2019 New Mexico Statutes
Chapter 7 - Taxation
Article 9 - Gross Receipts and Compensating Tax
Section 7-9-54.1 - Deduction; gross receipts from sale of aerospace services to certain organizations.
A. As used in this section:
(1) "aerospace services" means research and development services sold to or for resale to an organization for resale by the organization to the United States air force; and
(2) "organization" means an organization described in Subsection A of Section 7-9-29 NMSA 1978 other than a prime contractor operating facilities in New Mexico designated as a national laboratory by act of congress.
B. Receipts from performing or selling, on or after October 1, 1995, an aerospace service for resale may be deducted from gross receipts if the sale is made to a buyer who delivers a nontaxable transaction certificate. The buyer delivering the nontaxable transaction certificate shall separately state the value of the aerospace service purchased in the buyer's charge for the aerospace service on its subsequent sale to an organization or, if the buyer is an organization, on the organization's subsequent sale to the United States, and the subsequent sale shall be in the ordinary course of business of selling aerospace services to an organization or to the United States.
C. A percentage of the receipts from selling aerospace services to or for resale to an organization may be deducted from gross receipts in accordance with the following table:
| Deductible | ||
| Receipts During the Period | Percentage | |
| October 1, 1995 through September 30, 1996 | 10% | |
| October 1, 1996 through September 30, 1997 | 25% | |
| October 1, 1997 through September 30, 1999 | 50% | |
| October 1, 1999 and thereafter | 100%. |
History: Laws 1992, ch. 40, § 1; 1993, ch. 310, § 1; 1994, ch. 45, § 5; 1995, ch. 183, § 1.
ANNOTATIONSCross references. — For Spaceport Development Act, see 58-31-1 NMSA 1978 et seq.
Compiler's notes. — Laws 1992, ch. 40, § 4, as amended by Laws 1993, ch. 310, § 2, provided that the effective date of the provisions of 7-9-54.1 NMSA 1978 was October 1, 1995. Laws 1994, ch. 45, § 8 repealed Laws 1992, ch. 40, § 4 and Laws 1993, ch. 310, § 2.
Laws 1993, ch. 31, § 13D and Laws 1993, ch. 310, § 3, repealed Laws 1992, ch. 40, § 3, which provided for the repeal of ch. 40 of Laws 1993 on August 1, 1995, if the United States has not announced prior to July 1, 1995, that the space systems division of the department of the air force will be relocated to New Mexico.
The 1995 amendment, effective July 1, 1995, rewrote Subsection A, inserted "if the buyer is an organization, on the organization's subsequent sale" in Subsection B, and substituted "or for resale to an organization" for "the United States or any agency or instrumentality thereof" in Subsection C.
The 1994 amendment, effective July 1, 1994, substituted "sold to or for resale to" for "performed or sold by" in Subparagraph A(1)(a) and inserted "performing or" in the first sentence in Subsection B.
The 1993 amendment, effective July 1, 1993, rewrote this section to the extent that a detailed comparison is impracticable.
