637 TOWN OF TAOS
dRDIPdANCES
YEAR:
0
NUMBER: 637
I
4 �
ORDINANCE NO, 637
Ali O71)I:?%\'1Ci, r✓;.'t'.0"'I'I) PUPc;WIT TO C:IIM17.'I:i'. 16 (S .S. ) OP
'':11L L? -,S OF 1975 IMPOSTIM, it t4I:'IIC:IP'\I, GROSS RI-CF.IPTS TAX
LE IT ORDAI-,ED 13Y TIM. n0%rr.l'II�IG BODY Or
J TOWN OF TAOS THAT:
I Section 1. MI LE. --
This ordinance nay be cited as the "
Municinal Cross Receipts Ta Ordinance . "
Section 2. MCLnP?1TI01! OF INT17*T Akin PURPOSE. —
Pursuant to the Municipal Cross Ileceints Tax Act (Chanter
1(-,* (S .S . ) of the I,aws of 1975) which authorizes municinalities
to enact a nunicinal dross rcceints tax, it is Iterebv doclareO.
the Durpose and intent of the Roverning body of
to so enact an ordinance i:nnosing a dross
recein`s tw, of one-fourth ( 1/4) of one per cant (1�-) in
ri 1 r ss n n m-� n a
� co.,,nl:..�,r.cc c�itiZ the iIunici?._.1 ro�� �.c�c,.ipts _ua Act. I ,. is
further declared the nurnoso and intent of t'lis ordinance to
c0,` Forr- t0 the 0cfinitlons an' applicable dross receipts ta::
?:rovisio.is of the :Iew ."Icxico Gross Receipts and Compensating
i
'La Act an(I any irterprctation of this ordinance should he
1Z: c0:'?lormi with the c nolic-;'?1L snctlon s of the Gross -'Cc,2i nt's
d and !'n,, reps tir,n ".'a:: Act.
i n tier: TOWN OF TAOS
:•Iuni.ci-)a1 Gtocs Pccr2i�)ts Ta:: Ordinance ;
?:. ":Jurcau" means tilt :Jow I:e::ico bureau of revenue, the
coTM�,~�i�sio"cr of rep►can.,., or any, onnl.ovee of the bureau exercising .
authority lawfully delegated to him by the commissioner;
B. "buying" or "selling" means any transfer of property
for consideration or any performance of service for consideration;
C. "construction" means building, altering, repairing
or demolishing in the ordinary course of business any:
(1) road, highway, bridge, par'-ing area or related
project;
(2) building, stadium or other structure;
(3) airport, subway or similar facility;
(4 ) par}: , trail, athletic field, golf course or
si:ni?nr facility;
(S) cram, reservoir. , canal, ditch or similar facility;
(G) son.-cracic or o:at-r treatment facility, power
ooncratinr-: nlant, purity station , natural gas cor.pressinct station
or similar facility;
(7) sewerage, water, Ras or other pipeline;
(3) transmission line ;
(9) radio or other tower;
(10) crater, oil or other storage tank;
(11 ) shaft , tunnel or other mining appurtenance; or
(12) similar work ;
"construction" also means:
(13) levelinn or clearing land;
(14) excavating earth;
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(15) c,ri lli nr- :�l :s of any>� t•�-�e, i.nclurlinr, sci.sroaranh
shot holes or core drilling ; or
(10) sir..ilar worn ;
U. " financial corporation" means any savings and loan
association, or any incorno.rated savings and loan company, trust
company, mortgage banking company, consumer finance company or
other financial corporation;
E. "engaainq in business" means carrying on or causing
to be carried on any activity with the purpose of direct or
indirect benefit;
F. "dross receipts" -.cans the total amount of money or
t e va.'•.un of other consideration , received from selling nronerty,
frcr I--is.inr. or F:--,T ner`nrm n'1 services, and includes
an,.., r,�cnints `rom sal- s of tangihlc� p^rs,nnnl nroncrty handled
on consi„r.:rnrt Sul cash allowed and taken,
=-Io::i ro cYros r:2c. nts ':,i%: �`•a} .lr� on transactions the
t ,-�i Lions Lor t.i
re--)orti-r ncrio(: and taxes imilose6 Pursuant to the provisions
of t;,c Count" �.'ax 'lct, tine County Cross :'.eceintS Tax Act,
or ti;c 'unici-)nl :,Voss Pec„�i-)ts Tax Act which are payable on
transactions foi t;:e reportinq period and any type of time-price
C12Frern::ti?1.
in an e.xc::anc;e in whicri the money or other consideration
rcceivec, does not represent the value of the property or
scrvicc exchanged , "cross receipts” means the reasonable value
of the -property or service e:{changed.
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;y1'Ii servic(- i`i made un!:^r any
t`%rJQ.. Of ch-ArcTC , COnOit-ional or tine sale, contract Or the leas-
ing of pro-)ert,v is mace uncler a leasincr contract, the seller
or lessor ma.v elect to treat all receipts , excludinq any type
of ti:ic-price differential , under such contracts as cross
receipts as and when the pavmcnts are actually received. If
the seller or lessor transfers his interest in any such contract
to a third :person , he shall nay the gross receipts ta:: upon the
`' 11 sale or leasing contract amount , excludincr any t-�pe of
tine-price (liff.erential.
"moan reccint s , " for the nurnosos of the business of buvi.na,
3:�1iin- or prnmotinq tl,.o purcli-sn , sale or leasing, as factor,
" 7cnt o)- :r�::'r, On "1 ';71'.i"l. ;_,i-,:. or fc(c .:nSis , of in, pronert'J ,
'rviC ' , :stn^'' , :)on(1 nT :,^'"_12"1`:" :.ncl,v c, nnl,�' th.:� total. co:'mis-
Ji_ons or t':.:i dcrlwi(s 'Irror' �..1� ;:_ :i1nCa:i •
n "
or nrocessincT components
cr ratcri_31:; to incroase their value for sale in the ordinary
courso of '.r;s fines r. but do-s not include construction;
( : ) an,: in(livic;ual , ^state, trust, receiver, co-
1'3OC.iatinn, C1,1:), car: oration , co'*oany, firr^., partner-
joint _::nture , s'.nc?icato or other c"itity, including any
r,•?s , t';ator or eloctrlc Utility v..-ned or onnrated by a county,
nunicinalit:' or other- political subdivision of the state; or
(1) tine united States or any agency or instrumentality
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or can-, poll`.Lcal sul)(1-i",ri lion
thereof;
I . "nroner.ty" means real nroperty, tangible personal
property , licenses , franchises , Patents , trademarks and copy-
riahts . Tangible personal proper.ty includes electricity;
J. "lcasi.nq" means any arrangement whereby, for a consi-
deration , property is employed for or by any person other than
the owner of the }property;
K. "service" means all activities engaged in for other
persons for a consideration , which activities involve primarily
th-, ncrf.ormince of a service as distMnquished from selling
lnc,I u(!(?s con7tr'.rtion activltins a,'I all tangible
1
ncrsonil -)rn-i rt• that an ingredient or cor^nonent
n1r.t of ra con.,;tru, `lion nroj,:-ct. sales of ttnaible
)ersonal nr•-)-)r-rty iat will. hecomtc at1 inarodient or component
part- of a constr.urtion nroj^ct to persons engaged in the construc-
tion Ib; :-,in(!ss arc sales of tanoihle nersonal pr_onerty;
1., "usn-" or "usinr." includes i_iso , consumption or storage
other t:itzn storivre for sul:)se,-ruent sale in the ordinary course
of business or for use solrily outside this state;
:I. llmunicinali.ty" means thy_
i
12AOS and
N. 11municipa1 gross receipts tax" means the municipal
gross receipts ta:: imposed by the
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,Iun. !CL•?cnl_ P.-ro s." r'CCCint `1 "ax Ordinance.
section 4 . I;1PnSITIn'1 n!, OP
�.. ^here is her.ehv irmnosod on any Person engaaina in
business in the municipality for the privilege of enclactinq in
business in the municipality an excise tax to be referred to as
the "municipal gross receipts tax. " The rate of the tax shall
be equal to 1/4 of 1 per cent of the gross receipts of the
person engaaina in business .
B. To prevent evasion of the municipal gross receipts tax
and to aid in its administration, it is presumed that all
reecirts of a o,:�rson encaacrina in business within the r*.iunieinalittr
are 3'.11joc:t tc ^,"nici-nl C7rO7,S rccoint `.a%.
cti l:. i . rw nsj•2 r)T7 riT,,nC!'T:Ps. --
`.11 r;:•^:: ..^s c;i.strihut^(I to the launi.cinality av t1lt? bureau
oursua:zt `_o t'.:^ nrovi.-,ions of t;)(-- "unicinal Gross neceints Tai:
'pct sisal '_ :-ia denositcd into the general fund of the mun.ici.nZlity.
Section 6 . S7n1% '."r"r-'T,V Slr7\1_'I'IG TI!r III 1ICIPAY, CpnF;S r.£'C'I'I'PTS
r�w
.,::en ttic municipal dross receipts tax is stated separately
o:-i t:. Lo-) -s of th(i seller or lessor, and if- the total amount
of to:: that is st:-!t^.(i senarately on transactions rennrtrnl)lt-
wit:lin one renortinn nr_rioc', is in excess of the amount of
municinal gross receipts tax otheniise payable on the trans-
actions on which the tax Baas stated sr_narately, the excess
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f
t
�^ tie(! tY.1;. within that rrnortinc,
perioc? shall he included in gross receipts.
Section 7. DA T, PTY'r;::'111 1)[.'1:.--
'"ho tares imnoseO by this ordinance are to be paid on or
before the twenty-fifth day of the morith following the month
in which the taxable event occurs or as otherwise authorized
by the bureau.
Section 8. EXEMPTIn:IS. --
A. No m..unici.nal cTross receipts tax shall be imposed on
the dross receipts arising from:
(1 ) the transmission of r:(--,ssages by wire or other
r..oans from one point wit:,,-in thn riunicipality to another point
ol.itsid,.i of tau rvinicinalit,,
(2 ) `?'cZ:-sno r`-i nr nc r sans or nronerty for hlrn b-
railr i- ., rro~nr '.'.'ii1C 1 ' � .iir t~ansnortation or anv other Titans
from onrr Mint: i7i t hi r. t:ic -11inic1 :)alit'.' to anot'. nr point outside
the municinalit1 .
L' . *:-nrin, tet.I from thr� riunicina l dross receipts tax are
those recei-)t:. in naranrar)hs (1) throucTh (23) of
tiIis sabsec:tion, of section 8 of the Municipal Gross Peceints
( 1) Covernmental aqencies--Exempted from the rnunici nal
gross receipts tax are the receipts of the United States or any
agency or instrumentality thereof or the state of ;Iew Mexico
or an,,, political subdivisiori thereof. .
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fro-,, t'io sale of r•,:a5 , mater or elcctricity
by a utility owned or operated by a county, municipality or
other political subdivisions of the state are not exempted
from tho municipal dross receipts tai:.
(2) Certain nonprofit facilities.--Exempted from
the municipal gross receipts tax are the receipts of nonprofit
entities from the operation of facilities designed and used for
providing accor-modations for retired elderly persons.
(3) Waaes .--Exempted from the municipal gross receipts
tar: arc the receipts of empl.oyces from wages , salaries , commis-
sions or fro:i any* other form of remuneration for personal
scrvic' S .
��rocltict:3 --I:::erj* CC1 from ti:^ rtunici-
i
Pa! ri2ce i z, tax arr" t'ie r,-cC:l '14s of aro!•'ors , producer- ,
tranncr.:s or non-rc `i.t marl'.etinr+ associations from selli"CT
� l.iv
e-
J to C�., I � �O �O tl l -•• , ln�i �� !i�;se(l a ?r icultural products , iiic' s
or pelt: . Persons engagc:cl in the bu:3iness of buyinct anc' selling
wool or mohair or of ijuyinrt and selli°nq livestock on their
accotint arc nro,ucors for c:lic purposo s of this sec`.ior. .
::cceints from sQ_lincl dairy oroc'.ucts at retail ars--
not fro7, t`i^ munic-final cross rnceints ta::.
( 5) Livc,toc'' from the municinal
cross receipts ;;a:: are the receipts of any person derived' from
feeding or pasturing livestock.
Receipts derived from penning or handling livestoc%
-8-
r or Ln, `i;ll. ' ai:c frog, 1,2f-lina livestock For
t:hc nurnoses of t:lis section.
Raceints c?crived from training livestock are
recei..ts Jeri,,►ed fror-. feeding livestock for the purposes of
this sccl ion.
(G) Banks and financial corporations.--Exempted
from tihe municipal gross receipts tax are the receipts of
banks and financial corporations from selling or leasing pro-
perty or services in the course of their regular banking and
financial cornoration functions.
(7) from the municipal gross
tax, are t::-:� r(,-cci.•*)':s from ,ellina vehicles on which
'4-11-15 _:".S?. .1953.
i
( ;) Innurnncc From tlw! rl'..inicl'• al
ro3:, :C' _7c1.•'"L.� to a2'C? ':ihc'. rCC'�.L'� 3 OF iriSLlr3riCe CO" '�1n1^_S or
t;l :lri:!'h t th rnr)� fro-
(9 ) Divi,,7l:nds anc! lnt-crest. --:.'vennt+ed `ror the
111:hicinal rrns:, ta,- are tizc rccei71ts received as
i.nLarR�_:,t o n loaned pr deposited, receipts receiverl as
Cl ivid-,::cis or interest from stocks , ponds or securities or
r:scents :_'.:)m the salr~, of stoct:s , bonds or securities.
(1n) Fuol . --I:Xor'ntnu from the municipal qross receipts
tax are the from selling and the use of r�asolirie or
special fuel on Which the tax innosed by section 72-27-3 1INS?1 1953
or :action 64-26-63 M!Sn 1953 has been paid and not refunded.
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t"?ccasirn.�l nlr� of -3rc,r�rt•, or r, ,rvic^s . --
:,xemoted from the municinn1 aross, receipts tax are the receipts
from tiia isolated or occasional saic of or lonsina of proncrty
or a service by a person wino is neither regularly engaged nor
holdina himself out as enciaged in the business of selling or
leasing the same or similar Property or service.
(12) Certain organizations.--Exempted from the
municinal ;rocs reccints tax are the receipts of organizations
that demonstrate to the bureau that they have been granted
exempt on from t:ie f.cd(-.ral income tax by the United States
eC:-.:,issioner of internal revenue as organizations described in
sC::tion 501 (c) ( 3 ) of ttic, Unitec? Statcr. Internal Revenur-- Cod of
i 1
5 7i a -or,.c o," o r r.F 'III 1 l r n�t. r :iis s ecL.-..i o�s : e s not aT,.
q."r
to FroT^ an unr%7�lato(.! trawi or husine.`is as
rie'mine. in of t1w Pritec! .`)fates Int^rna.l ".0?-c nu!?
COC?L '?` 1jI*..q, as or reinLli"!�)r'rCd .
(13) ".,-sale activities of an armeO forces instrumo-ntalitv.-
T.::e: nted frog` t:-1c municipal. gross reccints tax arc t1l1C? r,?ceints
from snllinq tani-irlc neroonal nronert�r and the use of nron^rty
1)v an-i instrumentality of the armed forces of the [Jnited States
enrac-e;i in resale activi tins.
(i4 ) c.>il and (7as or mineral interests .--Exempted from
tine municipal gross receipts tax are the receipts from tine sale
of or leasing of oil, natural gas or mineral interests .
(15) Persons subject to Oil and Gas I:morgency School
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{
_'a:: a i ; imhosed by i.1 and On
Emorgency School Tax Act, the provisions of r act shall
apply and determine the full measure of tax liability for the
orivilerTe of engwii.nq in the business stated in the act, and no
orovision of the :'tunicinal Gross ?receipts Tax Ordinance shall
apply to or create a tax liability for such privilege ; except
that any person engaging in the business of severing oil, natural
gas or liquid, hvdrocarbons from the soil of this state, who
sells oil , natural gas or liquid hydrocarbons other than for
subseauent resale in the ordinary course of business or for
use as an inr;redient or component part of a manufacturod
nroduc_y is su.%ic t to the .'lunicinal_ Gross oceints r-1,1%
'lr.11:lanco as to sales , as well as to the oil. and Gas
::o of the :Iunici:)al Gross Pccei„ ts
Or(llnance shall ann].V to the sto aric of oil , natural r?,-13 or
liquid ':ydrocarro-., , individually or any combination thereof,
.)r to the use c`. s-,.ch products for fuel in the oncration of a
ffnroduCtlon iini.t” --,.s defin.-?(' by the Oil and Gas F'ncr(t_ncv
School Tax Act .
UG) Pcfincrs and ncrgons SIIbj0Ct to :1atural Gas
Processors Ta.x Ac';'_- . --[•'hel, , nrivi l ecte tax is innosed ti:
:;atural Gas Processors Tax Act, the provisions of tho act shall
anpl%, and determine the full measure of tax liability for the
privilege of engac;ina in the business stated in the act and no
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Pro_visic),I of t-ho 'Iunicinal I'loccints ^a:: Ordinance shall
apnllf to or create a tax liability for such privilege , except
t:,i at any producer or processor of natural gas or liquid hydro-
carbons who sells natural gas or liquid hydrocarbons other than
for subsequent- resale in the ordinary course of business or for
use as an ingredient or component part of a manufactured product
is subject to the municipal Gross Receipts Tax Ordinance as to
those sales , as well as to the Natural. Gas Processors Tax Act.
:10 provision of the Munipinal Cross Receipts Tax
Ordinance shall apply -to the storage or use of oil , natural
eras or liquid hydrocarbons, individually or any combinat:.on
t:icrcof, whon stored or usod b�, a "processor" , as defined by
t :e _.atural (las Processor^ '. ax . .ct, or by a person enc aaed in
the :)usines.s of refining oil , natural eras or liquid hydrocarbons-,
who' stores or rise-; the oil , natural c*as or li.cruid hyrazocarbons
in tha rc^rular course of iris refininq nusiness .
(17) Pe_sons subject to Resources Excise Tax Act.--
When a pr4_v4lcr4 tar is inncsed by the Resources Excise Tax. •.
Act, the provision of tho act shall apply and determine the ,
full measure of to.,: liability for the privilege of encgaclincl
in the business stated in the act and - no provision of the
:Iunicinal gross Roccints Tax ordinance shall a,)rnly to or create
a tar, liability for such privilege except in the same manner
as is provided in section 72-16A-27 TIP•ISA 1953 in regard to - the
Now Mexico Cross Peceints and Compensating Tar. Act.
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r -
( 18) ni.]. lnd cias c.onrurted in the oineline trans-
portation of oil and gas products. --Exempted from the municipal
gross receipts tax are receipts from the sale of oil ,
natural cas , licruid hvdrocarbon or any combination thereof
consumed as fuel in the pipeline transportation of such products .
(19) Fees from social organizations.--Exempted from
the municipal gross receipts tax are the receipts
from dues and registration fees of nonprofit social, fraternal ,
political , trade , business, labor or professional organizations.
(20) Purses and jockey remuneration at New r1exico
race tracks .--Y":;ercted from the municipal gross receipts tax
are the receints of horserien , jockeys and trainers
frog, purscn at :... "e::ico horse race tracks subject to taxes
:evi-:,d under section 60-6-9 !TFIS7A 1953.
(2].) Relicious activities .--Exempted from the municipal
cross :e;,eip':s tax are the receipts of a minister
of a rel .aious ornanization , Which organization has been granted
an exenotion fron federal income tax by the United States
corumissioner of internal revenue as an organization describes?
in section 501 (c) (3) of the United States Internal Revenue Code
of 1954 , as amended or renumbered, from religious services
provided by the minister to an individual recipient of the
service .
(22) Theatrical and television films and tapes.--
Exempted from the municipal gross receipts tax are
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the r<'Ci 1:1.5 fror io:lsinc1 or llccnsinq 0r t,1 2atrical. an(l
television films and tancs of any hind.
(33) Tor^norary provi s ion. --E.,:cmptcd from the
municipal cross rcctcipts tlax arc receipts from contracts
entered into prior to aril 10, 1975 , which do not permit
an increase in price to cover the municipal gross receipts
tax and which are registered with the bureau of revenue as
provided I,y the commissioner. Such receipts shall be taxed
accordincr to the lams existing prior to April 10 , 1975.
Section 9. ::n,!T_A:,/A.IFLI'. r.-IM1iJSACTIO CEPTIPICATAES , FARi?FT S 1
.,,:1n 11A:4CI:!"nSI Sri :! OTHER I;VInE"TE rt'nj Inc;r1 �.n '11.11 1T 1
�.. ill nontaxable trallsactior, ecrtlflcltes cxecutec'.
or :,:101110 :1f".` in the '.,Iosscsslon of the Se11er or
lessor fo!' ^r:tc:;7.' to transactions at the tiro thC' rlo:lt l::a��le
transact-ions occ,,ir. If the seller or lessor 1; not is ')os.,(,s,-ion
of tales^ nontaxal le transaction certificates within sixty. clays
fro:, t:lc date notice rec-Tuirincl the possession of these: nontanable
transaction certificates is giv(--n the seller or lessor by tale
commissioner of revenue_ or his delegate, deductions claimec?
t:Ie seller or lessor which require delivery of thes3 non-
taxai)le transaction certificates shall be disalloi;cd. The
nontaxable transaction certificates shall coIltain the infor-
mation and be in a form prescribed by the bureau. Only buyers
or lessees Wici have a rec;istration number or have, applied for
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a recri : ` ra!:ion nuMher ane# have not heen ref_usecl one un(?er
subsection C of Section 72-13-29 !Tr1SA 1953 shall execute non-
taxable transaction certificates . When the seller or lessor
accents a nontaxable transaction certificate within the required
time and in good faith that the buyer or lessee will employ
the property or service transferred in a nontaxable manner,
the properly executed nontaxable transaction certificate shall
be conclusive evidence, and the only material evidence, that
the proceeds from the transaction are deductible from the
seller' s or lessor' s gross receipts.
B. Properly executed documents required to support the
deductions provided in sul)soctions (B) , (M) and (CC) of Section
11 should be in the posscsslon of the seller at the tir~a the
.nontaxablo transactions occur. If the seller is not in possession
of these documents %-iithin si::ty d, -fs from the date notice
raquirinn the nossDssion of these documents is given to the
seller by the corimissioner of revenue or his delegate ,
Oeductions claimed a;► the seller or lessor which rcquirc
delivery of thczsr documents shall be disallowed. These docu-
ments shall contain the information, and be in a form, pre-
scribed 1_),, the bureau. When the seller accepts these documents
within the required time and in good faith that the buyer
will employ the property or service transferred in a nontaxable
manner, the nronr_rly executed documents shall be conclusive
evidence, and the only material evidence, that the proceeds
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from t:ir_ trnns,►c.tion are dl:,ductii}1^ from the seller' s. dross
receipts .
C. "otification , as that term is used in this section,
is sufficient if the i:otice is mailed or served as provided
in subsection A of section 72-13-26 112,ISR 1953. ifotice by the
commissioner under this section shall not be given prior to
the cor,Lmencement of an audit of the seller from whom the
documents are required.
Section 10. SUSPP:ISION Or THE RIGI?T TO USE A MONT1 "KABLE
TRP,.:1SACTI0,: CERTTFICTTA"i. --
If the coMnissioner suspends the right of any person
to use nonta.:able transaction cartifi;lates ?pursuant to section
72-1GA-13. 1. '1:ISl 1953 , suc`i suspension annlics to the use of
suc:z cortificates unLler t?:e :iunicinal Gross :?ecei:�ts Tax
Ordinance.
Section 11. Dr:DUCTIm;; .--
In computing the municipal gross receipts tax due, only
the receipts spccified in subsections (A) through (DD) of
Section. 11 of the :1unicipal Gross receipts Tax Ordinance may
be deductaO . Receipts , whether specified once or several times
in su:.)sections (,t) through (DD) of Section 11, may be deducted
on. lv once from gross receipts.
A. Sales to manufacturers. --receipts from selling
tangible personal pronerty may be deducted from gross receipts
if the sale is made to a person engaged in the business of
-lti-
manufacturing? who z nontaxable transaction cart-ifi.cate.
to the seller. The buyer Celivering the nontaxable transaction
certificate must incorporate the tangible personal property
as an ingredient or component part of the product which he is
in the business of manufacturing.
B. Sale of tangible personal property for resale .--
Receipts from selling tangible personal property may be deducted
from gross receipts if the sale is made to a person who
delivers a nontaxable transaction certificate to the seller.
The buyer delivering the nontaxable transaction certificate
rust resell the tangible personal. property either by itself or
in combination with other tangible personal property in the
ordinary course of business.
C. Sale of z service for resale.--Receints from
selling a service for resale may be deducted fror gross receipts
if the sale is made to a person uho delivers a nontaxable trans
action certificate. The buyer delivering tie nontaxable
transaction certificate must separately state the value of
the service purchased in his charge for the service on its
subsequent sale, and the subsequent sale must be in the
ordinary course of business and subject to the municipal
gross receipts tax.
D. Sale of tangible personal property for leasing.--
Receints from selling tangible personal property, other than
furniture or appliances the receipts from the rental or lease
—17—
Ask r
are ,'-fl,urtihlc ur,ler. •,-ira(:ranh ( 3) of su->>ecti:;-i
I1 of Section 11 and other than mobile homes as defined in
section 64-1-3 'II•tS2% 1953 , may be deducted from gross receipts
if the silo is ;gads to a nerson who delivers a nontaxable
transaction cert ~; crate to the seller. The buver deliverincr
the nontaxable transaction certificate must be engaged in
a business which derives a substantial portion of its receipts
from leasinq or selling tangible personal property of the type
leased. The bu-.,cr may not utilize the tangible personal
property in an,, manner other than holding it for lease or sale ,
or leasinn or sellina it either by itself or in combination with
otIlcr tan-iible personal property in the ordinary course of
i.1J 1n1.1J:J•
?;. Lcasn for sub.soc lent lease. --P.ecci.'�ts from leasinn
tanc ilile nnrsonal pron,:,rt,i , ot'.!er than furniture or annliances
t ho recci-)ts f.ron. the rental or lease of which are deductible
under paragraph (3) of subsection II of Section 11, and other
than mobile homes as defined in section 64-1-8 ?II-iSA 1953 , may
be deduct,.-�c: from gross receipts if the lease is made to a
lessee %;,iio delivers a nonta::ahle transaction certificate to
t'ne lessor. The lessee delivering the nonta%able transaction
certificate rya-/ not use the tangible personal property in any
;.canner other than for subsequent lease in the ordinary course
of business .
F. Sale of tangible personal property to persons
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enra,Tc . in the construction business. --
(1) Receipts from selling tangible personal
property may be deducted from gross receipts if the sale is
made to a person engaged in the construction business who
delivers a nontaxable transaction certificate to the seller.
(2) The buver delivering the nontaxable trans-
action certificate must incorporate the tangible personal
property as :
(a) an ingredient or component part of
a construction project which is subject to the municipal gross
raceints tax upon its comnletion or upon the completion of
'Cho overall construction nrojoct of w:iich it is a part ; or
an inctrodient or component part of
I
a construction project t.;hich is subject to the municipal gross
receipts ta:: upon tine sale in the ordinary course of business
of the real prone-t upon which it Nias constructer?.
G. Sale of construction services to persons
engaged in the construction business.--
(1) Roccints from selling a construction
service may be deducted from gross receipts if the sale is
*�iacle to a person engaged in the construction business who
delivers a nontaxable transaction certificate to the person
performing the construction service.
(2) The buver delivering the nontaxable trans-
action certificate must have the construction services
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Ir
v�
por formerl upon :
(a) a construction project which is
subject to the municipal gross receipts tax upon its
completion or upon the completion of the overall construction
project of which it is a part; or
(b) a construction project which is
subject to the municipal gross receipts tax upon the sale in
the ordinary course of business of the real property upon
which it was constructed.
H. Sale or lease of real property and lease of
r:obile :comes . --
(1) nAceipts from the sale or lease of real
_)roa^rtv, and from t:ze lease of a mobile home as defined in
section 64-1-9 :::! '. 1953 and as provided in subsection (2) of
t:7is section , of?:er than receipts from the sale or lease! of
oil , natural gas or mineral interests exempted by paragraph
(14) of subsection B of Section 8, may be deducted from crross
receipts . Iiowever, that portion of the receipts from the sale
of real property which is attributable to improvements
constructed on the real property by the seller in the ordinary
course of his construction business may .ot be deducted from
dress receipts.
(2) Receipts received by hotels , motels, rooming
houses , campgrounds , quest ranches, trailer parks , or
simil— facilities , except receipts received b ► trailer.
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ar;::; from the r,,:: tal of a sn icc: or a mobile horse for a Period
of at least one month, from lodgers, quests, roomers or
occupants are not .receipts from leasing real property for
the piirnoses of this soction.
(3) Receipts attributable to the inclusion of
furniture or annliances furnished as part of a leased or
rented dwelling house, mobile homes defined in section 64-1-
II NMSA 1953 or apartment by the landlord or lessor may be
deducted from gross receipts.
I. Sales to aovo rnmental agencies.--Receipts from
selling tangible personal property, other than nonfissionable
�ctallif,=us mineral ore , to the United States or an% agency
or instruriontality thereof or tic state, of New M:.xico or any
I •
;political subdivision thereof ;iav k, deducted from gross
receipts . Receipts from selling tanai`:le personal nrornert,.71
other t:� in nonfissionable metalliferous mineral ore , to the
governing bode of any Indian tribe or Indian pueblo for use on
Indian reservations or pueblo grants, may be deducted from
grass receipts .
J. Transactions on interstate commerce.--Receipts
from transactions in interstate commerce may be deducted from
gross receipts to the extent that the inaosition of the municipal
gross receipts tea:. would be unlawful under the United States
Constitution.
�:. Intrastate transportation and services in
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interstate commerce.--
(1) receipts from transporting persons or
property from one point to another in this state may be deducted
from cross receipts when such persons or property, including
any special or extra service reasonably necessary in connection
therewith , are being transported in interstate or foreign
commerce under a single contract.
(2) Receints from handling, storage , dravage
or packing of property or any other accessorial services on
property, which property has moved or will trove in interstate
or foreign commerce , when such services are performed by a
local agent for a carrier or a carrier, and when suc:n services
are nerformed under a single contract in relation to trans-
oortation services , may be deducted from gross receipts .
L. Sale of a service to an out-of-state buyer.--
(1) Receints from performing a service other
than a legal , accountincx or architectural service may be
deducted from gross receipts if the sale of the service is
made to a person who delivers to the seller either a nontaxable
transaction certificate or other evidence acceptable to the
bureau that the huycr will make initial use of the product of
the service outside New Mexico.
(2) The buyer delivering the nontaxable trans-
action certificate or other evidence acceptable to the bureau
must make initial use of the product of the service outside
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rim-
:10r; Mexico.
M. Feed--Fertilizers. --Receipts from selling feed
for livestock or poultry, seeds , roots , bulbs , plants, soil
conditioners , fertilizers, insecticides , fungicides or weedicides
or eater for irrigation purposes may be deducted from gross
receipts if the sale is made to a person who states in writing
that he is regularly cngaged in the business of farming or
ranching. Receipts of auctioneers from selling livestock or
other agricultural products at auction may also be deducted
from gross receipts .
?1. �,iarehousing, threshing, harvesting, growing,
cultivating and proccssinT agricultural products.--
(1) Rccpints from warehousinq twain or other
ac.icultural products ma-,,, l)c de lucted from gross receipts.
i?) Receipts from threshinclr clearing, gro�:,ina,
cultivatinc! or harvesting agricultural products, including
the ginning of cotton or processing for Growers , producers or
nonprofit marketinci associations of other agricultural products
raised for food and fiber, including livestock, may be deducted
from gross receipts.
n. Sal-ns to certain organizations . --Receipts from
sollincr tanr.ible personal property, other than Metalliferous
funeral ore , to organizations that have been chanted exemotion
from the federal income tax by the United States commissioner
of internal revenue as organizations described in section 501
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(c ) ( 3) of the United Stat:�s Internal Revenun Cole: of 1954 , as
amendeu or renumbered, may be deducted from gross receipts if
the sale: is made to an organization that delivers a nontaxable
transaction certificate to the seller. The buyer deliverinn
the nontaxable transaction certificate must employ the tangible
personal property in the conduct of functions described in
section 501 (c) ( 3) and must not employ the tangible personal
property in the conduct of an unrelated trade or business as
defined in section 513 of the United States Internal Revenue
Coda of 1954 , as amended or renumbered. Receipts from selling
tangible norsonal property that will become an ingredient or
corpor.<� It part of a construction -)reject are not receipts from
sell.inr, tangible Personal oronerty for purposes of this section.
P. Sales to hanks and financial cornorztions .--
Receipts from scl.linq tangible personal property, oth--2r than
metalliforous mincral ore , to ban}:s and financial corporations
who employ the taI1 Tible personal property in their rectular
banking and financial corporation. `unctions mad► be deducted
from moss receipts.
luricultural imoler;ients--Aircraft--Vehicles that
are not rcruired to be rcclistered. --Pi`ty ?or cent [500] of
rec-oip'tr, from selling agricultural implements , farm tractors ,
aircraft or vehicles that are not required to be registered
under the .?otor Vehicle Cocle, sections 64-1-1 to 64-23-24
:171SA 1933 , may be deducted from gross receipts. Any deduction
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allows d under subsection Z of Section 11 must be taken
before the deduction allowed by this section is computed.
R. Publication sales.--Receipts from publishing
newspapers or magazines , except from selling advertising space,
may be deducted from gross receipts.
Receipts from selling magazines at retail may not
be deducted from gross receipts.
S. Newspaper sales.--Receipts from selling news-
papers , except from selling advertising space, may be deducted
from gross receipts.
T. Chemicals and reagents.--Receipts from sf•lling
chemicals or reagents to any mining, milling or oil company
for use in processing ores or oil in a mill , smelter or refinery
or in acidizing oil wells, and receipts from selling chemicals
or reagents in lots in excess of eighteen tons may be deducted
from dross receipts. Receipts from selling explosives,
blasting powder or dynamite may not be deducted from gross
receipts.
U. Commissions. --Receipts derived from commis-
sions on sales of tangible personal property which are not
suLject to the municipal ross receipts tax may be deducted
from gross receipts.
V. ?Refunds--Uncollectible debts.--Refunds and
al].o:.rances made to buyers or amounts written off the books
as an uncollectlb].2 deft b%; a ne:.son renortina municipal gross
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receipts tax on an accrual basis rlay ba deducl-cd from gror.s
receipts. If debts reported uncollectible are subsequently
collected, such receipts shall be included in gross receipts
in the month of collection.
11. Warranty obligations.--Receipts of a dealer
from furnishing goods or services to the purchaser of tangible
personal property to fulfill a warranty obligation of the
manufacturer of the property may be deducted from gross receipts.
Administrative and accounting services.--
Receipts of a corporation for administrative and accounting
services performed by it for a wholly-owned subsidiary corpo-
ration upon a noz:�)rofit or cost basis , and receipts from a
...%lolly-owned subsidiary for the joint use or sharing of office
machincs and facilities upon a nonprofit or cost basis , rnatr
be deducted from gross roceints.
Y. P.cntal or lease of vehicles used in interstate
commerce. --_1cceipts from the rental or leasing of vehicles used
in the transportation of passengers or Property for hire in
interstate comercc under the, rec7ulations or authorization
of any agency of the Unite;l States may be deducted..
°. . 1r�ac?e-ln allo��rancc:.--That portion of the
rcceipts of a seller that is represented lby a trade-in of
tangible personal property of the same type being sold may be
deducted from gross receipts.
:1A. Spacial fuel.--Receipts from the sale of special
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ruel , as defined in sr_ction 64-26-67 '.IIIS7. 1953 , may be deducted
from gross receipts if the purchaser is a bonded special
fuel user under section G4-26-73 WISP.. 1953 xiho delivers a non-
taxable transaction certificate to the seller.
IJ3. Sale of prosthetic devices.--Receipts from sell-
ing prosthetic devices may be deducted from gross receipts if
the sale is made to a person i•;ho is licensed to practice
medicine, osteopathy, dentistry, podiatry, optometry, chiropractic
or professional nursing and c.rho delivers a nontaxable trans-
action certificate to the seller. The buyer delivering the
nontaxable transaction certificate must deliver the prosthetic
device inciclental to the performance of a service and must
4nclude the value of the Prosthetic device in his charge for
the zcrvice .
CC. Sale of property used in the manufacture of
-;ei•;elrv. --Receipts from selling tangible personal nronerty may
be deducted from gross receipts if the sale is made to a :person
;•rho states in writinci that he t-:ill use the property so purchased
in manufacturing jewelry. The buyer must incorporate the
tangible personal property as an ingredient or component pal-t
of the jo elry that lie is in the business of manufacturing.
The der?uction allowed a seller under this section shall not
exceed the sum of one thousand dollars ($1000) during anv
twelve-month period attributable to purchases by a single
purchaser.
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DD. Sale )F certain services performed directly on
oroduct manufactured. --Receipts from sellinct the service of
combining or processing components or materials may be deducted
from gross receipts if the sale is made to a person engaged
in the business of manufacturing who delivers a nontaxable
transaction certificate to the seller. The buyer delivering
the nontaxable transaction certificate must have the service
performed directl,: upon tancrible personal property which he is
in the business of manufacturing or upon ingredients or
cor.,-)onent parts thereof_ .
Section 12 . SEVERJIL'ILITY.--
if any part or parts or application of an,l part of the
:.1,=i cinal Gross Receipts Trn : Ordinance is 'held invaalid, such
hol,Iin,T .ball not affo.ct tho validity of tho rcmaininc; parts
of the :unicin.-il (-ross Reccints '!'ax Ordinance. The governing
hor. : hereby declares that it would have parsed the re:�ainina
ra=ts of tho 11un.ici:hal Gross Receipts Tax Ordinance even if it.
:iad knot-:n that such hart or parts or application of any part
t:iereo:: woulO be declared invalid. further, tho governing
bod•: declares that if any deduction or exemption c{ranted by
the ;Iuni.cinal Gross Receipts Tax Ordinance be held invalid,
it is t'le intent of the governing bod,,! that tha unaffected
rer..ainder of the Municipal Gross Receipts Tax Ordinance he
continued in force and that the taxpayers theretofore enjovinn
such deduction or exemption shall thenceforth, from the
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effective date of tivh declaration of invalidity, 1�(_, liable for
the rate of tart under. section 4 of t:ze Municipal Gross P,eceipts
Tax Ordinance .
Section 13 . BUREAU AS 11f;P,NT FOR COLLECTIn'I-- mtr�TIC IP?1LITY
LIABLE ON PEFIRIDS.--
This municipality hereby appoints the tdew Mexico hureau
of revenue as its arent to administer and enforce the collection
of the municipal dross receipts tax. The Tar. Administration
Fact (sections 72-13-13 through 72-13-94 .IMSA 1953) applies to
the administration and enforcement of the Municipal Gross
Roceints Tax Ordinance. Anv refund or other reimbursement
k
— hiclh is due a tc1::'7.}'!('r :Incicr +-:1E. "unicir_al Gross Recci:7ts Tax
Ordinance is a dci)t owinfr tO such t:::::iaver from the nunicinality.
Tho bljr"iau ra:.' romit r;u.cth rer-u" 0 or reimbursnrc• nt to tih^. ta::-
'?:h'i(�r an,! (Induct an ortl:ival:'.nt a:"O.,;ht from current collections
.-h':tributzi',!e to the municlnalit',.'. Should current collections
not be sufficient LC satisfy all refunds and reimbursements
that arc dtic and owing, tih_� hureau is authoric^d and dir-octed
to ma):c such rcfwid s and rLiribursenents from the amounts of
state moss receipt, ta:: otherwise distributable to the
riuniclnalit- , und�..,r the nrovisions of section 72-13-24 !MS7%
1953. If t`.he Lurcau is un:iole to otherwise satisfy all
refunds and rcimLur.zer,,ents that are due and ot•:inq, the bureau
s'.hall so advise the municipality, and the municipality shall
treat such refunds and reimbursements as extraordinarv, non-
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)tJ
recurring, debts for which the municipality shall. be liable
as if it had been a party to the claim for refund or reimburse-
ment, and which shall be satisfied by additional assessments
of the citizens of the municipality or by any other legal
means. Should the bureau require it, the municipality will
enter into a contract with the bureau, whose terms are the same
as those set out in this section.
Section 14 . EPPECTIVE DATE.—
The effective data of the Municipal Gross Receipts Tax
Ordinance shall be January 1, 1976 •
PASSED, ADOPTED, AND APPROVED THIS 9th UAY 0r
July , 197 9
4AYOR
ATTEST:
t
'yam
.i CIPA .I RK
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i
i
i
i
On this 9th day of July 1975, before me appeared Mayor
Philip Cantu, Jr. to me personally known; who, being by me
duly sworn (or affirmed) did say that he is the Mayor of
Taos, New Mexico, and that the seal affixed to this ordinance
is the municipal seal of said municipality, and that said
instrument was signed and sealed in behalf of said municipality
by authority of its governing body and said Mayor Philip Cantu
acknowledged said instrument to be the free act and deed of
said municipality.
My Commission is
�y Commission expires p ,
CUE
NOTARY PUBLIC
1 •
SUMMARY OF THE GROSS RECEIPTS TAX ORDINANCE
SO TI-11.7,Y CAN PUBLISH rr TN NEWSPAPER
Notice is hereby given that the Goveiutng Body of the Town of Taos,
at its regular meeting on July 9, 1975 adopted a local gross receipts tax.
The ordinance is entitled, "An Ordinance enacted pursuant to Chapter 16,
Special Session, of the Laws of 1975 imposing a municipal gross receipts
tax." The ordinance provides for a levy of a tax of 1/4¢ per dollar of
gross revenues of all persons doing business in the Town of Taos. The tax
will be collected by the New Mexico State Bureau of Revenue beginning
January 1, 1976. The proceeds will be used to finance general Town services.
hilip Ca u, Jr.
Mayor
ATTEST:
Nes or Galle ,
o Adm.
(TO BE USED AFTER ADOPTION OF THE GROSS RECEIPTS TAX ORDINANCE)
E TAXATION & REVENUE DEPARTMENT
P.O. BOX 630
°•!os•"� �'f _ Santa Fe, re v Mexico 8,509
NEW MUNICIPAL GROSS RECEIPTS TAX RATES �.
Effective Jul 1 1981 �
The following list gives the local combined gross receipts tax rates in effect for
July 1, 1981 and subsequent months for all incorporated New k1exico k1unicipalities:
Combined State, Municipal
Gross Receipts Tax Form CRS-1 and County Current Rate
Municipality Location Code (As of July 1, 1981)
Alamogordo 15-116 3.5%
Albuquerque 02-100 3.5%
Artesia 03-205 3.5%
Aztec 16-218 4.0%
Bayard** 08-206 4.0%
Belen** 14-129 4.0%,
Bernalillo 29-120 4.096
Bloomfield 16-312 4.0%
Bosque Farms 14-505 3.5%
Capitan 26-211 4.0%
Carlsbad 03-106 4.0%
Carrizozo 26-307 4.0%
Causey 11-408 4.096
Central** 08-305 4.0%
Chama 17-118 4.0%
Cimarron 09-401 4.0%
Clayton 18-128 4.25%
Cloudcroft 15-213 4.0%
Clovis 05-103 4.0%
Columbus 19-212 3.759E
Corona 26-406 4.0%
Corrales 29-504 3.75%
Cuba 29-311 4.0%
Deming 19-113 3.5%
Des Moines 18-224 4.0%
Dexter 04-201 3.7506
Dora 11-310 3.5%
Eagle Nest 09-509 3.75%
Elida 11-216 3.7506
Encino 22-410 3.75%
Espanola (Rio Arriba) 17-215 4.25%
Espanola (Santa Fe) 01-226 4.25%
Estancia 22-503 4.0qA
Eunice 06-210 3.5%
Farmington 16-121 4.006
Floyd 11-502 3.75%
Folsom 18-411 4.00E
Fort Sumner 27-104 4.0%
Gal;.., 13-114 4.0%
Grady 05-203 3.75%
Grants* 33-227 4.00E
Grenville 18-315 4.0%
Hagerman 04-300 3.7506
Hatch 07-204 3.7594
Hobbs 06-111 3.5%
Hope 03-304 3.7596
House 10-407 4.0%
Hurley** 08-404 4.0%
Jal 06-306 3.594
Jemez Springs 29-217 3.750
Lake Arthur 04-400 3.7506
• 0 #4 ' -
Combined State, Municipal
Gross Receipts Tax Form CRS-1 and County Current Rate
Municipality Location Code (As of July 1, 198 1)
Las Cruces 07-105 4.0%
Las Vegas 12-122 4.25%
Logan 10-309 4.0%
Lordsburg 23-110 3.5%
Los Alamos 32-032 3.5%
Los Lunas 14-316 3.5%
Los Ranchos de
Albuquerque 02-200 3.5%
Loving 03-403 3.5%
Loving-con 06-405 3.5%
Magdalena 25-221 3.75%
Maxwell 09-202 3.75%
Melrose 05-402 3.75%
:Mesilla 07-303 4.25%
Milan* 33-1.31 4.0%
Moriarty 22-223 4.0%
Mosquero 31-208 3.75%
Mountainair 22-127 3.5%
Pecos 12-313 4.0%
Portales 11-119 4.0%
Questa 20-222 4.25%
Raton*** 09-102 5.0%
Red River 20-317 4.25%
Reserve 28-130 4.0%
Rio Rancho**** p 29-524 3.5%
Roswell (,r / 04-101 4.0%
Roy 31-109 3.75%
Ruidoso 26-112 '} 4.0%
Ruidoso Downs 26-501 4.0%
San Jon 10-214 4.0%
Santa Fe f- 01-123 3.75%
Santa Rosa 24-108 4.25%
San Ysidro 29-409 3.75%
Silver City 08-107 4.0%
Socorro 25-125 4.0%
Springer 09-301 3.75%
Taos 20-126 4.25%
Tatum** 06-500 3.75%
Texico 05-302 / 3.5%
Tijeras** 02-318 �, / ) r l "--4.0%
Truth or Consequences** 21- 124 4.0%
Tucumcari �� 10-117 ) 4.0%
Tularosa 15-308 4.0%
Vaughn u 24-207 �" 4.25%
Virden / 23-209 3.75%
Wagon Mound 30-115 4.0%
Willard 22-314 3.75%
Williamsburg 21-220 4.0%
Note: Effective July 1, 1981, the state wide gross receipts and compensating tax rate is
lowered from 3.75% to 150°6. The "initial" municipal y,.% gross receipts tax is repealed,
i.e. the first 1�% which was enacted by council action without negative referendum.
,Municipalities now have authority to implement a total of 3/4 of 1% municipal gross
receipts taxes which are subject to negative referendum.
*The location code numbers for Grants do Milan are changed because these two municipali-
ties are in the new Cibola County.
**:Municipal gross receipts tax rate increases were authorized & approved prior to the
effective date of July, 1981 in seven New :Mexico municipalities: Bayard, Belen, Central,
Hurley, Tatum, Tijeras and Truth or Consequences.
***Raton implemented the Supplemental Municipal Gross Receipts Tax (Sections 7-19-10
to 7-19-18, NMSA 1978) at 1.00% effective July, 1981. The total rate authorized is
applicable only for the City of Raton and includes the total of 3/2% Municipal Gross
Receipts taxes and the Supplemental Municipal Gross Receipts Tax.
****Rio Rancho was officially incorporated as a New Mexico Municipality for tax
distribution purposes beginning in March, 1981.
NF-W COUNTY TAX RATES EFFECTIVE JULY 1, 1981
Gross Receipts Tax Form CRS-1
Location Code Combined State & County
County for "Remainder of County" Current Rate
Bernalillo** 02-002 3.75%
Catron 28-028 3.5%
Chaves 04-004 3.5%
Cibola*** 33-033 3.5%
Colfax 09-009 3.5%
Curry 05-005 3.5%
De Baca 27-027 3.5%
Dona Ana* 07-007 3.75%
Eddy 03-003 3.5%
Grant 08-008 3.5%
Guadalupe* 24-024 3.75%
Harding 31-031 3.5%
Hidalgo 23-023 3.5%
Lea 06-006 3.5%
Lincoln 26-026 3.5%
Los Alamos 32-032 3.5%
Luna 19-019 3.5%
McKinley 13-013 3.5%
Mora 30-030 3.5%
Otero 15-015 3.5%
Quay 10-010 3.5%
Rio Arriba* 17-017 3.75%
Roosevelt 11-011 3.5%
Sandoval 29-029 3.5%
San Juan 16-016 3.5%
San Miguel* 12-012 3.75%
Santa Fe* 01-001 3.75%
Sierra 21-021 3.5%
Socorro 25-025 3.5%
Ta`+3* 20-020 3.75%
Torrance 22-022 3.5%
Union* 18-018 3.75%
Valencia 14-014 3.5%
*Seven counties in New Mexico impose %% County Sales Tax for supporting a county
indigent fund: Dona Ana, Guadalupe, Rio Arriba, San Niguel, Santa Fe, Taos do Union
Counties.
**Bernalillo County implemented the County Fire Protection Excise Tax effective
July 1, 1980 which is applicable only in the area of Bernalillo County outside any municipal
boundaries. The Bernalillo County tax is not applicab(e inside the boundaries of
Albuquerque, Los Ranchos de Albuquerque and Tijeras.
***Cibola County, a 33rd County, is created out of the western part of Valencia County,
effective June 19, 1981. This county has two incorporated municipalities within its
boundaries: Grants and Milan.
'r
T'riE SELLER'S BUSINESS LOCAN DETERMINES THE RATE OF TAX 40
,-\ taxpayer is required to report gross receipts at the 'Location number and the tax rate where his
business is located. This is true even though the sale or delivery of goods or services was not made
from or performed at the place of business. (Refer to the back of the CRS-1 report form for !ovation
numbers and tax rates.)
If a taxpayer has -esident sales personnel in New Mexico, the place of business includes the place
or places where such saes personnel reside.
A taxpaver who is li�Nble for the Gross Receipts Tax and has no olace of business or resident sales
personnel in yew Mexico si�ould designate "out-of-state" as the place of business, use 88-888 as the
location code and calculate tax due at the 3Y2% state rate. Place of business includes each
construction site for taxpayers engaged in the construction business.
HOW TO REPORT THE MUNICIPAL AND COUNTY TAXES -
These taxes are administered by the Revenue Division of the Taxation and Revenue Department
and distributed to the ;municipalities and counties. They are to be repor*.ed on :he Combined Report
Forr.: CRS-1 presently utilized by taxpayers for reporting state gross receipts tax, compensating tax
and state withholding tax. Municipal and county location numbers and tax rates are provided in Tax
Rate Schedule B on the back of the CRS-1 report form. The reporting period's net taxable receipts
can be multiplied by the decimal equivalent of the following applicable tax rate-
3-1/2% = .035
3-3/4% = ,0375
4% = .04
-1/446 _ .0425
a-1/2% = .045
4-314% = .0475
5% = .05
WHY DOESN'T THE STATE ISSUE TAX TABLES SELLERS CAN USE IN PASSING ON THE TAX?
The gross receipts tax is a tax on the privilege of doing business in New Mexico and is :he
liability of the seller. It is not a sales tax and is not levied on the buyer, although sellers frequentiv
pass the tax on to the buyer as an element of the sales price. The Revenue Division has no
involvement in the relationship between the seller and his buyers.,
CASH BASIS TAXPAYERS
The date payment is received determines the rate of tax applied to the receiC.'s of :axpayers who
report on a cash accounting basis. Receipts received on or before 3une 30, 1931 will not be subject :o
me new municipal gross receipts tax rate. Receipts received on or after July 1. 1931 will be subiec-
to the new -municipal gross receipts tax rate for cash basis taxpayers r e?araless of when the prooer-y
was sold. service was oer:or-ned or orooer-v was leased.
ACCRUAL BASIS TAXPAYERS
The date of delivery determines the rate of taxation to be applied to taxpayers who report on an
accrual basis. "Delivery" is defined as delivery to the purchaser or delivery to a common carrier. A
delivery made by an accrual basis taxpayer on or before June 30, 1981 will not be subject to :he new
municipal gross receipts :ax rate. A delivery made by an accrual basis taxpaver on or ai-er July 1,
1981 will be subiect to the new municipal gross receipts tax rate.
CONSTRUCTION CONTRACTORS
A construction contractor who receives progress payments or other consideration for services
performed on, and materials provided for a construction project will report such payments or other
consideration as gross receipts. If the contractor is a cash basis taxpayer, he will report any suc.i
pavments or other consideration actually received in a particular month as receipts for that month. If
the contractor is an accrual basis taxpayer, any amounts which he earned or billed or to which he
became entitled during a particular month will be reported as receipts for that month.
SPECIFIC EXEMPTIONS
The same exemptions and deductions that apply to the 3!4°5 state gross receipts tax will apoiv In
calculating the municipal gross receipts tax. Two additional exemptions apply to municipal tax: (1)
The transmission of messages by wire or other means from one point within the municipality :I-
another point outside the municipality, and (2) transporting persons or property for 'lire by railroad,
motor vehicle, air transportation or any other means from one point within :he municipality :o . notner
point outside the municipality. Persons engaging in the transportation business may request an
information fiver published by the Communications Bureau which describes in derail the proper
reporting procedure for such receipts.
if you have questions or require additional information, please call the toll free number 1-800-
432-551 l or contact your nearest Revenue Division Office:
District 1 - .,anta ;� - 327-2396
District 2 - Albuquerque - 842-3211
District 3 - Roswell - 623-1750
Dis.ric- 4 - Las Cruces - 323-+538