2019 New Mexico Statutes
Chapter 7 - Taxation
Article 9 - Gross Receipts and Compensating Tax
Section 7-9-45 - Deductions.

A. Receipts may only be deducted once from gross receipts or governmental gross receipts when computing the gross receipts tax or governmental gross receipts tax due.

B. The same receipts shall not be both exempt from the gross receipts tax and deducted from gross receipts.

C. The same receipts shall not be both exempt from the governmental gross receipts tax and deducted from governmental gross receipts.

History: 1978 Comp., § 7-9-45, enacted by Laws 1969, ch. 144, § 35; 1970, ch. 77, § 1; 1970, ch. 78, § 1; 1971, ch. 217, § 1; 1972, ch. 39, § 1; 1977, ch. 288, § 1; 1979, ch. 338, § 2; 1984, ch. 129, § 1; 1989, ch. 262, § 5; 1994, ch. 45, § 3; 1995, ch. 70, § 5; 1999, ch. 231, § 2; 2017 (1st S.S.), ch. 3, § 16.

The 2017 (1st S.S.) amendment, effective July 1, 2017, clarified that certain receipts may only be deducted once from gross receipts or governmental gross receipts when computing the gross receipts tax or governmental gross receipts tax due; in Subsection A, deleted "In computing the gross receipts tax or governmental gross receipts tax due, only those receipts specified in Sections 7-9-46 through 7-9-76.2, 7-9-77.1, 7-9-83, 7-9-85 through 7-9-87 and 7-9-89 NMSA 1978 may be deducted. Receipts, whether specified once or several times in those sections, may be deducted only once from gross receipts or governmental gross" and after "Receipts", added "may only be deducted once from gross receipts or governmental gross receipts when computing the gross receipts tax or governmental gross receipts tax due"; in Subsection B, added "The same", after the first occurrence of "receipts", deleted "that are exempted from the gross receipts tax may" and added "shall", after "not be", added "both exempt from the gross receipts tax and", and deleted the last sentence, which provided "Receipts that are deducted from gross receipts may not be exempted from the gross receipts tax."; and in Subsection C, added "The same", after the first occurrence of "receipts", deleted "that are exempted from the governmental gross receipts tax", after "shall not be", added "both exempt from the governmental gross receipts tax and", and deleted the last sentence, which provided "Receipts that are deducted from governmental gross receipts shall not be exempted from the governmental gross receipts tax.".

The 1999 amendment, effective July 1, 1999, in Subsection A, substituted "Sections 7-9-46 through 7-9-76.2, 7-9-77.1, 7-9-83, 7-9-85 through 7-9-87 and 7-9-89 NMSA 1978 may be deducted" for "Sections 7-9-46 through 7-9-76.2, and 7-9-83, through 7-9-85 NMSA 1978 may be deducted" in the first sentence, and substituted "several times in those sections" for "several times in Sections 7-9-46 through 7-9-76.2 and 7-9-83 through 7-9-85 NMSA 1978" in the second sentence.

The 1995 amendment, effective July 1, 1995, substituted "and 7-9-83 through 7-9-85" for "7-9-83 and 7-9-84" in the first and second sentences of Subsection A.

The 1994 amendment, effective July 1, 1994, designated the previously undesignated first two sentences as Subsection A and the previously undesignated last sentence as Subsection B; in Subsection A, inserted "or governmental gross receipts tax" in the first sentence and "7-9-83 and 7-9-84" in both sentences, and added "or governmental gross receipts" at the end of the second sentence; and added Subsection C.

The 1989 amendment, effective July 1, 1989, added the third and fourth sentences.

Deductions or exemptions from a tax must be strictly construed in favor of the taxing authority, must be clearly and unambiguously expressed in the statute, and must be clearly established by the taxpayer claiming the right thereto. Chavez v. Commissioner of Revenue, 1970-NMCA-116, 82 N.M. 97, 476 P.2d 67.

Tax statute must also be given fair, unbiased and reasonable construction, without favor or prejudice to either the taxpayer or the state, to the end that the legislative intent is effectuated and the public interests to be subserved thereby are furthered. Chavez v. Commissioner of Revenue, 1970-NMCA-116, 82 N.M. 97, 476 P.2d 67.

Deductions narrowly but reasonably construed. — If a tax is clearly applicable, except for a statutory exemption, exception or deduction therefrom, the provision for the exemption, exception or deduction must be narrowly but reasonably construed. Chavez v. Commissioner of Revenue, 1970-NMCA-116, 82 N.M. 97, 476 P.2d 67.