N.M. Admin. Code § 3.2.238.9

Current through Register Vol. 35, No. 24, December 23, 2024

Section 3.2.238.9 - GENERAL EXAMPLES

The following examples illustrate the application of Section 7-9-78 NMSA 1978:

A. Example 1: E, a New Mexico corporation, is solely engaged in the business of leasing electric typewriters to business establishments in New Mexico. E purchases a typewriter in Texas to hold for lease in the ordinary course of its business. E does not use the typewriter in any other manner. E may deduct the value of the typewriter in computing its compensating tax due.

B. Example 2: E, a Colorado company, buys stoves from Z, a Colorado company. E initially uses the stoves in its business in Colorado but later converts their use solely to leasing. E then brings the stoves into New Mexico for purposes of leasing. E is not liable for the compensating tax if the stoves are leased to restaurants. If E brings the stoves into New Mexico to be furnished as part of a leased dwelling house of which E is the lessor, E is liable for the compensating tax.

N.M. Admin. Code § 3.2.238.9

12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.238.9 NMAC - Rn, 3 NMAC 2.78.9 & A, 6/14/01