N.M. Admin. Code § 3.2.10.15
Current through Register Vol. 35, No. 21, November 5, 2024
Section 3.2.10.15 - MATERIALS USED ON NONTAXABLE PROJECTSA. Construction materials purchased with a nontaxable transaction certificate and subsequently used in a project, other than a project located on tribal territory the state taxation of which is pre-empted by federal law, which upon completion is not subject to gross receipts tax are subject to the compensating tax for the value of materials used in the project.B. Example: X construction company purchases a truckload of lumber from A lumber company with whom X has previously executed the appropriate nontaxable transaction certificate. X takes delivery of, and title to, the lumber at A's yard in New Mexico. X then transports the lumber by its own vehicle to a location outside New Mexico and incorporates the lumber into a construction project outside New Mexico. X is subject to the compensating tax on the value of the lumber purchased from A lumber company since the construction project outside New Mexico is not subject to gross receipts tax upon completion.N.M. Admin. Code § 3.2.10.15
1/26/86, 2/21/86, 4/2/86, 11/26/90, 11/15/96, 3.2.10.15 Rn & A, 3 NMAC 2.7.15, 10/31/00; A, 8/15/12