N.M. Code R. § 3.2.116.12

Current through Register Vol. 35, No. 16, August 27, 2024

Section 3.2.116.12 - EXECUTORS' AND ADMINISTRATORS' FEES

A. The receipts of any person appointed as administrator or executor of an estate are subject to the gross receipts tax and are not exempt from the gross receipts tax pursuant to Section 7-9-28 NMSA 1978. The duration of the person's activity in performing the service, usually a minimum of eight (8) months, indicates that the person is regularly engaged in the business of selling services as an executor or administrator.

B. Where an administrator or executor effectively waives the right to receive statutory fees or commissions within a reasonable time after commencing to serve as the executor and all other actions by that person with respect to the estate are consistent with the intention to render a gratuitous service, the administrator or executor is not subject to the gross receipts tax on the value of the services rendered.

C. Example: E, an individual appointed executor of an estate by a court order, performs the duties of executor for a period of approximately eight (8) months. E is not otherwise engaged in the business of performing services as an executor or fiduciary and is not an attorney or certified public accountant or anyone who customarily receives fees for the performance of professional services. E is not an employee of a bank, trust department, or financial institution. Receipts of E are subject to the gross receipts tax because the duration of E's activity in performing the service indicates that E is regularly in the business of selling services as an executor.

N.M. Code R. § 3.2.116.12

3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.116.12 NMAC - Rn, 3 NMAC 2.28.12 & A, 5/15/01