2019 New Mexico Statutes
Chapter 7 - Taxation
Article 9 - Gross Receipts and Compensating Tax
Section 7-9-62 - Deduction; gross receipts tax; agricultural implements; aircraft manufacturers; vehicles that are not required to be registered; aircraft parts and maintenance services; reporting requirements.
A. Except for receipts deductible under Subsection B of this section, fifty percent of the receipts from selling agricultural implements, farm tractors, aircraft or vehicles that are not required to be registered under the Motor Vehicle Code [Chapter 66, Articles 1 to 8 NMSA 1978] may be deducted from gross receipts; provided that, with respect to agricultural implements, the sale is made to a person who states in writing that the person is regularly engaged in the business of farming or ranching. Any deduction allowed under Section 7-9-71 NMSA 1978 must be taken before the deduction allowed by this subsection is computed.
B. Receipts of an aircraft manufacturer or affiliate from selling aircraft or from selling aircraft flight support, pilot training or maintenance training services may be deducted from gross receipts. Any deduction allowed under Section 7-9-71 NMSA 1978 must be taken before the deduction allowed by this subsection is computed.
C. Receipts from selling aircraft parts or maintenance services for aircraft or aircraft parts may be deducted from gross receipts. Any deduction allowed under Section 7-9-71 NMSA 1978 must be taken before the deduction allowed by this subsection is computed.
D. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.
E. The department shall compile an annual report on the deductions provided by this section that shall include the number of taxpayers approved by the department to receive the deductions, the aggregate amount of deductions approved and any other information necessary to evaluate the effectiveness of the deductions. Beginning in 2019 and every five years thereafter that the deductions are in effect, the department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the deductions.
F. As used in this section:
(1) "affiliate" means a business entity that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with the aircraft manufacturer;
(2) "agricultural implement" means a tool, utensil or instrument that is depreciable for federal income tax purposes and that is:
(a) designed to irrigate agricultural crops above ground or below ground at the place where the crop is grown; or
(b) designed primarily for use with a source of motive power, such as a tractor, in planting, growing, cultivating, harvesting or processing agricultural crops at the place where the crop is grown; in raising poultry or livestock; or in obtaining or processing food or fiber, such as eggs, milk, wool or mohair, from living poultry or livestock at the place where the poultry or livestock are kept for this purpose;
(3) "aircraft manufacturer" means a business entity that in the ordinary course of business designs and builds private or commercial aircraft certified by the federal aviation administration;
(4) "business entity" means a corporation, limited liability company, partnership, limited partnership, limited liability partnership or real estate investment trust, but does not mean an individual or a joint venture;
(5) "control" means equity ownership in a business entity that:
(a) represents at least fifty percent of the total voting power of that business entity; and
(b) has a value equal to at least fifty percent of the total equity of that business entity; and
(6) "flight support" means providing navigation data, charts, weather information, online maintenance records and other aircraft or flight-related information and the software needed to access the information.
History: 1953 Comp., § 72-16A-14.17, enacted by Laws 1969, ch. 144, § 52; 1975, ch. 159, § 1; 1998, ch. 89, § 5; 2000 (2nd S.S.), ch. 4, § 1; 2007, ch. 172, § 7; 2014, ch. 19, § 1.
ANNOTATIONSThe 2014 amendment, effective July 1, 2014, provided for a deduction from gross receipts for selling aircraft parts or maintenance services; in the catchline, after "registered", added "aircraft parts and maintenance services; reporting requirements"; in Subsection B, in the first sentence, after "selling aircraft", deleted "or aircraft parts or from selling services performed on aircraft or aircraft components"; added Subsections C, D and E; and in Subsection F, Paragraph (2), after "instrument that is" added "depreciable for federal income tax purposes and that is" and deleted Subparagraph (c) which read "and depreciable for federal income tax purposes".
The 2007 amendment, effective July 1, 2007, included receipts from the sale of aircraft parts and services and added Paragraphs (1), Subparagraph (a) of Paragraph (2) and Paragraphs (3) through (6) of Subsection C.
The 2000 amendment, effective July 1, 2000, inserted "Except for receipts deductible under Subsection B of this section" at the beginning of Subsection A, added a new Subsection B, and redesignated the former Subsection B as Subsection C.
The 1998 amendment, effective July 1, 1998, designated the existing material as Subsection A, added the proviso at the end of the first sentence and substituted "7-9-71 NMSA 1978" for "72-16A-14.28 NMSA 1978" in the second sentence; and added Subsection B.
Lease-purchase transaction. — Lease agreement providing that upon full payment of rentals lessee would become owner of equipment in question constituted a sale with reservation of security interest, for which seller-secured party was to pay gross receipts tax at the rate specified for transactions covering vehicles not registered under the Motor Vehicle Code. Rust Tractor Co. v. Bureau of Revenue, 1970-NMCA-107, 82 N.M. 82, 475 P.2d 779, cert. denied, 82 N.M. 81, 475 P.2d 778.
