N.M. Admin. Code § 3.2.213.9

Current through Register Vol. 35, No. 23, December 10, 2024

Section 3.2.213.9 - BROADCASTING AND RELATED ADVERTISING

A.Microwave carriers: The receipts of a microwave carrier from relaying television signals for another party for a fee from a point of origin outside this state to a point of destination within this state may be deducted from gross receipts even though a portion of those receipts is derived from relaying the signals between towers located within New Mexico.

B.Deduction available to broadcaster and advertising agency: A New Mexico radio or television broadcaster may deduct from its gross receipts the receipts derived from the sale of broadcast time which is sold either directly to a national or regional seller or advertiser not having its principal place of business in or being incorporated under the laws of New Mexico, or to an advertising agency which purchases the broadcast time on behalf of, or for subsequent sale to, such national or regional seller or advertiser. No nontaxable transaction certificate is required. If the advertising agency subsequently sells the broadcast time to a New Mexico seller or advertiser, however, compensating tax will be due on the value of the broadcast time.

C.Sales of broadcast time: Receipts from sales of broadcast time by New Mexico radio and television broadcasters to advertising agencies are subject to gross receipts tax, but may be deductible under Section 7-9-48 NMSA 1978 or Section 7-9-55 NMSA 1978.

D.Cable television systems: Cable television systems are eligible for the deduction provided by Section 7-9-55 NMSA 1978 for receipts from the sale of broadcast time to a national or regional advertiser.

E.Digital advertising services: Providers of digital advertising services are eligible for the deduction provided by Section 7-9-55 NMSA 1978. Receipts of a provider of digital advertising services are deductible when the receipts:

(1) are from a national or regional advertiser not having its principal place of business in New Mexico, or that is not incorporated under the laws of New Mexico, or

(2) are from an advertising agency which purchases the display of advertisements on the platform on behalf of, or for subsequent sale to, a seller defined in Paragraph (1) of Subsection E of 3.2.213.9NMAC. However, the commissions of advertising agencies from performing services in this state may not be deducted.

N.M. Admin. Code § 3.2.213.9

12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 3/3/86, 4/2/86, 11/26/90, 9/20/93, 11/15/96; 3.2.213.9 NMAC - Rn, 3 NMAC 2.55.9 & A, 5/31/01; A, 9/30/04, Adopted by New Mexico Register, Volume XXXIII, Issue 22, November 29, 2022, eff. 11/29/2022