New Mexico Code § 7-9-52.1

Deduction; gross receipts tax; lease of construction equipment to persons engaged in the construction business
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A. Receipts from leasing construction equipment may be deducted from gross receipts if the construction equipment is leased to a person engaged in the construction business who delivers a nontaxable transaction certificate to the person leasing the construction equipment or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978.
B. The lessee shall only use the construction equipment at the construction location of:
(1) a construction project that is subject to the gross receipts tax upon its completion or upon the completion of the overall construction project of which it is a part;
(2) a construction project that is subject to the gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed; or
(3) a construction project that is located on the tribal territory of an Indian nation, tribe or pueblo.
C. As used in this section, "construction equipment" means equipment used on a construction project, including trash containers, portable toilets, scaffolding and temporary fencing.
History: Laws 2012, ch. 5, § 6; 2021, ch. 65, § 20.
The 2021 amendment, effective July 1, 2021, provided that a taxpayer may provide the taxation and revenue department alternative evidence to claim a gross receipts tax deduction in lieu of providing a non-taxable transaction certificate; in Subsection A, after "construction equipment", added "or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978", and in Subsection B, after "lessee", deleted "delivering the nontaxable transaction certificate".

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