipts from transactions in interstate commerce and from
a wind or solar electric generation facility (7-9-54.3). sales of radio or television broadcast time if the ultimate buyer
Ê Exception: this deduction shall not be claimed for receipts is a national or regional advertiser (7-9-55).
from an expenditure for which a taxpayer claims a credit pursuant Ê NOTE: retail sales to out-of-state buyers who place orders
to Sections 7-2-18.25, 7-2A-25 or 7-9G-2 NMSA 1978. from out of state, accept delivery out of state, and title and risk
of loss pass to buyer out of state are deductible.
4. Receipts from the sale of property or services purchased by, Ê Exception: commissions of advertising agencies are not
or on behalf of, the state of New Mexico (7-9-97). deductible.
Ê Requirement: the purchases must be made with funds ob- Ê NOTE: this deduction can also be taken from governmental
tained from the forfeiture of inancial assurance pursuant to the gross receipts tax.
New Mexico mining Act or the Water Quality Act.
2. Receipts from intrastate transporting of persons or property
Gross Receipts Tax Holiday Deduction if under a single contract for transportation in interstate or foreign
commerce (including handling, storage, drayage or packing)
Receipts from retail sales of speciied tangible personal property (7-9-56).
if the sale of the property occurs during the period between 12:01
a.m. on the irst Friday in August and ending at midnight the 3. Receipts from leasing vehicles used by persons required to
following Sunday (7-9-95). have federal authority to transport passengers or property for
Ê Requirement: this deduction applies only to receipts from hire in interstate commerce (7-9-70).
sales of the following items: Ê NOTE: this deduction is available to the lessor, not the
Clothing or shoes sold for less than $100; lessee.
Desktop, laptop or notebook computers sold for no
more than $1,000 and any associated monitor, speaker or set of Leasing Deductions
speakers, printer, keyboard, microphone or mouse sold for no
more than $500; 1. Receipts from the sale of tangible personal property or
School supplies normally used by students in a stan- licenses for leasing (7-9-49).
dard classroom for educational purposes, including notebooks, Ê Exception: receipts from the sale of coin-operated machines,
paper, writing instruments, crayons, art supplies, rulers, book manufactured homes or furniture and appliances used in an apart-
bags, backpacks, handheld calculators, maps and globes, but not ment, manufactured home or other leased or rented dwelling unit
including watches, radios, compact disc players, headphones, are not deductible.
sporting equipment, portable or desktop telephones, copiers, Ê Requirement: Type 2 NTTC.
ofice equipment, furniture or ixtures.

- 30 -

2. Receipts from leasing tangible personal property or licenses equipment provider (7-9-73.2).
for subsequent lease (7-9-50). Ê NOTE: this deduction can also be taken from governmental
Ê Exception: receipts from leasing coin-operated machines, gross receipts tax.
manufactured homes or furniture and appliances used in an apart-
2. Receipts from selling prosthetic devices to persons licensed
ment, manufactured home or other leased or rented dwelling unit
to practice medicine, osteopathy, dentistry, podiatry, optometry,
are not deductible.
Ê Requirement: Type 2 NTTC. chiropractic or professional nursing (7-9-73).
Ê NOTE: includes contact lenses, eyeglasses (frame and lens
glass) sold to ophthalmologists and optometrists.
Loan Charges Deduction
Ê Exception: does not include property used in making dentures
and supplies such as silver, orthodontia wire, facings and similar
Receipts from charges made in connection with the origination,
items sold to dentists.
making or assumption of a loan or from charges made for handling
Ê Requirement: Type 2 NTTC.
loan payments (7-9-61.1).
Ê Exception: the receipts of an escrow agent are not deductible Ê NOTE: this deduction can also be taken from governmental
gross receipts tax.
from gross receipts.
3. 50% of receipts of hospitals may be deducted (7-9-73.1).
Lottery Retailer Deduction
Ê Requirement: this deduction may be taken only after all
other available deductions.
Receipts of a lottery game retailer from selling New Mexico
lottery tickets (7-9-87). 4. Receipts from Medicare received by:
1) medical doctors, osteopathic physicians, doctors of orien-
Manufactured Home Resale Deduction tal medicine, athletic trainers, chiropractic physicians, counselor
and therapist practitioners, dentists, massage therapists, napra-
Receipts from the resale of a manufactured home which was paths, nurses, nutritionists, dietitians, occupational therapists,
subject to gross receipts, compensating or motor vehicle excise optometrists, pharmacists, physical therapists, psychologists,
tax on its original sale or use in New Mexico (7-9-76.1). radiologic technologists, respiratory care practitioners, audiolo-
Ê Requirement: proof of payment of one of the above-men- gists, speech-language pathologists, social workers and podiatrists
tioned taxes. for providing medical and other health and pain-relieving services
to Medicare beneiciaries;
Manufacturing Deductions 2) a hospice for providing medical, other health and pain-
relieving services to Medicare beneiciaries;
1. Receipts from selling tangible personal property to persons 3) a clinical laboratory for medical services to Medicare
in the manufacturing business (7-9-46). beneiciaries;
Ê Requirement: tangible personal property must become an 4) a home health agency for medical, other health and pain
ingredient or component part of the manufactured product. relieving services to Medicare beneiciaries;
Ê Requirement: person must own the product to be considered 5) a nursing home for medical, other health and palliative
a manufacturer. services (7-9-77.1).
Ê Requirement: Type 2 NTTC, NTTC-OSB, MTC or BSC.
Ê NOTE: this deduction can also be taken from governmental 5. Receipts of medical doctors and osteopathic physicians
gross receipts tax. from payments by a third-party administrator of the federal
TRICARE program (7-9-77.1).
2. Receipts from selling the service of combining or processing Ê Requirement: receipts must be from providing medical and
materials to a manufacturer (7-9-75). other health services.
Ê Requirement: service must be performed directly on the
6. Receipts of licensed health care practitioners from payments
product being manufactured.
by managed health care providers or health care insurers for com-
Ê Requirement: Type 5 NTTC, NTTC-OSB, MTC or BSC.
mercial contract services or Medicare Part C services provided
by a health care practitioner (7-9-93).
3. Receipts from selling tangible personal property to be used Ê
Exception: receipts from fee-for-service payments, co-pay-
in the manufacture of jewelry (7-9-74).
ments or any other payments by the patient are not deductible.
Ê Requirement: deduction may not exceed $5000 per purchaser
Ê Exception: receipts already exempt or deductible under
during a twelve-month period.
another provision of the Gross Receipts and Compensating Act
Ê Requirement: jewelry manufacturer statement; if sales exceed
are not deductible under this section.
$5,000 in twelve-month period, a Type 2 NTTC, NTTC-OSB, Ê
NOTE: special reporting is required for this deduction. Please
MTC or BSC is needed.
see instructions for completing the CRS-1 Form in this kit.
Medical Deductions 7. Receipts of a medical doctor or osteopathic physician from
payments by or on behalf of the Indian Health Service of the U.S.
1. Receipts from the sale of prescription drugs, oxygen and
Department of Health and Human Services for the provision of
oxygen services provided by a licensed Medicare durable medical
medical and other health services to covered beneiciaries

- 31 -

(7-9-77.1). Out-of-State Buyer Deduction (Sale to)
8. Receipts from selling vision aids, hearing aids or related
Receipts from the sale of tangible personal property either for
services (7-9-111).
resale or for use as an ingredient or component part of a manu-
Ê Exception: receipts already exempt or deductible under
factured product or from purchasing a manufacturing service
another provision of the Gross Receipts and Compensating Tax
that will be performed directly upon tangible personal property
Act are not deductible under this section.
to a customer located outside of New Mexico.
Mining, Milling or Oil Company Deductions Ê Requirement: buyer must provide proof the buyer is in the
business of reselling the property purchased or manufacturing a
Receipts from selling chemicals or reagents to any mining, mill- product containing the property or service purchased.
ing or oil company for use in processing ores or oil in a mill, Ê Requirement: buyer is not required to be registered in New
smelter or reinery or in acidizing oil wells, and receipts from Mexico.
selling chemicals or reagents in lots in excess of eighteen tons Ê Requirement: buyer must be registered to pay sales, gross
(7-9-65). receipts or a similar type tax with the taxing authority in the
Ê Exception: receipts from selling explosives, blasting powder buyer's business location.
or dynamite are not deductible. Ê Requirement: Type NTTC-OSB, BSC or MTC.

Nonathletic Special Event Deduction Property Resale Deduction

Receipts from admissions to nonathletic special events held at a Receipts from sales of tangible personal property or licenses
venue that is located on the campus of a post-secondary school for resale (7-9-47).
within 50 miles of the New Mexico border that holds at least Ê Requirement: Type 2 NTTC, NTTC-OSB, MTC or BSC.
10,000 people (7-9-104). Ê NOTE: this deduction can also be taken from governmental
Ê Requirement: to be eligible, receipts must be received be- gross receipts tax.
tween July 1, 2007, and June 30, 2012. Ê NOTE: Type NTTC-OSB or BSC for sales of tangible
personal property only to buyers not required to be registered
Nonproit Organization Deduction (Sale to) in New Mexico.
Ê NOTE: includes receipts from selling tangible personal
1. Receipts from selling tangible personal property to 501(c) property to a qualiied federal contractor or subcontractor who
(3) organizations for use in their exempt functions (7-9-60). has entered into a service contract with one of the U.S. agencies
Ê Exception: materials included as part of a construction that signed a special agreement between New Mexico and the
project and construction services provided by a construction U.S. government. If criteria listed in the agreement are met, the
contractor are not deductible unless the organization is providing federal contractor or subcontractor may execute Type 15 NTTCs
homeownership opportunities to low-income families (Subsec- with its vendors.
tion B of Section 7-9-60).
Ê Exception: leasing of tangible personal property or licenses Publisher’s Deductions
or performance of construction or other services is not deduct-
ible. 1. Receipts from publishing newspapers or magazines
Ê Requirement: Type 9 NTTC. (7-9-63).
Ê NOTE: this deduction can also be taken from governmental Ê Exception: receipts from selling advertising space are not
gross receipts tax. deductible.
Ê Exception: receipts from selling magazines at retail are not
2. Receipts from selling construction materials and metallifer- deductible.
ous mineral ore to 501(c)(3) organizations (7-9-60).
Ê Requirement: the 501(c)(3) organization must be organized 2. Receipts from selling newspapers (7-9-64).
for the purpose of providing homeownership opportunities to Ê Exception: receipts from selling advertising space are not
low-income families. deductible.
Ê Requirement: Type 9 NTTC.
Real Estate Deductions
Nonproit Organization Deduction (Sale By)
1. Receipts from the sale or lease of real property, which in-
Organizations exempt from federal income tax under Section cludes the land and anything permanently afixed thereto, from
501(c) of the Internal Revenue Code may deduct the receipts the lease of a manufactured home for at least one month and
from two fund-raising events each calendar year (7-9-85). from the rental of space for a manufactured home or recreational
Ê Exception: this deduction is not available to 501(c)(3) vehicle for at least one month (7-9-53).
organizations. Ê NOTE: receipts attributable to the inclusion of furniture or
appliances as part of the lease of a dwelling are deductible.
Ê Exception: receipts from the rental of manufactured homes,
or spaces for recreational vehicles or manufactured homes for

- 32 -

periods of less than a month are not deductible. 3. Receipts of a business entity from an afiliate for performing
Ê Exception: receipts from the rental of rooms in hotels, motels, administrative, managerial, accounting and customer services or
rooming houses, campgrounds, and guest ranches regardless of sharing ofice machines and facilities (7-9-69).
the rental time period are not deductible. Ê Requirement: must be on a nonproit or cost basis.
Ê Exception: this deduction does not apply to improvements Ê NOTE: an afiliate is a business entity that directly or indi-
constructed on the land by a construction contractor. rectly through one or more intermediaries controls is controlled
by or is under common control with another business entity.
2. Receipt of real estate commissions from the sale of real
estate which is subject to the gross receipts tax (i.e., new 4. Receipts from the sale to a 501(c)(3) organization (other
construction) (7-9-66.1). than a national lab) or the United States, of aerospace services
Ê Requirement: the person claiming the deduction must submit (7-9-54.1).
to the department evidence to substantiate the deduction. Ê Requirement: Type 5 NTTC.
Ê Exception: commissions associated with the sale of land are
not deductible since receipts from the sale of land are not subject 5. Receipts from operating a spaceport; launching, operating
to the gross receipts tax. or recovering space vehicles or payloads; preparing a payload;
Ê NOTE: the tax rate for real estate commissions is the rate or research, development, testing and evaluation services for the
for the location of the property being sold. U.S. Air Force Operationally Responsive Space Program
(7-9-54.2).
Refund and Allowance Deduction
6. Receipts from the sale of software development services
Refunds and allowances made to buyers and amounts written that are performed in a qualiied area by an eligible software
off the books as uncollectible debts by accrual-basis taxpayers company (7-9-57.2).
(7-9-67). Ê Requirement: only a taxpayer who is not a successor in
Ê Requirement: deduction must be taken in month refund or business of another taxpayer and whose primary business in
allowance is given. New Mexico is established after July 1, 2002, is eligible for this
Ê Requirement: deduction cannot exceed gross receipts for a deduction.
given report period. Excess may be carried forward. Ê Requirement: the software development services must be
Ê Requirement: the gross receipts tax must have been paid on performed outside the municipal boundaries of Albuquerque,
the initial transaction. Las Cruces, Santa Fe and Rio Rancho.
Ê Requirement: only accrual-basis taxpayers may deduct Ê Exception: does not include software implementation or
amounts written off the books as uncollectible debts, i.e., sales support services.
previously reported as taxable receipts for which payment has
not been received. 7. Receipts from military transformational acquisition programs
Ê Example: when you register with the department ,we ask you performing research and development, test and evaluation services
to choose your accounting method based on how you post your at New Mexico major range and test facility bases (7-9-94).
receipts into your books. If you post charge sales as receipts when Ê NOTE: this deduction is only available through June 30,
you actually receive payment, you use the cash-basis accounting 2016.
method; if you post charge sales as receipts when you bill them, Ê Exception: this deduction does not apply to receipts of a
you use the accrual-basis accounting method. prime contractor operating facilities designated as a national
Ê NOTE: this deduction can also be taken from governmental laboratory by act of congress or to current force programs as of
gross receipts tax. July 1, 2005.

Service Provider Deductions 8. Receipts from fees received for performing management or
investment advisory services for a mutual fund, hedge fund or
1. Receipts from the sale of services for resale (7-9-48). real estate investment trust (7-9-108).
Ê Requirement: subsequent sale must be subject to the gross
receipts tax or governmental gross receipts tax. Solar Energy Systems Deduction
Ê Requirement: seller must be in the business of selling the
same or a similar service to that being purchased. Receipts from the sale or installation of solar energy systems
Ê Requirement: Type 5 NTTC. (7-9-112).
Ê Requirement: A person claiming this deduction must be
2. Receipts from the sale of a service to an out-of-state able to provide evidence or a written statement from the buyer
buyer (7-9-57). that the equipment or installation services being purchased are
Ê Requirement: the out-of-state buyer must accept delivery for the exclusive use in the installation and operation of a solar
and make initial use of the product of the service outside New energy system.
Mexico.
Ê Requirement: Type 5 NTTC or other evidence to support Special Fuel Deduction
deduction.
Receipts from the sale of special fuel consisting of at least ninety-

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nine percent vegetable oil or animal fat (7-9-113).                  had the property been acquired from a person with nexus with 
Ê  Requirement: the special fuel exise tax deduction under           New Mexico (7-9-7).
7-16A-10 must be claimed.                                            Ê  Example:  A New Mexico business purchases for its own 
Ê  NOTE: this deduction is only available through June 30, 2014.     use computer loppy disks and printer ribbons from a mail order 
                                                                     irm in New Jersey that delivers the order by common carrier to 
Telecommunications Deduction                                         the buyer's New Mexico business location. The buyer must pay 
                                                                     compensating tax on the value of these products, plus any freight, 
Receipts from telephone access charges paid by other telephone       delivery and handling charges billed by the seller.
carriers (7-9-56).
Ê  NOTE:  receipts of telephone companies from providing             3.    Property that was acquired in a nontaxable transaction but 
interstate and foreign telecommunication services are exempt         subsequently was converted to use by the person instead of being 
from gross receipts tax but subject to the interstate telecommu-     used in a nontaxable manner (7-9-7).
nications gross receipts tax.  Hotels and motels are not telephone   Ê  Example: A grocer has issued an NTTC to a baker for the 
companies and therefore are subject to gross receipts tax.           purchase of bread for resale. The grocer is liable for compensating 
                                                                     tax on the value of the loaf of bread because it was converted to 
Trade-In Deduction                                                   use by the grocer instead of being resold.
                                                                     Ê  Example: A boot manufacturer has issued NTTCs to vari-
Receipts from a trade-in of tangible personal property 
                                                                     ous vendors of items such as leather that he uses to make boots. 
(7-9-71).
                                                                     The maunfacturer gives one of the pairs of boots to his daughter. 
Ê  Requirement: property traded in must be the same type as 
                                                                     The manufacturer converted the boots to his own use insted of 
that being sold.
                                                                     selling them. The manufacturer is liable for compensating tax on 
Ê  Exception: does not include manufactured homes.
                                                                     the value of the boots that he gave to his daughter.
                                                                     Ê  NOTE:  Although the compensating tax is still due on trans-
Uranium Enrichment Plant Deduction
                                                                     actions described above, if the buyer is an individual and the 
                                                                     item purchased is for personal use, the Department will not take 
Receipts from selling enriched uranium or from enriching ura-
                                                                     action against the individual to collect the tax unless the item is a 
nium (7-9-90).
                                                                     manufactured home (7-9-7.1). The Department will continue to 
                                                                     take action when the tax is due on purchases by businesses and 
Warranty Fulillment Deduction
                                                                     government agencies (when applicable) and when businesses 
                                                                     have a duty to collect and remit the tax.  
Receipts of a dealer from furnishing goods or services to fulill 
a manufacturer’s warranty obligation (7-9-68).
                                                                         Compensating Tax Is Levied on Services
Ê  Exception: receipts of warranty subcontractors may not be 
deducted since they are not dealers.
                                                                     Services that were acquired in a nontaxable transaction but subse-
                                                                     quently were converted to use instead of being used in a nontaxable 
                  COMPENSATING TAX
                                                                     manner are subject to the compensating tax (7-9-7).
                                                                     Ê  Example:  A contractor issues NTTCs to subcontractors for 
                What Is Compensating Tax?
                                                                     the purchase of construction services which he uses to build a 
                                                                     house.  Instead of selling the completed house, the contractor 
Compensating tax is an excise tax imposed on persons using prop-
                                                                     moves into it.  Because the contractor has converted the house 
erty or services in New Mexico as described below (7-9-7).
                                                                     to his own use, he is liable for compensating tax on the value of 
                                                                     the construction services he purchased with NTTCs.
Compensating tax is designed to protect New Mexico businesses 
from unfair competition from out-of-state businesses not subject 
                                                                         What Is the Compensating Tax Rate?
to gross receipts tax.
                                                                     The compensating tax is imposed at a rate of 5.125%  on the value 
“Use” means use, consumption or storage other than storage for 
                                                                     of the property  at the time of acquisition or introduction into New 
subsequent sale in the ordinary course of business or storage for 
                                                                     Mexico or at the time of conversion to use, whichever is later.
use solely outside New Mexico [7-9-3(N)].
                                                                     Compensating tax at a rate of 5% is imposed on the value of 
         Compensating Tax Is Levied on Property
                                                                     services at the time the services are rendered.
The following property is subject to compensating tax:
                                                                     The value of tangible personal property is the adjusted basis of 
                                                                     the property for federal income tax purposes determined as of the 
1. Property that was manufactured by the person using the 
                                                                     time of acquisition or introduction into this state or of conversion 
property in New Mexico (7-9-7).
                                                                     to use, whichever is later. If no adjusted basis for federal income 
                                                                     tax purposes is established for the property, a reasonable value of 
2. Property that was acquired from a person located outside 
                                                                     the property shall be used (7-9-7).  The value of services is the 
New Mexico that would have been subject to gross receipts tax 
                                                                     total amount of money or other consideration paid for the service 

                                                                   14

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unless the reasonable value is greater than the actual amount paid, political subdivisions (7-9-14).
in which case value would be the reasonable value (7-9-8). Ê Exception: the use of property by a New Mexico political
subdivision that is or will be incorporated into a metropolitan
Who Has the Liability for Compensating Tax? redevelopment project created under the Metropolitan Redevel-
opment Code is not exempt.
1. Buyer or User - Unlike gross receipts tax, liability for com- Ê Exception: the use of construction materials -- tangible per-
pensating tax rests with the buyer or user rather than the seller. sonal property that becomes or is intended to become an ingredient
The buyer has met the tax obligation, however, if the buyer paid or component part of a construction project -- is not exempt.
compensating tax to a seller who is an agent for the collection
of compensating tax. The compensating tax must be separately 2. The use of property on Indian reservations or pueblo grants
stated on the invoice to verify payment (7-9-9). by the governing body, agency or subdivision of an Indian nation,
tribe or pueblo (7-9-14).
2. Agent for the Collection of Compensating Tax - Persons
selling property or property and service for use in New Mexico 3. The use of property by any instrumentality of the United
who are not liable for gross receipts tax on the sales may be States Armed Forces engaged in resale activities (7-9-31).
liable to collect compensating tax for the state if the person is
carrying on or causing to be carried on any business activity in Nonproit Organization Exemptions
New Mexico (7-9-10).
The use of property by organizations that have been granted tax
Exemptions From Compensating Tax exemption under Section 501(c)(3) of the Internal Revenue Code
as long as the property is used in the conduct of their exempt
Transactions exempt from compensating tax do not have to be functions (7-9-15).
reported on the CRS-1 Form. Ê Exception: property used in an unrelated trade or business as
deined in Section 513 of the Internal Revenue Code and property
Electricity Exemption used as an ingredient or component part of a construction project
are not exempt.
The use of electricity in the production and transmission of
electricity (7-9-38). Personal and Household Effects Exemption

Fuel Exemptions The use by an individual of personal or household effects brought
into New Mexico at the time the individual establishes an initial
1. The use of gasoline, special fuel or alternative fuel on which residence in this state (7-9-27).
the gasoline tax (7-13-3), special fuel excise tax (7-16A-3) or Ê NOTE: includes the nonbusiness use of property in New
alternative fuel excise tax (7-16B-4) has been paid and not re- Mexico by a nonresident while temporarily in this state.
funded (7-9-26).
Railroad, Aircraft and Space Vehicle Exemptions
2. The use of oil, natural gas, liquid hydrocarbons or any com-
bination of these as fuel consumed in the pipeline transportation 1. The use of railroad locomotives, trailers, containers, tenders
of any of these products (7-9-37). or cars procured or bought for use in railroad transportation
(7-9-30).
3. The use of fuel, oxidizer or a substance that combines fuel
and oxidizer to propel space vehicles or to operate space vehicle 2. The use of commercial aircraft bought or leased primarily
launchers (7-9-26.1). for use in the transportation of passengers or property for hire
in interstate commerce (7-9-30).
4. The use of fuel to be loaded or used by a common carrier in
a locomotive engine (7-9-41.2). 3. The use of space vehicles for transportation of persons or
Ê NOTE: This exemption was to become effective July 1, property in, to or from space (7-9-30).
2010, if the Economic Development Department would have
certiied to the Taxation and Revenue Department by January Vehicles and Boats Exemptions
1, 2010, that construction of a railroad locomotive refueling
facility project had commenced. Such a certiication from the 1. The use of vehicles on which the motor vehicle excise tax
Economic Development Department was never received by the has been paid and the use of vehicles exempt from the motor
Taxation and Revenue Department; as a result this exemption is vehicle excise tax pursuant to Section 7-14-6 NMSA 1978
not currently available. (7-9-23).

Governmental Entity Exemptions 2. The use of vehicles subject to registration with the Motor
Vehicle Division under Section 66-3-16 (special registration for
1. The use of property by the U.S. Government or one of its disabled persons) (7-9-23).
agencies or the state of New Mexico or one of its agencies or

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3. The  use  of  boats on which the boat excise tax (66-12- 6.1) 
has been paid (7-9-23.1).                                             Fuel Deduction

   Deductions From Compensating Tax                                   From July 1, 2003, through June 30, 2012, 55% of the receipts 
                                                                      from selling  jet fuel for use in turboprop or jet engines.  After 
Deductions  from  compensating  tax,  unlike  deductions  from        June 30, 2012, 40% of the receipts from selling for use in tur-
gross receipts tax, do not have to be reported on the CRS-1 Form      boprop or jet engines (7-9-84).
but records substantiating the deduction should be kept in the 
taxpayer's records.                                                   Government Deduction (Contribution to)

Advanced Energy Deduction                                             The value of tangible personal property that is removed from 
                                                                      inventory and contributed to a U.S. or New Mexico governmental 
The value of eligible generation plant costs from the sale of         entity or the governing body of an Indian nation, tribe or pueblo 
tangible personal property to a person that holds an interest in a    for use on an Indian reservation or pueblo grant may be deducted 
qualiied generating facility for which the Department of Envi-        in computing the compensating tax due (7-9-91).
ronment has issued a certiicate of eligibility.                       Ê  Exception:  contributions of tangible personal property that 
Ê  Requirement: a taxpayer claiming this deduction on form            will become an ingredient or component part of a construction 
RPD-41349 Advanced Energy Deduction.                                  project are not deductible.
Ê  NOTE: this deduction is only available for a ten-year period       Ê  Exception:    contributions  of  tangible  personal  property 
from the year development of the qualiied generating facility         utilized or produced in the performance of a service are not 
begins and expenditures are made.                                     deductible.
Ê  NOTE: this deduction cannot be claimed for the same quali-
ied expenses for which the taxpayer claims a credit under Sec-        Leasing Deduction
tions 7-2-18.25, 7-2A-25 or 7-9G-2 NMSA 1978 or a deduction 
under Section 7-9-54.3 NMSA 1978.                                     The value of tangible personal property held for leasing by a 
                                                                      person engaged in the business of selling or leasing the same 
Agricultural Implements, Aircraft, Vehicles Deduction                 type property may be deducted before computing compensating 
                                                                      tax due (7-9-78).
50% of the value of farm tractors, aircraft not exempted under        Ê  Requirement:  the person must be engaged in a business 
7-9-30 and vehicles not required to be registered under the Motor     which derives a substantial portion of its receipts from leasing 
Vehicle Code may be deducted from total value before comput-          or selling tangible personal property of the type leased.
ing compensating tax due. Also 50% of the value of agricultural       Ê  Requirement: the person cannot use the tangible personal 
implements may be taken by persons engaged in the business            property in any manner other than holding it for lease or sale.
of farming or ranching. An "agricultural implement" is deined         Ê  Requirement: the person cannot use the tangible personal 
to be a tool, utensil or instrument that is subject to depreciation   property in a manner incidental to the performance of a ser-
for federal income tax purposes and designed primarily for use        vice.
with a source of motive power to produce agricultural products,       Ê  Exception:  the value of furniture or appliances furnished as 
including poultry, livestock and food or iber from poultry or         part of a leased or rented dwelling by the lessor, coin-operated 
livestock (7-9-77).                                                   machines and manufactured homes may not be deducted.
Ê  Requirement: any trade-in deduction (7-9-71) must be taken 
before taking this 50% deduction.                                     Nonproit Organization Deduction (Contribution to)

Biomass-Related Equipment Deduction                                   The value of tangible personal property that is removed from 
                                                                      inventory and contributed to 501(c)(3) organizations, may be 
1. The value of a biomass boiler, gasiier, furnace, turbine-          deducted in computing the compensating tax due (7-9-91).
generator, storage facility, feedstock processing or drying equip-    Ê  Exception:  contributions of tangible personal property that 
ment, feedstock trailer or interconnection transformer may be         will become an ingredient or component part of a construction 
deducted in computing the compensating tax due (7-9-98).              project are not deductible.
                                                                      Ê  Exception:    contributions  of  tangible  personal  property 
2. The value of biomass materials used for processing into            utilized or produced in the performance of a service are not 
biopower, biofuels or biobased products may be deducted in            deductible.
computing the compensating tax due (7-9-98).                          Ê  Requirement: the tangible personal property must be deduct-
                                                                      ible by contributor for federal income tax purposes.
Electric Transmission and Storage Facility Deduction
                                                                      Space-Related Test Article Deduction  
The value of equipment installed as part of an electric transmis-
sion facility or an interconnected storage facility acquired by the   1. The value of space-related test articles used in New Mexico 
New Mexico Renewable Energy Transmission Authority may be             exclusively for research or testing, placing on public display 
deducted in computing compensating tax due (7-9-102).                 after research or testing or storage for future research, testing or 

                                                                    16

- 36 -

public display, may be deduced in computing compensating tax may only be claimed by national laboratories operating in New
due (7-9-54.4). Mexico and is applied against gross receipts taxes due up to
Ê Exception: this deduction does not apply to any other use $2,400,000 excluding local option gross receipts taxes.
of space-related test articles.
4. The technology jobs tax credit: the basic credit may be ap-
2. The value of equipment and materials used in New Mexico plied against gross receipts, compensating or withholding tax;
for research or testing, or for supporting the research or testing the additional credit may be applied against personal or corporate
of space-related test articles or for storage of such equipment or income tax liability.
materials for research or testing, or supporting the research and
testing of space-related test articles may be deducted in comput- 5. Sales or use tax paid to another state may be applied against
ing compensating tax due (7-9-54). compensating tax liability.
Ê Exception: this deduction does not apply to any other use
of such equipment and materials. 6. The gross receipts tax credit is available when the product
Ê NOTE: a space-related test article is a material or device of a research and development service performed outside New
intended to be used primarily in research or testing to determine Mexico is initially used in New Mexico and the service has been
properties and qualities of material or properties, qualities or taxed through a gross receipts, sales or similar tax in another
functioning of a device or technology when the principal use of state.
the material, device or technology is intended to be in space or
as part of, or associated with, a space vehicle. 7. Compensating tax paid on construction projects may be
applied against gross receipts tax liability.
Test Article Deduction
8. The high-wage jobs tax credit may be claimed by eligible
The value of test articles upon which research or testing is con- employers against gross receipts, compensating, withholding tax
ducted in New Mexico pursuant to a contract with the United and other CRS taxes, except local option gross receipts taxes.
States department of defense may be deducted in computing the The excess is refundable to the taxpayer when the credit is more
compensating tax due (7-9-54.5). than the tax liability.
Ê NOTE: a test article is a material or device upon which
research or testing is conducted to determine the properties and 9. The sale of service for resale tax credit may be applied against
qualities of the material or the properties, qualities or functioning gross receipts tax or governmental gross receipts tax liability.
of the device or a technology used with the device.
Ê Exclusion: this deduction does not apply to the value of 10. The research and development small business tax credit
property purchased by a prime contractor operating a facility may be claimed by qualiied research and development small
designated as a national laboratory by an act of congress. businesses and is applied against gross receipts, compensating
or withholding tax liability.
Trade-In Allowance Deduction
11. The affordable housing tax credit may be applied against
The value of the allowance given to a buyer for a trade-in of the gross receipts, compensating, withholding, personal income or
same type tangible personal property being purchased may be corporate income tax liability through the sale or transfer of
deducted from the value of the property sold before computing vouchers issued by the Mortgage Finance Authority.
compensating tax due (7-9-77).
12. The hospital credit may be claimed by hospitals licensed by
Uranium Enrichment Plant Deduction the New Mexico Department of Health against gross receipts tax.
This credit is phased-in over a four-year period.
The value of equipment and replacement parts used to enrich
uranium in a uranium enrichment plant (7-9-78.1). 13. The biodiesel blending facility tax credit may be claimed
by a rack operator against gross receipts and compensating taxes
CRS TAX CREDITS
for 30 percent of the cost of purchasing or installing biodiesel
These 17 credits, explained in detail in the next section of this blending equipment.
publication, are available to CRS taxpayers:
14. A tax credit, phased-in over three years, for unpaid charges
1. The investment credit may be applied against the state gross for services provided in a hospital may be claimed by a licensed
receipts (excluding local option gross receipts taxes), compensat- medical doctor or licensed osteopathic physician against gross
ing or withholding tax liability. receipts taxes.

2. The rural jobs tax credit may be applied against taxes due 15. The advanced energy tax credit may be claimed by an
on the CRS-1 Form, excluding local option gross receipts taxes, interest owner for their expenditures for the development and
or against personal or corporate income tax liability. construction of a new solar thermal electric generating facility
or a new or re-powered coal-based electric generating unit and
3. The laboratory partnership with small business tax credit an associated coal gasiication facility.

- 37 -

16. The alternative energy products manufacturing tax credit may for a qualifying job in a “tier one” area and 12.5% of the irst
be claimed against gross receipts, compensating, withholding tax $16,000 in a “tier two” area. If the job is located in a “tier one”
and other CRS taxes, except local option gross receipts taxes. area, the employer may receive a credit for four consecutive years;
The escess credit may be carried forward for up to ive years. if it is in a “tier two” area, the employer may take the credit for
two consecutive years. A credit once earned is transferable.
17. A credit for penalties paid pursuant to Section 7-1-71.2
NMSA 1978 may be claimed by taxpayers and applied against Laboratory Partnership Credit
gross receipts, compensating or withholding tax liabilities.
When a national laboratory offers certain types of eligible assis-
Investment Credit tance to individual small businesses (“small business” as deined
in the federal Small Business Act, P.L. 85-536) in New Mexico
New Mexico has an Investment Credit Act (7-9A-1) to augment its and incurs expenses for doing so, it may take a credit against the
favorable tax climate for manufacturing operations and to promote state portion of gross receipts tax of up to $10,000 per business
increased employment in New Mexico. The investment credit or $20,000 for a business in a rural area. The limit on assistance
provided for in the act is an amount equal to the compensating tax to a particular small business would apply to the total amount
rate (5.125%) applied to the value of qualiied equipment. The of assistance provided by all national laboratories to that busi-
credit may be claimed by the taxpayer incorporating the quali- ness. Local option gross receipts tax is excluded. The maximum
ied equipment into a manufacturing operation in New Mexico, credit is $2,400,000 in any calendar year. Qualiied expenses
provided certain employment conditions are met. range widely from wages/beneits to providing mentors to the
small business in partnership with the laboratory. The business
The value of the qualiied equipment is the adjusted basis es- must certify to the laboratory that the assistance it seeks is not
tablished for the equipment under the applicable provisions of available at reasonable cost through private industry.
the Internal Revenue Code. The employment conditions are:
Technology Jobs Tax Credit
1. for every $500,000 of equipment, one employee must be
added up to $30 million, and Any taxpayer doing qualiied research and development at a
facility in New Mexico (other than one operated for the U. S.
2. for amounts exceeding $30 million, one employee must be government) may claim a credit equal to 4% of qualiied expen-
added for each $1 million of equipment. ditures. Qualiied expenditures include rent, facility operation and
maintenance (except for facilities owned by the taxpayer before
A taxpayer must apply for the credit. Additional information the effective date, owned by a local government as an industrial
on the credit is provided with application forms available from revenue bond project or for which the taxpayer received another
the Department. Once approval is granted by the Department, credit), equipment, software, payroll and technical manuals and
the amount of any available credit may be applied against the materials. Taxpayer must apply to this department for approval of
taxpayer’s compensating tax, gross receipts tax (does not include credit amounts within one year of the end of the calendar year in
county or municipal taxes) or withholding tax due. The amount which the expenditure occurred. After approval, the basic credit
of investment credit claimable on any CRS return is limited to may be applied against state taxes due on the CRS-1 return. Ad-
85% of CRS taxes due. On January 1 of any year certain claim- ditional credits can be earned by certain taxpayers who increase
ants may cash in their remaining approved credit. their payroll expenses over the prior year. These additional credits
can only be applied to income tax liabilities. The credit amount
Rural Job Tax Credit doubles if the qualiied facility is in a rural area. On the effective
date, "rural area" will be that part of the state outside Bernalillo
Eligible employers may earn a credit for each qualifying job cre- and Dona Ana Counties plus a 3-mile zone around those counties
ated on or after July 1, 2006. The credit may be applied against and Rio Rancho. A recapture clause applies.
the state taxes due on the CRS return (excluding local option
gross receipts taxes) or against personal or corporate income tax. Tax Paid to Another State

An “eligible employer” is one who has been approved by the The amount of sales, compensating or similar tax (up to a 5.125%
Economic Development Department for in-plant training assis- rate) paid to another state on property acquired in that state or
tance. A “qualifying job” is one that is occupied by an eligible another state for use in New Mexico may be credited against
employee for at least 48 weeks in a 12-month qualifying period. the amount of compensating tax due to New Mexico on the
The “rural area” of New Mexico excludes Albuquerque, Los property (7-9-79).
Ranchos, Los Alamos, Rio Rancho, Santa Fe, and Las Cruces,
and the area within ten miles of these municipalities. A “tier Tax Paid to Another State;
one” area is deined as a municipality within a rural area with a Product of Research and Development Service
population of 15,000 or less. A “tier two” area is a municipality
within a rural area with a population over 15,000. When a taxpayer pays gross receipts, sales or similar tax in an-
other state, or political subdivision of that state, on the product
The credit amount equals 25% of the irst $16,000 in wages paid of research and development services performed outside New

- 38 -

Mexico but initially used in New Mexico a credit against gross        If a taxpayer's business location is within a municipality, the 
receipts tax can be claimed. This credit can only be claimed for      amount of the new credit is 10% of the receipts from sales of 
receipts after July 1, 1989, and the amount of the credit can not     services for resale multiplied by 3.775%. If the taxpayer's business 
exceed 5.125% multiplied by the amount subject to by both New         location is in the unincorporated area of a county, the amount of 
Mexico and the other state or political subdivision of that state.    the new credit is 10% of the receipts from sales of services for 
To claim this credit taxpayers should use the Non-New Mexico          resale multiplied by 5%.
Research and Development Credit Form (RD-1).
                                                                      This credit does not apply to receipts from selling a service to 
Compensating Tax on Construction Projects                             a governmental entity or to a prime contractor who operates a 
                                                                      facility in New Mexico designated as a national laboratory by 
When a person in the construction business owes gross receipts        an act of congress.
tax on the sale of a construction project, the person may take a 
credit against the gross receipts tax due for the amount of any         Research and Development Small Business Tax Credit
compensating tax (NOT GROSS RECEIPTS TAX) previously 
paid on construction materials and services incorporated into the     Qualiied research and development small businesses are able to 
construction project (7-9-79).                                        claim this credit equal to the sum of all gross receipts, compensat-
                                                                      ing or withholding taxes owned to New Mexico for a reporting 
The credit must be taken for the same report period in which the      period. A qualiied research and development small business is a 
gross receipts tax is paid. Use the Special Contractor’s Report       corporation, general partnership or similar entity with less than 25 
for  Compensating  Tax  Credit (ACD-31077)  to  compute  the          employees, revenues less than $5 million per year and qualiied 
credit and attach the form to the CRS-1 Form with the schedule        research expenditures equal to 20% of total expenditures in the 
of computation.                                                       year the credit is claimed. This credit can be claimed for no more 
                                                                      than 3 years, from July 1, 2005, through June 30, 2009. 
Forms for claiming the above credits and further information on 
the credits may be obtained from the Department’s district tax        Businesses claiming this credit must still report the original tax 
ofices or the Santa Fe headquarters.                                  liability on the CRS-1 Form.

               High-Wage Jobs Tax Credit                                    Affordable Housing Tax Credit

Eligible employers can claim a credit equal to 10 percent  of wages   The Mortgage Finance Authority (MFA) is authorized to issue 
and beneits for new employees in "high-wage, economic-based"          investment vouchers for persons investing in affordable housing 
jobs. The law limits the credits to $12,000 per eligible employee     projects at the rate of 50 percent of the investment. The vouch-
for up to four years. More than 50 percent of sales must be to        ers, which may be sold or transferred, may be applied against 
persons outside New Mexico, and the employer must be eligible         gross receipts, compensating, withholding, personal income or 
for in-plant training assistance. Other conditions: the jobs must     corporate income tax liabilities. Unused credits may be carried 
be created between July 1, 2004, and June 30, 2014, be occupied       forward for up to ive years. The MFA is required to adopt rules 
for at least 48 weeks of the year before the credit claim, and pay    for the approval, issuance and administration of the vouchers. 
at least $40,000 annually if located in a municipality of 40,000 
or more residents and at least $28,000 elsewhere in the state.                           Hospital Credit
An "eligible employer" means an employer who: (1) made more 
                                                                      Hospitals licensed by the New Mexico Department of Health may 
than ifty percent of its sales to persons outside New Mexico dur-
                                                                      claim a gross receipts tax credit equal to the following percentage 
ing the most recent twelve months of the employer's modiied 
                                                                      of taxable gross receipts: 
combined tax liability reporting periods ending prior to claiming 
                                                                      For hospitals located in a municipality:
a high-wage jobs tax credit, and (2) is eligible for development      ● 0.755 percent on or after July 1, 2007, and before July 1, 2008;
training program assistance pursuant to Section 21-19-7 NMSA          ● 1.51 percent on or after July 1, 2008, and before July 1, 2009;
1978. The deinition of "beneits" refers to federal law. Excluded      ● 2.265 percent on or after July 1, 2009, and before July 1, 2010;
from eligibility are persons who have worked as employees or          ● 3.02 percent on or after July 1, 2010, and before July 1, 2011, 
independent contractors for companies that own stock of the             and 
company applying for the credits.                                     ● 3.775 percent on or after July 1, 2011.  

Sale of Service For Resale Tax Credit                                 For hospitals located in the unincorporated areas of a county:
                                                                      ● 1 percent on or after July 1, 2007, and before July 1, 2008,
                                                                      ● 2 percent on or after July 1, 2008, and before July 1, 2009,
Any taxpayer who sells a service for resale in the ordinary course 
                                                                      ● 3 percent on or after July 1, 2009, and before July 1, 2010,
of business when the receipts from the resale are not subject to      ● 4 percent on or after July 1, 2010, and before July 1, 2011, and 
gross receipts or governmental gross receipts tax may claim a         ● 5 percent on or after July 1, 2011.
credit against their gross receipts tax liability. The buyer must 
give the seller documentation that the service is being purchased     For purposes of this credit a “hospital” means a facility providing 
for resale in the ordinary course of business.                        emergency or urgent care, inpatient medical care and nursing 

                                                                    19

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care for acute illness, injury, surgery or obstetrics and includes        Thermal Units (“mm Btu”) of sulfur dioxide, .025 pounds 
a facility licensed by the Department of Health as a critical as-         per mm Btu of oxides of nitrogen and .01 pound per mm 
sess hospital, general hospital, long-term acute care hospital,           Btu of total particulates in the lue gas.  
psychiatric  hospital,  rehabilitation  hospital,  limited  services   2. Remove the greater of (1) what is achievable with the best 
hospital and special hospital.                                            available control technology, or (2) 90 percent of the mercury 
                                                                          emitted from the input fuel.  
   Biodiesel Blending Facility Tax Credit                              3. Capture and sequester or control carbon dioxide emissions 
                                                                          so that by the later of January 1, 2017, or 18 months after 
A taxpayer who is a rack operator as deined in the Special Fuels          commercial operation date no more than 1,100 pounds per 
Supplier Tax Act could claim a gross receipts and/or compensating         megawatt-hour of CO2 is emitted into the atmosphere.
tax credit equal to 30 percent of the cost of purchasing or install-   4. All infrastructure required for sequestration is in place by the 
ing biodiesel blending equipment. The credit could not exceed             later of January 1, 2017, or 18 months after the commercial 
$50,000 for equipment installed at one facility.  Taxpayers would         operation date.
apply to the Energy, Minerals and Natural Resources Department         5. Include methods and procedures to monitor the fate of the 
which would issue a certiicate of eligibility if the taxpayer and         CO2 captured and sequestered from the facility.
their expenditures meet the requirements of the section. Eligible      6. Does not exceed 700 net megawatts nameplate capacity. 
taxpayers would then provide the certiicate of eligibility to the 
Taxation and Revenue Department in order to claim the credit.          To claim the credit, the interest owner would submit to the Taxa-
Approved claims for all taxpayers in one year cannot exceed            tion and Revenue Department a certiicate issued by the New 
$1 million. Credit amounts in excess of a liability can be car-        Mexico Environment Department which certiies that the facility 
ried forward for four years. If a credit claimant ceases biodiesel     is qualiied for purposes of the credit.  Approved credits could be 
blending without completing at least 180 days of availability of       claimed against a taxpayer’s gross receipts tax, compensating tax 
the facility within the irst 365 days of issuance of the certiicate    or withholding tax liability.  If the credit amount exceeded the 
of eligibility, any amount of approved credit not applied would        taxpayer’s liability, the excess could be carried forward for up 
be extinguished. Taxpayers would be required to ile amended            to ive years.  The aggregate amount of tax credit that could be 
returns and self-assess the tax owed and return any tax credit         claimed with respect to each qualiied generating facility would 
received within 425 days of the date of issuance of the certiicate.    be $60,000,000.  If a facility that had received certiication did 
                                                                       not sequester or control CO2 emissions, the certiication shall be 
   Unpaid Doctor Services 
                                                                       revoked and the taxpayer would be required to refund to the state 
Licensed medical doctors or licensed osteopathic physicians may        any tax credits already granted for that facility. If the taxpayer 
claim a credit against gross receipts taxes due for the value of       demonstrates to the Environment Department that the taxpayer 
unpaid bills for medical care services performed while on call         made every effort to sequester or control CO2 emissions, and 
to a hospital. The value of unpaid  qualiied health care services      that their inability to meet the sequestration requirements was 
cannot exceed 130 percent of the reimbursement rate for the            beyond their control, the Environment Department will determine 
services under the Medicaid program. The credit can only be            the amount of the credits that shall be refunded.  The refund 
taken if the medical services performed remains unpaid one             would be required within 180 days of the order by the Environ-
year after the date of billing and the licensed medical doctor or      ment Department.  Expenditures for which a taxpayer claims a 
licensed osteopathic physician has reason to believe it will not be    credit would be ineligible for credits under the Investment Credit 
paid because: 1) health insurance did not cover the client or the      Act or any other credit against gross receipts, compensating or 
medical services; 2) the client was not eligible for Medicaid, and     withholding taxes.
3) the charges are not reimbursable under the Indigent Hospital 
                                                                       Alternative Energy Products Manufacturing Tax Credit
and County Health Care Act.  This credit would be phased in over 
three years, one-third available from July 1, 2007, through June       A new tax credit is created for up to 5% of a taxpayer's spending 
30, 2008, two-thirds available from July 1, 2008, through June         on manufacturing equipment used in a manufacturing operation 
30, 2009, and the full amount July 1, 2009, and thereafter.            that produces "advanced energy products." Advanced energy 
                                                                       products are deined as vehicles powered by advanced energy 
   Advanced Energy Tax Credit
                                                                       sources, fuel-cell systems, renewable-energy systems and any 
Interest owners may claim the advanced energy tax credit in the        components of these as well as components of integrated gasii-
amount of 6 percent of their expenditures for the development          cation combined cycle coal facilities and facilities related to the 
and construction of a new solar thermal electric generating facility   sequestration of carbon from integrated gasiication combined 
or a new or re-powered coal-based electric generating unit and         cycle coal plants. Renewable energy systems are deined to 
an associated coal gasiication facility. Qualiied facilities would     include systems based on photovoltaic energy, solar-thermal 
have to begin construction no later than December 31, 2015.  To        energy,  biomass  energy,  wind  energy,  hydrogen  and  battery 
be eligible, a coal-based generating unit would also need to meet      cells. "Qualiied expenditure" would be limited to the value of 
the following criteria:                                                manufacturing equipment for which the credit is being claimed. 
                                                                       The tax credit can be claimed against the taxpayer's gross receipts 
1. Emit the lesser of (1) what is achievable with the best available   tax, compensating tax, withholding tax, interstate telecommunica-
   control technology, or (2) .035 pounds per million British          tions gross receipts tax, telecommunications relay surcharge and 
                                                                       E-911 surcharge liabilities but cannot be claimed against local 

                                                                     20

- 40 -

option gross receipts taxes. If the amount of the credit exceeds
a taxpayer's liability, the excess can be carried forward for up Effective January 1, 2001, taxpayers who pay electronically
to ive years. To be eligible to claim a credit the taxpayer shall will have a ive-day grace period (for penalties only) to correct
employ at least one new full-time employee for every $500 the transmission if payment identiied to the taxpayer reaches
thousand of expenditures up to $30 million, and at least one new the department or its iscal agent but otherwise lacks required
full-time employee for every $1 million of expenditures over $30 information.
million. Credits must be applied for within one year of making a
qualiied expenditure. If a taxpayer ceases operations at a facil- Reporting Periods
ity for at least 180 days within a two-year period after claiming
credits, no additional credits will be granted with regard to that Monthly Filing
facility. Amounts of credit approved but not yet claimed would
be extinguished and the taxpayer would owe the amount of tax A monthly iling period is assigned when you register with the
that the claimed credit had offset. department unless you qualify for and request either a quarterly
or semi-annual iling period. Monthly reporting periods are
Credit for Penalty Pursuant to
from the irst day of the month to the last day of the month;
Section 7-1-71.2 NMSA 1978
i.e., January 1 through January 31. New businesses whose start-
Taxpayers who paid a penalty pursuant to Section 7-1-71.2 business date is after the irst of the month should still use the
NMSA 1978 prior to July 1, 2007, may claim a credit for the irst day of the month to the last day of the month as the report
penalty amount paid. The credit must be claimed prior to July 1, period.
2010, and can be applied against the taxpayer’s gross receipts,
compensating or withholding tax liability within a report period. Requesting or Changing from Monthly to Quarterly or
Any credit amount that exceeds a taxpayer’s liability for a report Semi-Annual Filing
period can be carried forward for up to three years.
If you are on a monthly iling basis and your combined total
HOW AND WHEN TO REPORT AND PAY CRS TAXES tax due averages $200 a month or less, you may apply with the
department to ile either quarterly or semi-annually. File the Busi-
You should report gross receipts, compensating and withholding ness Tax Registration Update (included in the CRS-1 Filer's Kit).
taxes using the CRS-1 Form. The CRS-1 Form and tax are due Until you receive notiication that you have been approved to ile
on the 25th of the month following the end of your reporting quarterly or semi-annually, you must continue to ile monthly. Your
period. If the 25th falls on a Saturday, Sunday or legal holiday approval will be effective at the beginning of the next quarterly or
the CRS-1 Form is due the next business day. We look at the U.S. semi-annual period. If you are approved for quarterly reporting
Postal Service postmark or time stamp of a qualifying courier in February, you would continue to ile monthly CRS-1 Forms
service (currently designated by the U.S. Secretary of the Treasury for February and March; your irst quarterly report would be for
under 26 USCA 7502) on the envelope to determine if a report April through June. If you are approved to ile on a quarterly or
was iled on time. A CRS-1 Form must be iled whether or semi-annual basis and your tax liability exceeds the $200-a-month
not any tax is due. If no tax is due, ile a “zero” report. Please average for any twelve-month period of time, you are required
do not mail cash. to convert to a monthly iling basis. Refer to the Business Tax
Registration Update, Form ACD-31075.
If You Owe $25,000 or More
Quarterly Filing
If your combined tax liability for gross receipts, compensating,
withholding, governmental gross receipts, leased vehicle gross Quarterly reporting periods are January 1 through March 31, April
receipts and interstate telecommunications gross receipts taxes 1 through June 30, July 1 through September 30 and October 1
and leased vehicle surcharge averaged $25,000 or more per month through December 31.
for the previous calendar year (regardless of the tax due for the
current month), statute requires your payment in usable funds by Semi-Annual Filing
the tax-due date. You may choose one of several special payment
methods to make the payment, but you must make your payment Semi-annual reporting periods are January 1 through June 30
by the due date appropriate for the method you choose. For the and July 1 through December 31.
mechanics of the choices and more detailed information, please
request our publication “FYI-401" from your local district tax Calculating Late-Filing Penalty and Interest
ofice or view it online: www.tax.state.nm.us/.
If you ile your CRS-1 Form anytime after the due date, you
IMPORTANT: Check the appropriate box on your CRS-1
should add penalty and interest to the amount of tax due. Pen-
Form for payment by automated clearinghouse or federal
alty is 2% per month or partial month the payment is late up to
wire transfer. Your CRS-1 Form must be mailed on or before
a maximum of 20% of tax due or a minimum of $5.00. When
the due date, or penalty will be assessed at 2% per month, up
you are late iling your CRS-1 Form and you owe no tax, you
to 20%, of the amount of tax due even if payment has been
still owe a $5.00 penalty. Interest is calculated at a rate of 4%*.
made in a timely fashion.
For report periods after January 1, 2001, interest is calculated

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on a daily basis using the following formula: and the reason for overpayment. The most common reason for
overpayment is neglecting to claim an exemption or deduction
Tax Due x .010958904%* x Number of Days Late = Interest Due to which you are entitled. Be sure to include documentation to
support your claim for refund.
No interest is due if, at the time of payment, interest due is less
than $1.00. Unlike penalty which has a 20% maximum, interest You can apply for a refund up to three years after the end of the
continues to accrue until you make payment. year in which the payment was due; i.e., if you overpaid on the
* NOTE: This is the interest rate in effect for the second quarter December 2006 report, you have until December 31, 2010, to
of 2010. The interest rate is set by the U.S. Internal Revenue code apply for a refund of the overpaid amount because that report
(IRC) and can change on a quarterly basis. For current quarterly was due January 25, 2007.
and daily interest rate visit our web site at Ê NOTE: If the department denies your claim for refund in
www.tax.state.nm.us. whole or in part, you may ile a protest with the department
within 90 days of either mailing or delivery of the denial or ile
Your return must be postmarked by the United States Postal a lawsuit in Santa Fe District Court. If the department does not
Service or time stamped by a qualifying courier service (cur- take action on your claim within 120 days of receiving your
rently designated by the United States Secretary of the Treasury claim, you may either reile it if you are within the three-year
under 26 USCA 7502) or received on or before the due date, or statute of limitation, or you may ile a protest within 90 days
penalty will be assessed even if payment has been made in a from the expiration of the 120 days after you iled the claim with
timely fashion. the department. For more information on your remedies, please
request FYI-402 from your local district tax ofice or view it
Special Penalties for Incorrectly Reporting the Deductions online at www.tax.state.nm.us/.
Under Sections 7-9-92 & 93 NMSA 1978 Ê NOTE: Claims for refund of tribal taxes are to be iled with the
department but will be decided by the tribal taxing authority.
The 2004 Legislature enacted a new section of the Tax Adminis-
tration Act that sets penalties for taxpayers who do not correctly Amending the CRS-1 Form
report the amount eligible for new food or medical deductions.
As originally enacted, the penalty is the difference between the If after iling a CRS-1 Form you ind that information supplied
reported deduction amount and the correct amount multiplied by on that form was incorrect, you should submit an amended form.
twice the applicable local option tax rates. It applies to understating When amending the CRS-1 Form, be sure to check the “amended
this deduction as well as overstating it. This special penalty does report” box and write in the tax period you are amending. Fill
not apply if a taxpayer chooses not to deduct qualiied receipts. out the form with the information as it should have been iled
This penalty is in addition to other applicable penalties. originally. If you underpaid, be sure to include payment for the
difference between what you paid and what you owe. Add penalty
Effective July 1, 2007, the double local option tax penalty for and interest on the underpaid amount. If you voluntarily amend
failure to correctly report the amount of gross receipts tax on a CRS-1 Form (i.e., without receiving an assessment) within 12
food and medical services was repealed. Taxpayers who paid months of the original iling of a return and pay any additional tax
the double local option tax penalty since it was irst imposed on due, you will not be subject to penalty, but interest will be due.
January 1, 2005, can claim a credit prior to July 1, 2010, equal to
the amount of the penalty paid. The credit can be applied against ACCOUNT NOTICES
gross receipts, compensating or withholding tax liability and any
credit that exceeds a taxpayer’s liability can be carried forward While you are a registered CRS taxpayer, you may at some point
for up to three years. Please visit the department’s website at receive one of the following account notices from the department.
www.tax.state.nm.us/ or call your local district tax ofice for Here is a description of them:
additional information on how to claim this credit.
Assessment
Applying for a Refund
We issue an assessment for tax, penalty and interest due. The
If you ind you have overpaid gross receipts, compensating, most common reasons for which the department issues an as-
withholding, governmental gross receipts, leased vehicle gross sessment are:
receipts or interstate telecommunications gross receipts tax, or 1. Taxpayer did not include payment with the CRS-1 Form;
leased vehicle surcharge, the procedure to follow to apply for a
refund is as follows: 2. Taxpayer paid tax at the incorrect rate. Always check the tax
rate for your business location on the tax rate schedule as rates
1. Amend the CRS-1 Form for the period or periods in which may change in January and July of each year;
you overpaid (see below for procedure for amending a report).
3. Taxpayer iled the CRS-1 Form late without adding penalty
2. Complete the Application for Tax Refund (RPD-41071) and interest for late iling;
included in the CRS-1 Filer's Kit or online at: www.tax.state.
nm.us/. On the form state the amount and type of tax you overpaid 4. The Department audited the taxpayer’s books and records

- 42 -

and discovered unreported receipts or disallowed deductions. example, a check written for $10.00 may be encoded for $100.00.
The Department then receives $100.00 from the taxpayer's bank.
Occasionally the department will issue an assessment due to a To recoup the overpayment, the taxpayer should complete the
department encoding error. In these cases the taxpayer has writ- Application for Tax Refund (RPD-41071) and enclose a copy of
ten a check for the correct amount but the department encoded the relevant bank statement so the Department can verify that
the check for the incorrect amount. For example, a check written the bank paid the higher amount.
for $100.00 may be encoded for $10.00. The department then
receives only $10.00 from the taxpayer's bank. The taxpayer RESPONSES TO COMMON QUESTIONS AND
should verify on their bank statement that the bank paid the CONCERNS OF CRS TAXPAYERS
lesser amount, pay the principal amount of the assessment, and
I didn’t receive my CRS-1 Forms in the mail!
enclose a copy of the check showing the department's encoding
error. The Department will then abate the penalty and interest It is the taxpayer’s responsibility to obtain forms. If the iling
amounts on the assessment. deadline is approaching or has arrived and you do not have a cur-
Ê NOTE: The department will issue assessments to non- rent CRS-1 Form, you can ile online at https://eile.state.nm.us/
members of the Santa Clara, Santa Ana, Nambe, Laguna, Sandia, uls/default.aspx. If iling online is not an option for you, you should
Pojoaque, Cochiti, Kewa, Ohkay Owingeh, Taos and Picuris ile using an old CRS-1 Form. The most common reason taxpay-
Pueblos and the Jicarilla Apache Nation with, and on behalf of, ers do not receive their forms in the mail is they have changed
the Pueblos and Nation with respect to the tax imposed by these their address without notifying the Department. File a Business
Pueblos and Nation. Tribal oficials must approve any abate- Tax Registration Update Form (ACD-31075) to notify us of any
ment, closing agreement or installment agreement associated address change. The Business Tax Registration Update Form is
with the assessment. included in the CRS-1 Filer's Kit. Blank CRS-1 Forms and Busi-
ness Tax Registration Update (ACD-31075) are available at your
Notice of Billing local district tax ofice and online:
www.tax.state.nm.us/trd_form.htm.
We issue Notices of Billing the month after issuing an assessment
if we have not received payment for that assessment. I overpaid in one report period. Can I take a credit for the
Ê NOTE: If you receive an assessment, pay it and then receive overpayment on a subsequent report?
a Notice of Billing, don’t panic. Your payment probably was not
processed in time to clear your account. If you receive a second No. You must amend your CRS-1 Form for the period in which
Notice of Billing for that same assessment, you should contact you overpaid and apply for a refund. (See procedures for amending
your local district tax ofice listed inside the front cover of the and requesting refunds on page 22.)
CRS-1 Filer's Kit.
How do I separate ("back out") gross receipts tax from total
Non-Filer Notice gross reciepts?
We issue a Non-Filer Notice to a taxpayer with an active ID number See the following examples of how to separate the gross receipts tax:
who has not iled a CRS-1 Form for a report period. New Mexico
statute requires taxpayers with active ID numbers to ile for each 1) To separate tax from total receipts at the end of the report pe-
reporting period whether or not they have any receipts. riod, irst subtract deductible and exempt receipts, and then divide
Ê NOTE: To clear your account of non-iled periods, ile CRS-1 total receits including the tax for the report period by one plus the
Forms for all non-iled periods. If you are no longer in business, applicable gross receipts tax rate. For example, if your tax rate is
you should cancel your ID number as of the date your business 5.5% and your total receipts including tax are $1,055.00 with no
closed using the Business Tax Registration Update (ACD-31075) deductions or exemptions, divide $1,055.00, by 1.055. The result is
included in the CRS-1 Filer's Kit. your gross receipts without tax (to enter in Column E of the CRS-1
Form) or $1,000.
Provisional Assessment 2) If your tax rate is 5.5% and your total receipts including tax
are $1,055.00, and included in that igure are $60 in deductions and
Under the automated collection system, the Department can issue another $45 in exemptions:
Provisional Assessments after we issue a Non-Filer Notice. The a) Subtract $105 (the sum of your deductions and exemptions)
amount of the assessment may be based on past amounts paid, from $1,055. The remainder is $950. This igure still includes the
or an amount based on industry comparables for the taxpayer’s tax you have recovered from your buyers.
type of business as reported on the registration application. b) Divide $950 by 1.055 (1 plus the 5.5% tax rate). The result
is $900.47.
Notiication of Overpayment
c) In Column E enter the sum of $900.47 plus $60 (the
We issue Notiications of Overpayment to taxpayers whose ac- amount of deductible receipts)*, or $960.47. This igure is your
counts show a credit of at least $25. gross receipts excluding tax.

Occasionally the Department will issue a Notiication of Over- * Unlike exemptions, deductions must be reported on the CRS-1
payment due to a Department encoding error. In these cases Form and therefore must be included in the amount reported in
the taxpayer has written a check for the correct amount but the Column D and then listed separately in Column E.
Department encoded the check for the incorrect amount. For
Information on exemptions and deductions begins on page 4.

- 43 -

How do I get a copy of my registration or past CRS-1 Forms? On the login screen of the CRS-WebFile system select "Forgot-
ten Password Help". The system will ask you a series of security
You must make the request in writing and include your ID Num- questions and then provide you with your password.
ber and current address. Allow 6 to 8 weeks for us to process the
request. You may also review your account history by using the How do I ile my CRS-1 Forms online?
Taxpayer Access Point at https://tap.state.nm.us/.
You can access our CRS-1 Form online iling program by follow-
Why do I get so much mail from the department? ing the steps below:
¾ Go to the Taxation and Revenue Department’s web site at
Many of the Department's billings are computer-generated and www.tax.state.nm.us/.
sent out automatically, so it's possible that your payment and ¾ Click on “Electronic Services”.
our notices have "crossed" in the mail. Sometimes, by the time ¾ Choose CRS-NET iling. The prompts will lead you through
we receive payments, it's too late to prevent the next round of the registration and iling process.
computer-generated letters from going out. Call your local tax of- ¾ Note: You must have iled at least one paper return prior to
ice to conirm the status of your account or review your account using the online system.
history at https://tap.state.nm.us/.
How long am I required to retain my CRS records? I have attempted to ile my CRS-1 Form electronically and
have received an error. Whom do I contact to resolve this?
New Mexico statute permits the department to assess back 10 years,
depending on the situation. The normal assessment period is 3 years Please contact our CRS Unit at (505) 827-0832 or our Web Page
back from the end of the year the tax was due. If you have under- Help Desk by e-mail at nmwebile@state.nm.us.
reported any one tax on the CRS-1 Form by more than 25%, the When I ile my CRS-1 Form electronically do I have to pay
department may assess back 6 years. If you have noniled reports, right away?
the department may assess back 7 years. If there is evidence of tax
fraud, the department may assess back 10 years.
No. You can choose to ile your CRS-1 Form electronically and at a
later time submit payment to the Department by mail. Be aware that
If I currently have an identiication number from the Taxation all due dates remain the same whether you ile electronically or not.
and Revenue Department as a registered proprietorship (i.e.
sole owner) and later decide to incorporate, may I continue What options do I have when paying my CRS taxes online?
to use this number?
When iling your CRS-1 Forms online you can pay your tax using
No. You must cancel the identiication number issued to you as one of the following methods:
a proprietorship and apply for a new identiication number as a ● Payment by credit card (VISA, MasterCard or American
corporation. The incorporation of a business qualiies as a change in Express only).*
form of ownership. Upon applying for your identiication number, ● Payment by electronic check.
you should indicate your date of incorporation as the "start business
● Payment by an approved special payment method. (For more
date" on the Application for Business Tax Identiication Number information on special payment methods and due dates, request
(ACD-31015) for the new number.
FYI-401 from your local district tax ofice or view it online:
www.tax.state.nm.us/.
When I am issued a new identiication number, what are
my NTTC (nontaxable transaction certiicate) requirements * A 2.49% convenience fee will be imposed on all credit card
when: 1) I execute NTTCs to my vendors and 2) I receive payments made.
NTTCs from my customers?
Can I ile an amended return online?
1) Under your new identiication number, apply for new NTTCs
and execute them with your vendors. No. At this time our online system cannot process an amended
2) For transactions after you are issued a new identiication
return. You should ile any necessary amendments by iling a paper
number all NTTCs you receive from your customers should relect CRS-1 Form. (See procedures for amending a return on page 22).
your new identiication number. Maintain all NTTCs you have
previously received in case you need to provide documentation to
Our phone number and e-mail address of record has changed
support any deductions taken before your identiication number
due to employee turnaround. How do we make these changes
changed.
for online iling?
You should return to the department or destroy any unused
You can make these changes by editing your proile using the CRS-
NTTCs issued by the Department to you under your old identiica-
WebFile system. To edit your proile, enter your CRS Identiication
tion number.
Number on the logon screen and click on registered user. On the
next screen page you will see an option to Edit Your Proile. Make
I have previously iled my CRS-1 Form online and wish to
this selection and follow the instructions provided.
do so again but I have forgotten my password. What should
I do?

- 44 -

PIT - 2
REV. 04/10
GENERAL INFORMATION FOR NEW MEXICO WITHHOLDING TAX
New Mexico withholding tax is similar to federal withholding tax. It is accepts the state copy of Federal Form W-2, W2-G, 1042-S, Foreign
based on an estimate of an employee’s New Mexico income tax liability Person's U.S. Source Income Subject to Withholding and 1099R, a mag-
and is credited against the employee’s actual income tax liability on the netic tape containing this information, or any substitute form acceptable
New Mexico personal income tax return. to the Internal Revenue Service so long as it relects the withholders
name, address and identiication number, the recipient's name and so-
Who Must Withhold cial cecurity number, and the amount of New Mexico income and with-
holding. If you, as an employer, have established a medical care savings
Every employer, including employers of some agricultural workers, who account program for your employees, it is your responsibility to deter-
withholds a portion of an employee’s wages for payment of federal in- mine what amounts are exempt from taxation. Reduce the New Mexico
come tax must withhold New Mexico income tax. There is a limited ex- taxable wages reported on Federal Form W-2 by amounts established
ception for certain nonresident employees. (See Note 2 below.) by the employer (or account administrator) as exempt from income tax.

“Employer” means a person doing business in New Mexico or deriving Annual Reconciliation
income from New Mexico sources who pays wages to an employee for
services performed. New Mexico withholding taxpayers may ile Form RPD-41072, Annual
Summary of Withholding Tax For CRS-1 Filers. The report is available
“Employee” means a New Mexico resident who performs services either for taxpayers use but is not required to be iled. This report will allow
within or without the state for an employer, or a nonresident of New you to reconcile the total amounts shown as withheld on annual state-
Mexico who performs services within the state or an employer. ments of withholding information returns furnished to withholdees (Fed-
eral Forms W-2, W-2G or 1099R) with the total tax withheld and paid to
“Wages” means remuneration in cash or other form for services per- New Mexico on return CRS-1. If you have underreported withholding on
formed by an employee for an employer. your CRS-1 returns, attach amended returns for the period(s) in which
underreporting occurred and remit the difference. If you have overpaid
Notes: 1) Pension and annuity income of a New Mexico resident is sub- withholding on your CRS-1 returns, attach Form RPD-41071, Application
ject to income tax in New Mexico, but New Mexico does not require pay- for Refund (included in this kit) and amended returns for the period(s) in
ers to withhold state income tax on pensions and annuities unless the which overpayments occurred.
payee requests the payer of their retirement beneits to withhold state
tax. To report withholding tax, a payer must be registered with the state How and When To Report and Pay Withholding Taxes
under the Combined Reporting System (CRS).
You should report withholding, gross receipts and compensating taxes
2) Employers are not required to withhold New Mexico income tax from on the CRS-1 Form or ile online at www.tax.state.nm.us, selecting
wages of nonresident employees working in New Mexico for 15 or fewer "CRS-NET" on the Resources menu on the home page. The CRS-1
days during the calendar year. Form and tax are due on the 25th of the month following the end of your
reporting period. If the 25th falls on a Saturday, Sunday or legal holiday,
3) Persons who are self-employed should not report withholding tax the CRS-1 Form is due the next business day. We look at the postmark
on their wages. Self-employed individuals should make estimated pay- on the envelope to determine if the paper return was iled on time. A
ments using the Form PIT-ES. CRS-1 Form must be iled whether or not any tax is due. If no tax is due,
ile a “zero” report. Do not mail cash.
Amount to Withhold
Taxpayers who need to ile withholding information with the Department
Refer to the New Mexico State Wage Withholding Tables for the amount of Workforce Solutions and the Workers Compensation Administration
to withhold. Percentage method tables are included in this kit. Look-up may do so online at https://eile.state.nm.us/uls/default.aspx.
tables may be requested from your local district tax ofice listed inside
the front cover of this kit, by calling the Forms Order Line at (505) 827- NOTE: Reporting withholding information to the Department of Work-
2206 or online at www.tax.state.nm.us/. No withholding is required if the force Solutions and the Workers Compensation Administration does not
total withholding for an employee during any one month is less than one fulill your obligation to report and pay withholding tax to the Taxation and
dollar. For New Mexico residents the employer is required to withhold Revenue Department. Taxpayers must still ile and pay using one of the
New Mexico income tax from all wages of the employee regardless of methods described in the above paragraph.
the employee’s work location. For nonresident employees, the employer
is required to withhold New Mexico income tax only from wages the em- If you change your business name or address or need to cancel your
ployee earns within the state. Refer to above deinitions of “employer,” CRS I.D. number, use the Business Tax Registration Update Form
“employee” and “wages” to determine if withholding tax is required. (ACD-31075) included in this kit and available from your local district
ofice or online at www.tax.state.nm.us/. Your reporting obligation does
Withholding on Gambling Winnings not cease automatically when you stop doing business or paying wages.
You must notify us to cancel your CRS I.D. number.
Operators, including nonproit entities, of gambling establishments (race-
tracks, casinos, state lottery, bingo) must withhold 6% from winnings or Child support withholding is NOT reported on the CRS-1 Form. For in-
submit information returns for state purposes if they are required to with-formation about child support withholding contact the Human Services
hold or report for federal purposes. Operators must report and pay over Department at 505-827-7200.
the amount of state tax withheld from gambling winnings on the CRS-1
Form. Withholding is required for both residents and nonresidents. You can use either the percentage method for calculating state withholding
tax or check the look-up tables. For both methods the same deinitions,
Withholding Tax Reporting Forms steps and procedures that apply in calculating federal income tax with-
holding apply to state withholding. If you use the cumulative method of
Every person who has withheld state tax during the year from wages, withholding for federal withholding, you may use this same method for
pensions, annuities or gambling winnings is required to ile an annual state withholding.
statement of withholding on or before the last day of February for each
employee, pension or annuity recipient, or gambling winner.New Mexico

- 45 -

Correct? (Call 1-800-829-3676 to order this publication.)
Federal Internal Revenue Service Publication 919, Is My Withholding
“exempt” on line 7 of the federal W-4 form.)
New Mexico tax withheld. Employees with exempt income should indicate rate for New Mexico state withholding purposes must also be used.
members with income from active duty military service) should not have withheld at the higher single rate for federal purposes, the single
example, Native Americans working and living on their tribal land; military NOTE: In the case of a married employee who has elected to be
Employees who have income that is exempt from New Mexico tax (for be withheld for state tax purposes.
W-4 is not mandatory. It is a convenience for employer and employee.
lat 4.9 percent of the supplemental wage or fringe beneit amount should
allowances for state withholding than for federal withholding. This duplicate
ployee's personnel ile. The employee may choose a different number of withhholding. If the federal withholding is calculated using a lat percent,a
across the top in prominent letters. Keep the New Mexico W-4 in the em- for state purposes using the same method used for calculating federal
W-4 for New Mexico, writing "For New Mexico State Withholding Only" beneits for federal purposes, you must also withhold from fringe beneits
the federal W-4 form. Employees should complete a copy of the federal use this same method for state withholding. If you withhold from fringe
Allowance Certiicate. (New Mexico does not have a state equivalent of the cumulative method of withholding for federal withholding, you may
Federal Internal Revenue Service Form W-4, Employee’s Withholding or supplemental wages should be used for state withholding. If you use
publications: The same method used for calculating federal withholding on irregular
they have claimed, you may recommend that they obtain the following or Fringe Beneits
f employees express concern over the number of withholding allowances I Withholding from Irregular or Supplemental Wages
For Further Information
holding amount. (each day of payroll period)
state tax purposes is one-quarter (25%) of any additional federal with- $14.04 Daily or Miscellaneous
for state purposes. The recommended level of additional withholding for $3,650.00 Annual
poses (see Form W-4, line 6), but very few consider additional withholding
Many employees request additional amounts be withheld for federal pur- $1,825.00 Semiannual
Additional Withholding Amounts $912.50 Quarterly
$304.17 Monthly
their Form W-4 for New Mexico withholding tax.
wages, taxpayers may increase the number of exemption allowances on $152.08 Semimonthly
or eliminated on such wages. To reduce or eliminate withholding on such $140.38 Biweekly
wages paid to the other state. New Mexico withholding tax can be reduced $70.19 Weekly
reduced, possibly to zero, by the credit allowed for the income tax on the ONE ALLOWANCE PAYROLL PERIOD
withholding tax. The New Mexico income tax on those wages will be
tax, imposed by the other state as well as to New Mexico income tax and $ 10.32 payment (line 6a plus line 6b)
in another state may be subject to income tax, and therefore withholding
c. Total state withholding tax on weekly wage
tax on that income. The wages earned during an extensive period spent
$ .62 $12.62 x .049
by another state New Mexico allows a credit for the other state’s income
Mexico income tax on all of their income, but if that income is also taxed b. Tax on remainder: $359.62 less $347 =
Mexico income tax. Residents of New Mexico are generally subject to New $ 9.70 person, from line "$347 and over":
time in another state with an income tax that is comparable to the New 6. a. Tax on irst $347, from Table 1, single
Employment may require some New Mexico residents to spend extensive $359.62 (subtract line 4 from line 1)
tions on how to eliminate New Mexico withholding on exempt income. 5. Wages less allowance adjustment
Please see "For Further Information" on the next page for speciic instruc- $140.38 4. Line 2 times line 3, allowance adjustment
23. Total allowances claimed
2. Income from active duty military service.
$70.19 2. Weekly allowance adjustment amount
member while domiciled on that land, reservation or pueblo. $500.00 1. Taxable weekly wage payment
lands of the reservation or pueblo of which the individual is an enrolled
recognized Indian nation, tribe or pueblo that was wholly earned on the Table of Exemption Allowance Adjustments
1. Income of a Native American who is a member of a New Mexico federally
The state withholding tax would be igured as follows:
Examples of income exempt from New Mexico tax are: W-4 (one personal allowance and the special withholding allowance).
New Mexico withholding on the exempt income would not be necessary. employee has claimed two (2) exemption allowances on federal Form
subject to federal taxation but exempt for New Mexico. In these situations A single employee has taxable wages of $500.00 weekly. This Example:
There are also situations where individuals may have income that is
single.
federal purposes (see federal Form W-4, line 6). based on the payroll period and on whether the employee is married or
3. If the employee requested that additional amounts be withheld for Determine the amount to withhold from the appropriate tax table Step 3.
care expenses. ied employer-sponsored beneit plans.
tax credits such as the Child Tax Credit or credits for child or dependent that is, after deduction of nontaxable premiums or contributions to quali-
2. If the employee increased W-4 allowances to offset expected federal taxable wage for state purposes is the same as for federal tax purposes;
Subtract that amount from the employee's taxable wage. The Step 2.
iling status on Form W-4 Withholding Allowances Worksheet (line E). payroll period.
1. If the employee claimed the special allowance for head-of- household the allowance adjustment amount in the table below for the appropriate
but underwithheld for state purposes: on federal Form W-4 (see "For Further Information" on the next page) by
tions in which an employee may be correctly withheld for federal purposes Multiply the number of exemption allowances the employee claims Step 1.
will be correct for state income tax purposes, but there are certain situa- method:
Generally, if an employee’s withholding is correct for federal purposes, it Use these steps to igure the state tax to withhold using the percentage
Special Situations Percentage Method Withholding
district tax ofice, by calling the Forms Order Line at (505) 827-2206, or online at www.tax.state.nm.us/
NOTE: If you prefer to use the look-up table method to determine amounts to withhold, look-up tables are available from your local
For pay periods beginning on or after July 1, 2010
NEW MEXICO STATE WAGE WITHHOLDING TABLES

- 46 -

                                            New Mexico State Wage Withholding Tax
                                           Tables for Percentage Method of Withholding
                                             (For wages paid on or after July 1, 2010)
                                    TABLE 1 - If the Payroll Period with Respect to an Employee is WEEKLY
                                            Exemption Adjustment = $70.19 per Allowance

(a) SINGLE person - including head of household:                         (b) MARRIED person
If the amount of wages               The amount of state tax to be       If the amount of wages               The amount of state tax to be
less adjustments is:                 withheld shall be:                  less adjustments is:                 withheld shall be:

Not over $39     .     .     .     . $0                                  Not over 149    .     .     .     .  $0
Over -                                                 of excess over -  Over -  But not over -                                 of excess over -
 39     $             145            $                 1.7%$       39    $149   -        $     303                    1.7%          $       149
 145    $             251            $ 1.80 +          3.2%$       145   $303   -        $     457            $ 2.62 +3.2%          $       303
 251    $             347            $ 5.18 +          4.7%$       251   $457   -        $     611            $ 7.54 +4.7%          $       457
 347                and over           9.70 +          4.9%$       347   $611   -            and over         $ 14.77+4.9%          $       611

                            TABLE 2 - If the Payroll Period with Respect to an Employee is BIWEEKLY
                                            Exemption Adjustment = $140.38 per Allowance

(a) SINGLE person - including head of household:                         (b) MARRIED person
If the amount of wages               The amount of state tax to be       If the amount of wages               The amount of state tax to be
less adjustments is:                 withheld shall be:                  less adjustments is:                 withheld shall be:

Not over $79     .     .     .     . $0                                  Not over $298    .     .     .     . $0
Over -  But not over -                                 of excess over -  Over -   But not over -                                of excess over -
$79    -$             290                              1.7%       $79    $298    -       $     606                              1.7%       $298
$290   -$             502            $ 3.60 +          3.2%       $290   $606    -       $     913            $ 5.23 +          3.2%       $606
$502   -$             694            $ 10.37+          4.7%       $502   $913    -       $     1,221          $ 15.08+          4.7%       $913
$694   -            and over         $ 19.40+          4.9%       $694   $ 1,221 -           and over         $ 29.54+          4.9%       $ 1,221

                            TABLE 3 - If the Payroll Period with Respect to an Employee is SEMIMONTHLY
                                            Exemption Adjustment = $152.08 per Allowance

(a) SINGLE person - including head of household:                         (b) MARRIED person
If the amount of wages               The amount of state tax to be       If the amount of wages               The amount of state tax to be
less adjustments is:                 withheld shall be:                  less adjustments is:                 withheld shall be:

Not over $85     .     .     .     . $0                                  Not over $323    .     .     .     . $0
Over -  But not over -                                 of excess over -  Over -   But not over -                                of excess over -
$85    -$             315                              1.7%       $85    $323    -       $     656                              1.7%       $323
$315   -$             544            $ 3.90 +          3.2%       $315   $656    -       $     990            $ 5.67 +          3.2%       $656
$544   -$             752            $ 11.23+          4.7%       $544   $990    -       $     1,323          $ 16.33+          4.7%       $990
$752   - and over                    $ 21.02+          4.9%       $752   $ 1,323 -           and over         $ 32.00+          4.9%       $ 1,323

                            TABLE 4 - If the Payroll Period with Respect to an Employee is MONTHLY
                                            Exemption Adjustment = $304.17 per Allowance

(a) SINGLE person - including head of household:                         (b) MARRIED person
If the amount of wages               The amount of state tax to be       If the amount of wages               The amount of state tax to be
less adjustments is:                 withheld shall be:                  less adjustments is:                 withheld shall be:

Not over $171  .     .     .     .   $0                                  Not over $646   .     .     .     .  $0
Over -  But not over -                                 of excess over -  Over -   But not over -                                of excess over -
$171   -$             629                              1.7%       $171   $646    -       $     1,313                            1.7%       $646
$629   -$             1,088          $ 7.79 +          3.2%       $629   $ 1,313 -       $     1,979          $ 11.33+          3.2%       $ 1,313
$ 1,088-$             1,504          $ 22.46+          4.7%       $ 1,088$ 1,979 -       $     2,646          $ 32.67+          4.7%       $ 1,979
$ 1,504-            and over         $ 42.04+          4.9%       $ 1,504$ 2,646 -           and over         $ 64.00+          4.9%       $ 2,646

- 47 -

$ 122.10 4.9%   +2.95 $            and over      -$ 122.10             $ 69.40 4.9%    +1.94 $           and over      -$ 69.40
91.30 $  4.7%   +1.51 $            122.10  $     -91.30 $              $ 50.20 4.7%    +1.04 $           69.40   $     -$ 50.20
60.60 $  3.2%   +0.52 $            91.30   $     -60.60 $              $ 29.00 3.2%    +0.36 $           50.20   $     -$ 29.00
29.80 $  1.7%                      60.60   $     -29.80 $              7.90 $  1.7%                      29.00   $     -7.90 $
of excess over -                   But not over - Over -               of excess over -                  But not over - Over -
                      Not over $29.80  .     .     .     .   $0                              $0          Not over $7.90   .     .     .     . 

                withheld shall be:         less adjustments is:                        withheld shall be:      less adjustments is:
      The amount of state tax to be     If the amount of wages              The amount of state tax to be     If the amount of wages
                                   (b) MARRIED person                         (a) SINGLE person - including head of household:

                                   Exemption Adjustment = $14.04 per Allowance
                TABLE 8 - If the Payroll Period with Respect to an Employee is DAILY or MISCELLANEOUS

31,750  $4.9%   +$ 768.00          and over      -$ 31,750             $ 18,0504.9%    +$ 504.50         and over      -$ 18,050
23,750  $4.7%   +$ 392.00          31,750  $     -$ 23,750             $ 13,0504.7%    +$ 269.50         18,050  $     -$ 13,050
15,750  $3.2%   +$ 136.00          23,750  $     -$ 15,750             7,550  $3.2%    +93.50$           13,050  $     -7,550$
7,750   $1.7%                      15,750  $     -7,750 $              2,050  $1.7%                      7,550   $     -2,050$
of excess over -                   But not over - Over -               of excess over -                  But not over - Over -
                      $0           Not over $7,750  .     .     .     .                      Not over $2,050  .     .     .     .  $0

                withheld shall be:         less adjustments is:                        withheld shall be:      less adjustments is:
      The amount of state tax to be     If the amount of wages              The amount of state tax to be     If the amount of wages
                                   (b) MARRIED person                         (a) SINGLE person - including head of household:

                                   Exemption Adjustment = $3,650.00 per Allowance
                      TABLE 7 - If the Payroll Period with Respect to an Employee is ANNUAL

$ 15,875 4.9%   +$ 384.00          and over      -15,875$              9,025  $4.9%    +$ 252.25         and over      -9,025$
$ 11,875 4.7%   +$ 196.00          15,875  $     -11,875$              6,525  $4.7%    +$ 134.75         9,025   $     -6,525$
7,875 $  3.2%   +68.00$            11,875  $     -7,875 $              3,775  $3.2%    +46.75$           6,525   $     -3,775$
3,875 $  1.7%                      7,875   $     -3,875 $              1,025  $1.7%                      3,775   $     -1,025$
of excess over -                   But not over - Over -               of excess over -                  But not over - Over -
                                                                                                                        .    .
                      $0           Not over $3,875  .     .     .     .                      Not over $1,025    .     .     .      $0

                withheld shall be:         less adjustments is:                        withheld shall be:      less adjustments is:
      The amount of state tax to be     If the amount of wages              The amount of state tax to be     If the amount of wages
                                   (b) MARRIED person                         (a) SINGLE person - including head of household:

                                   Exemption Adjustment = $1,825.00 per Allowance
                 TABLE 6 - If the Payroll Period with Respect to an Employee is SEMIANNUAL

7,938 $  4.9%   +$ 192.00          and over      -7,938 $              $ 4,513 4.9%    +$ 126.13         and over      -$ 4,513
5,938 $  4.7%   +98.00$            7,938   $     -5,938 $              $ 3,263 4.7%    +67.38$           4,513   $     -$ 3,263
3,938 $  3.2%   +34.00$            5,938   $     -3,938 $              $ 1,888 3.2%    +23.38$           3,263   $     -$ 1,888
1,938 $  1.7%                      3,938   $     -1,938 $              513  $  1.7%                      1,888   $     -513  $
of excess over -                   But not over - Over -               of excess over -                  But not over - Over -
                                                  .    .     
                      Not over $1,938    .     .     .      $0                               $0          Not over $513    .     .     .     . 

                withheld shall be:         less adjustments is:                        withheld shall be:      less adjustments is:
      The amount of state tax to be     If the amount of wages              The amount of state tax to be     If the amount of wages
                                   (b) MARRIED person                         a) SINGLE person - including head of household:(

                                   Exemption Adjustment = $912.50 per Allowance
                     TABLE 5 - If the Payroll Period with Respect to an Employee is QUARTERLY
                                         (For wages paid on or after July 1, 2010)
                                   Tables for Percentage Method of Withholding
                                   New Mexico State Wage Withholding Tax

- 48 -

ACD-31075                                                      STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
REV.8/07  
                                                                BUSINESS TAX REGISTRATION UPDATE
                                                                  PLEASE TYPE OR PRINT IN BLACK INK - Instructions on reverse 

                                                                                  CURRENT INFORMATION
 1.  New Mexico Taxation and Revenue Department Identification Number (NM TRD ID#)                                          2. Federal Employer Identification Number: (FEIN)
                                0 __ - __ __ __ __ __ __ - 00 __                                                                   __ __  -  __ __ __ __ __ __ __
 3.  Business Name                                                                                   4. DBA ( If applicable)

                                                                                  NEW INFORMATION
                                        FILL IN THOSE BOXES BELOW FOR WHICH A CHANGE IS BEING REPORTED
5.       Change the business registration status to: ACTIVE/CLOSED                 (Circle one)     6.        Change the Business Start Date to:                   /          /     
                                 Effective Date:                 /               /                             (Note:  When ownership has changed a new NM TRD ID# must be obtained)
 7.  Business Name                                                                                   DBA

 Business Phone Number   (              )                                      Ext.                           Other Phone Number     (               )             
 Mailing Address                                                                                     City                                        State              Zip Code         Country

 Business Location Address (not a PO Box)                                                            City                                        State              Zip Code             Country

 Add other physical location (Attach additional pages if necessary)                                  City                                       State              Zip Code             Country

 8. Will business pay wages to employees in New Mexico?                                                                                   ADD                      Effective Date:
                                                                                    9. Workers Compensation Fee? 
                      Yes                   No                                                                                            DELETE
 10. Seasonal  Businesses Only -   Change the business season to:      Season Start Month                                       Season End Month
 11.  Change the CRS Filing Status to:                            MONTHLY                                 QUARTERLY                                                SEMI-ANNUALLY
                                               (NOTE: Please review the filing status requirements on reverse before requesting a change.)
 12. Primary type of business in New Mexico (Check all that apply)                                                                                   13. Give a brief description of nature
 ADD   DELETE                                                                      ADD   DELETE                                                 of business
                    Accommodation, Food Services, and Drinking Places                      Manufacturing
                    Administration and Support Services and Waste                          Mining and Oil and Gas Extraction
                      Management and Remediation Services                                  Professional, Scientific and Technical Services
                    Agriculture, Forestry, Fishing  and Hunting                            Real Estate and Leasing of Real Property
                    Arts, Entertainment and Resource Management                            Rental and Leasing of Tangible Personal Property
                    Construction                                                           Retail Trade
                    Educational Services                                                   Transportation and Warehousing
                    Finance and Insurance                                                  Utilities
                    Government                                                             Wholesale trade
                    Health Care and Social Assistance                                      Other Services
 14. Federal Employer Identification Number (FEIN)                   _____________________                              ADD                         DELETE
 15.  Liquor License Type/No. : _______________________ 18.  Special Tax Registration Information - Only update if a change is necessary.
          ADD                   DELETE               CHANGE                                    Note: A Special Tax Registration must be completed when adding an activity below.
 16.  Public Regulation Comm. No. :___________________                    Gasoline Sales             ADD            DELETE    Severing Natural Resources           ADD                  DELETE
          ADD                   DELETE               CHANGE               Special Fuels              ADD            DELETE    Processing Natural Resources         ADD                  DELETE
 17.  RLD Contractor's License No. : ___________________ Cigarette Sales                             ADD            DELETE    Water Producer                       ADD                  DELETE
          ADD                   DELETE               CHANGE               Tobacco Products           ADD            DELETE    Gaming Activities                    ADD                  DELETE
                                                               You may want to request a Letter of Good Standing or a Certificate of No Tax Due.                                                 
 19.                  Are you closing a business?    
                                                               See instructions on the back of this form.
 20.  Before updating Owners / Partners / Corporate Officers / Association Members / Shareholders information below, please see the instructions on the 
       reverse side of this form.  
                                                                                  (Attach additional pages if necessary)
                              # 1           Add                    Change              Delete                 # 2           Add                 Change                            Delete
 SSN                                                                                                           
 NAME & TITLE
 ADDRESS
 PHONE & E-MAIL
 21.  I declare that the information reported on this form and any supplemental page(s) is true and correct.

 Print Name                                                                       Signature                                                                        Date
                      Send original to any Taxation & Revenue Department office listed on the back of this form.  Please keep a copy for your files.

- 49 -

This business tax registration update is to be used for the following tax programs: Gross Receipts, Compensating, Withholding, Workers Com-
pensation Fee, Gasoline, Special Fuels, Cigarette, Tobacco Products, Severance, Resource, Water Producers and Gaming Activities. All attach-
ments must contain the business name and New Mexico Taxation and Revenue Department Identiication Number (NM TRD ID#). Should you
need assistance completing this update, please contact the Department at one of the ofices listed below.
COMPLETE ONLY THE AREAS TO BE UPDATED OR CHANGED – If the ownership of a proprietorship has changed, a new NM TRD ID# is
required (i.e. A proprietorship has now become a corporation; a different family member is now taking ownership of the family business, etc). If the
ownership of a partnership has changed (i.e. a partner is no longer involved or you wish to add a partner) a new NM TRD ID# is required.
CURRENT INFORMATION
1. Provide the New Mexico Taxation and Revenue Department Identiication Number (NM TRD ID#)
2. Provide the Federal Employer Identiication Number (FEIN) if applicable. If the FEIN has changed as a result of an ownership change, a new NM TRD
ID# is required.
3. Provide the current business name and name the business is Doing Business As (DBA) (as it appears on Taxation and Revenue Department records before
the change is made).
NEW INFORMATION
4. Enter the name you are DOING BUSINESS AS if applicable.
5. Change the business registration status to ACTIVE or CLOSED. Circle one. Provide an effective date for the status change.
6. Change the Business Start Date if the date originally indicated is incorrect and no business activity has occurred.
7. Change as needed the Business Name, DBA, Business Phone Number and Extension, Other Phone Number, Mailing Address, Business Location Address
and add any other physical locations. (Attach additional pages if necessary). Complete ONLY items that have changes.
8. Check Yes or No. Every employer, including employers of some agricultural workers, who withhold a portion of an employee’s wages for payment of
federal income tax, must withhold NM income tax..
9. Check the box to Add or Delete the Workers’ Compensation Fee status. Provide an effective date when you become (or plan to become) a covered
employer or are no longer subject to the fee. For more information contact the Workers’ Compensation Administration at (505) 841-6000 or
www.workerscomp.state.nm.us.
10. Seasonal Businesses only – When the business is engaged in business activity outside the Business Season, the entity is no longer a Seasonal Business.
Indicate the new Business Season for a seasonal business only.
11. Request to change the CRS iling Status to Monthly, Quarterly, or Semi-annually. Please be guided by the following iling status requirements:
a) Monthly – due by the 25th of the following month if combined taxes due average more than $200 per month or if you wish to ile monthly regardless of
the amount due. Monthly periods are from the 1st of each month to the last day of each month.
b) Quarterly- due by the 25th of the month following the end of the quarter if combined taxes due for the quarter are less than $600 or an average of less than
$200 per month in the quarter. Quarters are January 1st - March 31st; April 1st – June 30th ; July 1st – September 30th ; October 1st – December 31st.
c) Semiannual due by the 25th of the month following the end of the 6-month period if combined taxes due are less than $1,200 for the semiannual period
or an average less than $200 per month for the 6 month period. Semiannual periods are January 1st - June 30th; July 1st – December 31st.
12. Add or Delete the business activity in which the business is engaged. More than one business activity can be selected. Please describe all business activities
that are "added". If you are unsure as to your entity's business classiication, please contact one of ofices listed below.
13. Briely describe the nature of the type(s) of business in which you will be engaging. The lack of information may affect the type of NTTC for which you
qualify.
14. Add or Delete the Federal Employer Identiication Number (FEIN), issued by the Internal Revenue Service. If the FEIN has changed as a result of an owner-
ship change, a new NM TRD ID# is required.
15. Liquor License Type/No. - Add, Delete or Change the Liquor License Type/No. issued by the Alcohol and Gaming Division of the Regulation and Licens -
ing Department.
16. Public Regulation Commission No. – Add, Delete or Change the Public Regulation Commission No. issued by the Public Regulation Commission.
17. RLD Contractor's License No. – Add, Delete, or Change the License Number issued by the Construction Industries Division of the Regulation and Licens -
ing Department.
18. Special Tax Registration information – Add or Delete an activity, which qualiies for Special Tax purposes. A Special Tax Registration form must be
completed when adding an activity. Taxpayers selling, leasing, or transferring a liquor license should request a letter of no objection from the Taxation &
Revenue Department.
19. Check this box if you are closing a business. Proprietorships may want to request a Letter of Good Standing from the Department to verify that there are
no outstanding liabilities or non-iled reports for the business you are closing. Corporations dissolving or withdrawing from doing business in New Mexico
should request a Corporate Certiicate of No Tax Due and contact the Public Regulation Commission. Purchasers/Lessee’s (Successor in Business) of a
business, license, or permit may also request a Certiicate of No Tax Due to ensure they are not liable for any taxes due the Department by the seller or les-
sor. A Request for Tax Clearance or Letter of Good Standing can be downloaded at www.tax.state.nm.us/. For additional information, please contact one
of the ofices listed below.
20. You may update an owner’s or partner’s address, telephone number, or e-mail address. You may add, change, or delete Corporate Oficers, Association
Member, or Shareholders and their corresponding address, telephone number or e-mail address. If you are unsure if a new NM TRD ID# is required, please
contact the Department at one of the ofices listed below. Note: When ownership has changed, a new NM TRD ID# must be obtained.
21. The registration update should be signed by an Owner, Partner, Corporate Oficer, Association Member, Shareholder, or authorized representative.
Return this form and all attachments to one of the ofices listed below.
Taxation & Revenue Department Taxation & Revenue Department Taxation & Revenue Department Taxation & Revenue Department
Manuel Lujan Sr. Building 5301 Central NE 2540 El Paseo, Bldg #2 400 N. Pennsylvania, Ste. 200
1200 South St. Francis Dr. PO Box 8485 PO Box 607 PO Box 1557
PO Box 5374 Albuquerque, NM 87198-8485 Las Cruces, NM 88004-0607 Roswell, NM 88202-1557
Santa Fe, NM 87502-5374 (505) 841-6200 (575) 524-6225 (575) 624-6065
(505) 827-0951

- 50 -

RPD-41071
Rev. 09/2009            STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
                                         APPLICATION FOR REFUND
Who Must File this Form. This form may be used to apply for a refund of most tax, fees or surcharges paid to the New Mexico Taxation 
and Revenue Department. To obtain a refund,  you are generally required to complete this form or submit a letter with substantially the same 
information. If your refund claim is the result of overstating the tax due on a previously iled income tax, estate tax or oil and gas tax return 
and you are iling an amended return, you do not need to attach an application for tax refund.  A complete amended return is suficient to 
support a valid claim for tax refund. Other exceptions to iling Form RPD-41071, Application for Refund, are listed in the instructions. 
How to File this Form. A valid claim for refund requires all information requested on this form. You must enter the primary taxpayer iden-
tiication number required by the New Mexico form and indicated on the return or payment. "Basis for refund" means a brief statement 
of the facts and the law on which the claim is based. The basis for refund must explain why the overpayment was made. Do not merely 
enter the word "overpayment". Attach a letter of explanation if the space provided is insuficient. See Other Required Attachments in the 
instructions. This Application for Refund must be signed by the taxpayer or the taxpayer's authorized agent. An incomplete or inaccurate 
application may cause the Department to invalidate your refund claim and return the application to you without action. 
To apply all or any part of your refund to another report period, liability or another tax or fee program, please state in detail the report period, 
liability or other tax or fee program to which you wish to apply the refund.
                                                                                Taxpayer  identiication  no. (Mandatory)
Name

Mailing address

City, state, ZIP code

Contact name                                                                    Phone number

I hereby certify that the State of New Mexico was overpaid the sum of _________________________________________

dollars ($ _______________) in __________________ taxes, for the period(s)  ______________ to _________________
                                         (type of tax)

Basis for refund: ___________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

I declare that the information reported on this form and any attached supplements is true and correct.

Signature of taxpayer or agent _____________________________  Title _____________________  Date ________

Type or print name ____________________________________________________ Phone ___________________

                     Return this form and attachments to the Taxation and Revenue Department,
                        P.O. Box 630, Santa Fe, New Mexico 87504-0630.

- 51 -

                                    Request for Direct Deposit
If you are requesting a refund of tax, fees or surcharges paid to the New Mexico Taxation and Revenue Department for any 
of the programs listed below and would like your refund deposited directly into your bank account, complete the following 
information. Note: If the information below is incomplete or incorrect, your refund will be mailed.
Combined Report System Taxes (CRS), Personal Income Tax, Corporate Income and Franchise Tax, Oil and Gas Proceeds Withholding Tax, 
Enhanced 911 Surcharge, Telecommunication Relay Service Surcharge, Water Conservation Fee, and Workers' Compensation Fee.

             1. Routing number:                                 3. Type:       Checking             Savings

             2. Account number: 

                                    FOR DEPARTMENT USE ONLY

I have analyzed the records of the Taxation and Revenue Department on _______________________________ , 20 _______
and have veriied the amount of tax overpayment. I hereby certify that a tax refund is due as claimed according to Section 7-1-26 
NMSA 1978. The amount of overpayment is for the following taxes:
                TAX PROGRAM                               AMOUNT

 1.                                             $
                                                                               Claim number
 2.
                                                                               Serial number
 3.
                                                                               Warrant number
                   Total interest to be refunded

                   Total amount to be refunded  $

Analysis of reason for overpayment:

Valid overpayment:      o  YES     o  NO        o  Need additional information Credit amount $_______________

Amended returns on ile: o  YES     o  NO        o   N / A                      Credit key____________________

                        Date requested ______________________________________

 Documents supporting this refund are on ile:
                                                                               GENERAL APPROVAL
 I recommend refund:

 Initiated by                                                                  Secretary or Delegate

                                                                               IF REQUIRED
 Section supervisor                              Date
                                                                               Attorney General's Ofice
 Bureau chief                                    Date

- 52 -

RPD-41071
REV. 9/09 STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
APPLICATION FOR REFUND
INSTRUCTIONS

• If you have any tax liability, the Taxation and Revenue Department may offset all or part of an allowed refund against such liability.
• If the Department denies your claim for refund in whole or in part, you may ile a protest with the Department within 90 days of either
mailing or delivery of the denial or ile a lawsuit in Santa Fe District Court. If the Department does not take action on your claim within
120 days of receiving your claim, you may either reile it if you are within the three-year statute of limitation, or you may ile a protest
within 90 days from the expiration of the 120 days after you iled the claim with the Department. If no action has been taken on the
refund claim within 210 days, the Department is statutorily prohibited from acting on a refund claim if the three-year statute of limitation
has passed. For more information on your remedies, please request FYI-402 from your local district tax ofice or view it on-line at www.
state.nm.us.
Other Required Attachments:
Amended Returns: If your refund is the result of overstating the tax, fees or surcharges due on a previously iled return, you must attach
a fully completed amended report for each period affected. See the Note under "Exceptions to Filing Form RPD-41071" below. Only one
Application for Refund is required per claim regardless of the number of periods amended. See the appropriate forms for instructions on
iling an amended return.
To claim a refund of gross receipts tax because you did not claim an allowable deduction, you must attach the following, if applicable: 1) a
copy of the nontaxable transaction certiicate (NTTC) executed by the buyer so we can verify that the NTTC was properly executed in a timely
manner; or 2) a copy of any other documentation necessary to support the deduction (for example, a farmer or rancher statement).
To claim a refund of gross receipts tax paid because of an exemption that you did not claim, you must attach documentation necessary
to support the exemption (for example, invoices, contracts, etc.).
To claim a refund of an overpayment due to an offset by the Department, please attach a copy of the offset notice.
If you have questions regarding the documents that should be iled with an Application for Refund or an amended return, contact the
Department using the contact information on the original return or the local district ofice listed below.

Exceptions to Filing Form RPD-41071, Application for Refund. If claiming a refund under certain tax, fee or surcharge programs you
must use the program speciic application for refund form and follow certain procedures which are applicable to those programs. If you are
requesting a refund of oil and gas taxes other than the oil and gas proceeds withholding tax, use Form RPD-41136, Application for Tax
Refund - Oil and Gas. If you are requesting a refund of vehicle-related or driver-related taxes or fees, use Form MVD-10208, Request for
Refund. If requesting a refund of Tobacco Products Tax, use Form RPD-41318, Application for Tobacco Products Tax Refund. If requesting
a refund of cigarette tax, use Form RPD-41211, Application for Refund of Cigarette Tax. All forms can be found on the Department's web
site at www.tax.state.nm.us. Click on "Forms", then select the applicable tax program.

Note: If your refund claim is the result of overstating the tax due on a previously iled income tax, estate tax or oil and gas tax return and
you are iling an amended return, you do not need to attach an application for refund. A complete amended return is suficient to support
a valid claim for refund. Be sure to submit all supporting forms, schedules, and backup as requested by the instructions when iling an
amended return.

ALBUQUERQUE: LAS CRUCES:
Taxation & Revenue Department Taxation & Revenue Department
Bank of the West Building 2540 El Paseo, Bldg. # 2
5301 Central Ave., NE P.O. Box 607
P.O. Box 8485 Las Cruces, NM 88004-0607
Albuquerque, NM 87198-8485 Telephone: (575) 524-6225
Telephone: (505) 841-6200
ALAMOGORDO (575) 437-2322
SANTA FE: SILVER CITY (575) 388-4403
Taxation & Revenue Department (above calls transfer to Las Cruces)
1200 South St. Francis Drive
P.O. Box 5374 ROSWELL:
Santa Fe, NM 87502-5374 Taxation & Revenue Department
Telephone: (505) 827-0951 400 North Pennsylvania, Suite 200
P.O. Box 1557
FARMINGTON: Roswell, NM 88202-1557
Taxation & Revenue Department Telephone: (575) 624-6065
3501 E. Main Street
P.O. Box 479 CARLSBAD (575) 885-5616
Farmington, NM 87499-0479 CLOVIS (575) 763-5515
Telephone: (505) 325-5049 HOBBS (575) 393-0163
(above calls transfer to Roswell)
Main switchboard (Santa Fe): (505) 827-0700

- 53 -

  ACD--31050                                      New Mexico Taxation and Revenue Department 
  REV. 04-2010                                       P.O Box 5557
                                                  Santa Fe, New Mexico 87502-5557
                                                     www.tax.state.nm.us/ 
                 INSTRUCTIONS FOR NONTAXABLE TRANSACTION CERTIFICATES
REQUIREMENTS: All New Mexico sellers/lessors who wish to execute NTTCs are required to: 1) register with the Taxation and Revenue Department, 2) 
complete the Application for Nontaxable Transaction Certiicates, and 3) be in compliance with the department.  Sellers/lessors are in compliance with the 
Department when: 1) all required returns have been iled: 2) they are not a delinquent taxpayer, and 3) their CRS business registration is complete. 
CAUTION:  Fraudulent statements made to obtain certiicates, or fraudulent use of certiicates received pursuant to this application with intent to evade or 
defeat the tax may subject the person or business to a ine of not more than ten thousand dollars ($10,000) or imprisonment for not more than ive (5) years 
or both. (Sections 7-1-72 NMSA 1978 and 7-1-73 NMSA 1978)  In addition, misuse of these certiicates may result in loss of the privilege to execute NTTCs 
for up to one (1) year. (Section 7-9-43 NMSA 1978)
NTTC DESCRIPTIONS AND AUTHORIZED USES: See reverse for complete descriptions of NTTC types.
  •       Type 2: for tangibles for resale, lease or re-lease, or for purchase by manufacturer
  •       Type 5: for services for resale, for export, or for services performed on manufactured products
  •       Type 6: for construction contractor’s purchase of construction materials and construction services
  •       Type 9: for purchase of tangible personal property by New Mexico or United States governments, 501(c)(3) organization, or credit unions
  •       Type 10: for purchase of tangible personal property or services by a person who holds an interest in a qualiied generating facility 
  •       Type 15: for tangible personal property purchased by qualiied federal contractors
  •       Type 16: for sales of property, services and leases to qualiied ilm production companies, accredited foreign missions, and their accredited 
  •       members
  •       Type OSB NTTCs are issued to registered New Mexico sellers/lessors to execute to Out-of-State Buyers who are not registered with the Depart-
          ment, but who will resell tangible personal property outside of New Mexico
OPTION #1
NTTC-NET:  The Department has developed NTTC-NET, a paperless system on the web, to expedite the processing of Nontaxable Transaction Certiicates 
(NTTCs). The Department encourages all taxpayers to use NTTC-NET to apply for, execute, record, and request additional NTTCs online.  If you know the 
seller’s/lessor’s CRS identiication number to whom you wish to execute a NTTC, you may immediately execute the NTTC online.  When the recipient’s 
CRS identiication number is known, there is no limit to executing NTTCs on NTTC-NET, but you may request up to ive (5) NTTCs to be executed at a 
later date if the seller’s/lessor’s name and CRS identiication number is not known.  You must irst record executed NTTC information before applying for 
additional NTTCs to be executed at a later date.  
For instructions on how to use NTTC-NET, go to www.tax.state.nm.us and click on the NTTC-NET link. The beneits of using NTTC-NET are: 1) NTTCs 
are issued immediately;  2) you can print the NTTCs to your local printer;  3) you do not have to contact the Department to process your order;  4) you can   
request or execute NTTCs twenty-four (24) hours a day, seven (7) days a week, and 5) you do not need to complete the applications below.
OPTION #2
IF YOU DO NOT HAVE ACCESS TO NTTC NET COMPLETE THE APPLICATION FORM BELOW:
HOW TO APPLY OR REORDER:  If you do not yet have the name and CRS identiication number of the vendor to whom you wish to execute the NTTC, 
complete the application below, providing all information requested. Mail the application to the New Mexico Taxation and Revenue Department, P.O. Box 
5557, Santa Fe, New Mexico 87502-5557, or you may deliver it to your local district ofice.
          NOTE: You may reorder additional NTTCs ONLY after your executed NTTCs have been recorded with the Department. To record your executed 
NTTCs, submit the Nontaxable Transaction Certiicate Report or record them online. The Department will only issue a maximum of ive (5) NTTCs to 
be executed at a later date.
                                                      
                 APPLICATION FOR NONTAXABLE TRANSACTION CERTIFICATES
                                                     To be executed at a later date
                                                  (All information below must be completed)
BUSINESS INFORMATION OF APPLICANT                                                      NM CRS IDENTIFICATION NUMBER OF APPLICANT
  
Name:          ______________________________________________________________          0 __ - __  __  __  __  __  __ - 0 0 - __
Mailing
Address:       ______________________________________________________________             New Application                      CONTRACTORS LICENSE                                                                   
                                                                                                                              NUMBER   (if applicable)
City:              _______________________   State:   __________  Zip: ________________   Reorder                         
                                                                                                                            ------  ------  ------  ------  ------  
                                                                                       Type of NTTC           Quantity Requested: 5 combined maximum   
Date:             _______________________   Phone No:   ____________________________
                                                                                                                                (circle number)  

Print Name:  _______________________________________________________________                  ________          1     2               3         4          5
Authorized
Signature:     _______________________________________________________________              ________            1     2               3         4          5   

  New Mexico Taxation and Revenue Department, PO Box 5557, Santa Fe, New Mexico 87502-5557

- 54 -

                                                                                                1
                                     NTTC TYPE DESCRIPTIONS 
TYPE 2	certiicates	may	be	executed:                                                  2)	Construction	services	to	be	performed	on	a	construction	project	that	is	either	
1)	By	manufacturers	for	the	purchase	of	tangible	personal	property	that	will	        subject	to	gross	receipts	tax	upon	completion	or	that	takes	place	on	Indian	tribal	
become	an	ingredient	or	component	of	the	manufactured	product.	(7-9-46)	             territory.	(7-9-52)		Enter	your	contractor’s	license	number	on	the	application	or	
                                                                                                                                     2
2)	For	the	purchase	of	tangible	personal	property	or	licenses	for	resale	either	     submit	proof	that	such	a	number	is	not	required.
alone	or	in	combination	with	other	tangible	personal	property	or	licenses	in	the	            	certiicates	may	be	executed	for	the	purchase	of	tangible	personal	
                                                                                     TYPE 9
ordinary	course	of	business.	(7-9-47)                                                property	only	and	may	not	be	used	for	the	purchase	of	services,	for	the	lease	of	
3)	By	a	lessee	for	the	lease	of	tangible	personal	property	or	licenses	for	subse-    property	or	to	purchase	construction	materials	for	use	in	construction	projects	
quent	lease	in	the	ordinary	course	of	business,	except	for	the	lease	of	furniture	   (except	as	provided	in	#2	below).	The	following	may	execute	Type	9	NTTCs:
or	appliances,	the	receipts	from	the	rental	or	lease	of	which	are	deductible	under	
                                                                                     1)	Governmental	agencies.	(7-9-54)
Subsection	C	of	Section	7-9-53,	the	lease	of	coin-operated	machines,	and	for	        2)		501(c)(3)	organizations.	(7-9-60)	These	organizations	register	with	the	Taxation	
the	purchase	of	manufactured	homes	as	deined	in	Section	7-9-3(G).	(7-9-50)           and	Revenue	Department	and	submit	proof	of	Internal	Revenue	Service	501(c)(3)	
4)	For	the	purchase	of	tangible	personal	property	or	licenses	for	subsequent	lease	  nonproit	determination	before	they	may	execute	Type	9	NTTCs.	Those	501(c)
in	the	ordinary	course	of	business,	except	for	the	lease	of	furniture	or	appliances,	(3)	organizations	that	are	organized	for	the	purpose	of	providing	homeowner-
the	receipts	from	the	rental	or	lease	of	which	are	deductible	under	Subsection	C	
                                                                                     ship	opportunities	to	low-income	families	may	purchase	construction	materials	
of	Section	7-9-53;	the	lease	of	coin-operated	machines,	and	for	the	purchase	of	     incorporated	into	these	construction	projects.	
manufactured	homes	as	deined	in	Section	7-9-3(G).	(7-9-49)                           3)	Federal	or	state-chartered	credit	unions.	(7-9-54	and	7-9-61.2)
5)	By	a	person	who	is	licensed	to	practice	medicine,	osteopathic	medicine,	den-      4)	Indian	tribes,	nations	or	pueblos	when	purchasing	tangible	personal	property	
tistry,	podiatry,	optometry,	chiropractic	or	professional	nursing	for	the	purchase	  for	use	on	Indian	reservations	or	pueblo	grants.	(7-9-54)
of	prosthetic	devices.	(7-9-73)
                                                                                     TYPE 10 certiicates	may	be	executed	by	a	person	that	holds	an	interest	in	
TYPE 5	certiicates	may	be	executed:                                                  a	qualiied	generating	facility	for	the	purchase	of	tangible	personal	property	or	
1)	For	the	purchase	of	services	for	resale	if	the	subsequent	sale	by	the	buyer	      services	that	are	eligible	generation	plant	costs.	In	addition	to	required	reporting	
is	in	the	ordinary	course	of	business	and	the	subsequent	sale	of	the	service	is	     on	the	CRS-1	Form,	sellers	who	accept	this	certiicate	for	a	qualiied	purchase	
subject	to	gross	receipts	tax	or	governmental	gross	receipts	tax.	(7-9-48)           must	also	report	this	deduction	on	form	RPD-41349 Advanced Energy 
2)		For	the	purchase	of	services	for	export	when	sold	to	an	out-of-state	buyer	
                                                                                     Deduction.
and 	delivery	and	initial	use	of	the	product	of	the	service	occurs	outside	New	
Mexico.	(7-9-57)                                                                     TYPE 15	certiicates	may	be	executed	by	qualiied	federal	contractors	on	a	
3)	By	manufacturers	for	the	purchase	of	services	performed	directly	upon	tangible	   contract-by-contract	basis.	A	copy	of	the	federal	contract	is	required.	The	Taxation	
personal	property	they	are	in	the	business	of	manufacturing	or	upon	ingredient	      and	Revenue	Department	may	contact	you	for	additional	information.
or	component	parts	therof.	(7-9-75)                                                  TYPE 16	certiicates	may	be	executed	by:
4)	For	the	purchase	of	aerospace	services	for	resale	if	the	subsequent	sale	by	      1)	Qualiied	ilm	production	companies	to	purchase	property,	lease	property	or	
the	buyer	is	in	the	ordinary	course	of	business	and	the	services	are	sold	to	a	      purchase	services.	A	qualiied	production	company	must	submit	proof	of	registra-
501(c)(3)	organization,	other	than	a	national	laboratory,	or	to	the	United	States	   tion	with	the	New	Mexico	Film	Division	of	the	Economic	Development	Department.	
(7-9-54.1)                                                                           (7-9-86)
TYPE 6	certiicates	may	be	executed	by	a	construction	contractor	to	purchase:         2)	Accredited	diplomats	or	missions	for	the	purchase	of	property	or	services	or	
1)	Construction	materials	that	will	become	ingredients	or	components	of	a	con-       the	leasing	of	property.	(7-9-89)
struction	project	that	is	either	subject	to	gross	receipts	tax	upon	completion	or	   TYPE NTTC-OSB	certiicates	may	be	executed	by	OUT-OF-STATE	BUYERS	
that	takes	place	on	Indian	tribal	territory.	(7-9-51)	Enter	your	contractor’s        for	the	purchase	of	tangible	personal	property	that	will	be	resold	or	become	an	
license	number	on	the	application	or	submit	proof	that	such	a	number	is	not	         ingredient	or	component	of	a	manufactured	product,	or	for	services	performed	
required.2
                                                                                     on	a	manufactured	product.		Type NTTC-OSBs must be obtained by 
                                                                                     the seller.
1	Type	2,	5	and	6	certiicates	are	also	optional	forms	of	documentation	for	other	gross	receipts	tax	deductions.	For	more	information	on	the	use	of	different	types	of	NTTCs	please	see	
  publication	FYI-204:	Nontaxable	Transaction	Certiicates	online	at	http://www.tax.state.nm.us/trd_pubs.htm	or	request	it	from	your	local	district	tax	ofice.
2	Proof	that	a	construction	contractor's	license	is	not	required	includes	a	detailed	written	statement	explaining	the	circumstances	that	exclude	the	contractor	from	the	jurisdiction	or	ap-
  plication	of	New	Mexico	statutes	which	provide	for	construction	contractor's	licensing	and	regulation	of	construction	activity.

- 55 -

ACD 31098                                                  New Mexico Taxation and Revenue Department 
INT. 04/05
                                                                    P.O Box 5557
                                                            Santa Fe, New Mexico 87502-5557
                                                                 www.tax.state.nm.us/
                                          NONTAXABLE TRANSACTION CERTIFICATE REPORT
NTTC NET:       The department has developed NTTC-NET, a paperless system online, to expedite the processing of Nontaxable Transaction Cer-
tiicates (NTTC). The department encourages all taxpayers to use NTTC-NET to apply for, execute, record, and request additional NTTCs online 
at www.tax.state.nm.us.  
IF YOU DO NOT HAVE ACCESS TO NTTC NET:  Complete this report and mail to the address above. 
        NOTE: You may reorder additional NTTCs              ONLY after your executed NTTCs have been recorded with the department. To record your 
executed NTTCs, submit the Nontaxable Transaction Certiicate Report or record them online.

EXECUTED BY:                                              (Your business information)
Your NM CRSID#:                                                 Telephone:                                                                                                                                                               Contact Person: 
                            ___________________________                          ________________            (please print) ______________________________ 
________________________________________________________________________________________________________________________ 
                                          Buyer/Lesse Name       
   _____________________________________________  _______________________________  ___________  ____________  _______________  
                                  Address                                                                                 City                                                                                                                                      State  Country                     Zip 
                                  
EXECUTED TO:                                                     (Complete all ields below) 
Certiicate                                                                            Seller/Lessor 
    Number:   __-__ __ __ __ __ __ __-__ __-__ __ __ __ __                                                                                                         Name:                                                         ________________________________________________________ 
               Date Executed:       ___ ___ / ___ ___ / ___ ___ ___ ___            Address:  _____________________________________ 
Seller/Lessor New Mexico 
                          CRS ID#:  0___-___ ___ ___ ___ ___ ___-00-___               City:    __________________________________      State:  ______________    
                FEIN / SSN / ID:
    (only if Seller/Lessor Out-of-State)  ______________________________________________                                                                                                                           Country:  __________________________________       Zip:  ______________  

Certiicate                                                                            Seller/Lessor 
    Number:   __-__ __ __ __ __ __ __-__ __-__ __ __ __ __                                                                                                         Name:                                                         ________________________________________________________ 
               Date Executed:       ___ ___ / ___ ___ / ___ ___ ___ ___            Address:  _____________________________________ 
Seller/Lessor New Mexico 
                          CRS ID#:  0___-___ ___ ___ ___ ___ ___-00-___               City:    __________________________________      State:  ______________    
                FEIN / SSN / ID:
    (only if Seller/Lessor Out-of-State)  ______________________________________________                                                                                                                           Country:  __________________________________       Zip:  ______________  

Certiicate                                                                            Seller/Lessor 
    Number:   __-__ __ __ __ __ __ __-__ __-__ __ __ __ __                                                                                                         Name:                                                         ________________________________________________________ 
               Date Executed:       ___ ___ / ___ ___ / ___ ___ ___ ___            Address:  _____________________________________ 
Seller/Lessor New Mexico 
                          CRS ID#:  0___-___ ___ ___ ___ ___ ___-00-___               City:    __________________________________      State:  ______________    
                FEIN / SSN / ID:
    (only if Seller/Lessor Out-of-State)  ______________________________________________                                                                                                                           Country:  __________________________________       Zip:  ______________  

Certiicate                                                                            Seller/Lessor 
                 __-__ __ __ __ __ __ __-__ __-__ __ __ __ __ 
    Number:                                                                                                                                                        Name:                                                         ________________________________________________________ 
               Date Executed:       ___ ___ / ___ ___ / ___ ___ ___ ___            Address:  _____________________________________ 
Seller/Lessor New Mexico 
                          CRS ID#:  0___-___ ___ ___ ___ ___ ___-00-___               City:    __________________________________      State:  ______________    
                FEIN / SSN / ID:
    (only if Seller/Lessor Out-of-State)  ______________________________________________                                                                                                                           Country:  __________________________________       Zip:  ______________  

Certiicate                                                                            Seller/Lessor 
    Number:   __-__ __ __ __ __ __ __-__ __-__ __ __ __ __                                                                                                         Name:                                                         ________________________________________________________ 
               Date Executed:       ___ ___ / ___ ___ / ___ ___ ___ ___            Address:  _____________________________________ 
Seller/Lessor New Mexico 
                          CRS ID#:  0___-___ ___ ___ ___ ___ ___-00-___               City:    __________________________________      State:  ______________    
                FEIN / SSN / ID:
    (only if Seller/Lessor                                                                                                                          Out-of-State)  ______________________________________________                Country:   ___________________________________      Zip: ______________

PDF file checksum: 794856466