N.M. Admin. Code § 3.2.238.8

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

Section 3.2.238.8 - AUTOMOBILE LEASING

The value of tires, engine repair parts and similar items used by a lessor in the maintenance of vehicles held for lease or already leased may be deducted in computing compensating tax if the following three conditions are met:

A. the parts are used by the lessor on vehicles held for lease or already leased and the receipts from leasing or selling vehicles are a substantial portion of the receipts;

B. the maintenance of the vehicles is performed at no additional cost to the lessee under the lease agreement; and

C. the lessor does not use the vehicles or parts in any manner other than holding them for lease or sale or leasing or selling them either by themselves or in combination with other tangible personal property in the ordinary course of business.

N.M. Admin. Code § 3.2.238.8

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; 3.2.238.8 NMAC - Rn, 3 NMAC 2.78.8, 6/14/01