A. Receipts may only be deducted once from gross receipts or governmental gross receipts when computing the gross receipts tax or governmental gross receipts tax due.
B. The same receipts shall not be both exempt from the gross receipts tax and deducted from gross receipts.
C. The same receipts shall not be both exempt from the governmental gross receipts tax and deducted from governmental gross receipts.
History: 1978 Comp., § 7-9-45, enacted by Laws 1969, ch. 144, § 35; 1970, ch. 77, § 1; 1970, ch. 78, § 1; 1971, ch. 217, § 1; 1972, ch. 39, § 1; 1977, ch. 288, § 1; 1979, ch. 338, § 2; 1984, ch. 129, § 1; 1989, ch. 262, § 5; 1994, ch. 45, § 3; 1995, ch. 70, § 5; 1999, ch. 231, § 2; 2017 (1st S.S.), ch. 3, § 16.
The 2017 (1st S.S.) amendment, effective July 1, 2017, clarified that certain receipts may only be deducted once from gross receipts or governmental gross receipts when computing the gross receipts tax or governmental gross receipts tax due; in Subsection A, deleted "In computing the gross receipts tax or governmental gross receipts tax due, only those receipts specified in Sections 7-9-46 through 7-9-76.2, 7-9-77.1, 7-9-83, 7-9-85 through 7-9-87 and 7-9-89 NMSA 1978 may be deducted. Receipts, whether specified once or several times in those sections, may be deducted only once from gross receipts or governmental gross" and after "Receipts", added "may only be deducted once from gross receipts or governmental gross receipts when computing the gross receipts tax or governmental gross receipts tax due"; in Subsection B, added "The same", after the first occurrence of "receipts", deleted "that are exempted from the gross receipts tax may" and added "shall", after "not be", added "both exempt from the gross receipts tax and", and deleted the last sentence, which provided "Receipts that are deducted from gross receipts may not be exempted from the gross receipts tax."; and in Subsection C, added "The same", after the first occurrence of "receipts", deleted "that are exempted from the governmental gross receipts tax", after "shall not be", added "both exempt from the governmental gross receipts tax and", and deleted the last sentence, which provided "Receipts that are deducted from governmental gross receipts shall not be exempted from the governmental gross receipts tax.".
The 1999 amendment, effective July 1, 1999, in Subsection A, substituted "Sections 7-9-46 through 7-9-76.2, 7-9-77.1, 7-9-83, 7-9-85 through 7-9-87 and 7-9-89 NMSA 1978 may be deducted" for "Sections 7-9-46 through 7-9-76.2, and 7-9-83, through 7-9-85 NMSA 1978 may be deducted" in the first sentence, and substituted "several times in those sections" for "several times in Sections 7-9-46 through 7-9-76.2 and 7-9-83 through 7-9-85 NMSA 1978" in the second sentence.
The 1995 amendment, effective July 1, 1995, substituted "and 7-9-83 through 7-9-85" for "7-9-83 and 7-9-84" in the first and second sentences of Subsection A.
The 1994 amendment, effective July 1, 1994, designated the previously undesignated first two sentences as Subsection A and the previously undesignated last sentence as Subsection B; in Subsection A, inserted "or governmental gross receipts tax" in the first sentence and "7-9-83 and 7-9-84" in both sentences, and added "or governmental gross receipts" at the end of the second sentence; and added Subsection C.
The 1989 amendment, effective July 1, 1989, added the third and fourth sentences.
Deductions or exemptions from a tax must be strictly construed in favor of the taxing authority, must be clearly and unambiguously expressed in the statute, and must be clearly established by the taxpayer claiming the right thereto. Chavez v. Commissioner of Revenue, 1970-NMCA-116, 82 N.M. 97, 476 P.2d 67.
Tax statute must also be given fair, unbiased and reasonable construction, without favor or prejudice to either the taxpayer or the state, to the end that the legislative intent is effectuated and the public interests to be subserved thereby are furthered. Chavez v. Commissioner of Revenue, 1970-NMCA-116, 82 N.M. 97, 476 P.2d 67.
Deductions narrowly but reasonably construed. — If a tax is clearly applicable, except for a statutory exemption, exception or deduction therefrom, the provision for the exemption, exception or deduction must be narrowly but reasonably construed. Chavez v. Commissioner of Revenue, 1970-NMCA-116, 82 N.M. 97, 476 P.2d 67.
Structure 2021 New Mexico Statutes
Article 9 - Gross Receipts and Compensating Tax
Section 7-9-3 - Definitions. (Effective January 1, 2022.)
Section 7-9-3.2 - Additional definition.
Section 7-9-3.3 - Definition; engaging in business.
Section 7-9-3.5 - Definition; gross receipts.
Section 7-9-4 - Imposition and rate of tax; denomination as "gross receipts tax".
Section 7-9-4.3 - Imposition and rate of tax; denomination as "governmental gross receipts tax".
Section 7-9-5 - Presumption of taxability.
Section 7-9-6 - Separately stating the gross receipts tax.
Section 7-9-7 - Imposition and rate of tax; denomination as "compensating tax".
Section 7-9-7.2 - Authority to establish standards for certified service providers.
Section 7-9-8 - Presumption of taxability and value.
Section 7-9-9 - Liability of user for payment of compensating tax.
Section 7-9-10 - Agents for collection of compensating tax; duties.
Section 7-9-11 - Date payment due.
Section 7-9-13 - Exemption; gross receipts tax; governmental agencies.
Section 7-9-13.1 - Exemption; gross receipts tax; certain services.
Section 7-9-14 - Exemption; compensating tax; governmental agencies; Indians.
Section 7-9-15 - Exemption; compensating tax; certain organizations.
Section 7-9-16 - Exemption; gross receipts tax; certain nonprofit facilities.
Section 7-9-17 - Exemption; gross receipts tax; wages.
Section 7-9-18.1 - Exemption; gross receipts tax; food stamps.
Section 7-9-19 - Exemption; gross receipts tax; livestock feeding.
Section 7-9-20 - Exemption; gross receipts tax; certain receipts of homeowners associations.
Section 7-9-22 - Exemption; gross receipts tax; vehicles.
Section 7-9-22.1 - Exemption; gross receipts tax; boats.
Section 7-9-23 - Exemption; compensating tax; vehicles.
Section 7-9-23.1 - Exemption; compensating tax; boats.
Section 7-9-24 - Exemption; gross receipts tax; insurance companies.
Section 7-9-25 - Exemption; gross receipts tax; dividends and interest.
Section 7-9-26 - Exemption; gross receipts and compensating tax; fuel.
Section 7-9-26.1 - Exemption; gross receipts tax and compensating tax; fuel for space vehicles.
Section 7-9-27 - Exemption; compensating tax; personal effects.
Section 7-9-28 - Exemption; gross receipts tax; occasional sale of property or services.
Section 7-9-29 - Exemption; gross receipts tax; certain organizations; exceptions.
Section 7-9-30 - Exemption; compensating tax; railroad equipment, aircraft and space vehicles.
Section 7-9-32 - Exemption; gross receipts tax; oil and gas or mineral interests.
Section 7-9-38.1 - Exemption; gross receipts tax; interstate telecommunications services.
Section 7-9-38.2 - Exemption; gross receipts tax; sale of certain telecommunications services.
Section 7-9-39 - Exemption; gross receipts tax; fees from social organizations.
Section 7-9-41 - Exemption; gross receipts tax; religious activities.
Section 7-9-41.3 - Exemption; receipts from sales by disabled street vendors.
Section 7-9-41.5 - Exemption; nonprofit hospitals from local option gross receipts taxes.
Section 7-9-43.1 - Nontaxable transaction certificates not required by liquor wholesalers.
Section 7-9-46 - Deduction; gross receipts tax; governmental gross receipts; sales to manufacturers.
Section 7-9-50 - Deduction; gross receipts tax; lease for subsequent lease.
Section 7-9-54.4 - Deduction; compensating tax; space-related test articles.
Section 7-9-54.5 - Deduction; compensating tax; test articles.
Section 7-9-56.1 - Deduction; gross receipts tax; internet services.
Section 7-9-56.2 - Deduction; gross receipts tax; hosting world wide web sites.
Section 7-9-56.3 - Deduction; gross receipts; trade-support company in a border zone.
Section 7-9-57 - Deduction; gross receipts tax; sale of certain services to an out-of-state buyer.
Section 7-9-57.2 - Deduction; gross receipts tax; sale of software development services.
Section 7-9-58 - Deduction; gross receipts tax; feed; fertilizers.
Section 7-9-61.1 - Deduction; gross receipts tax; certain receipts.
Section 7-9-61.2 - Deduction; receipts from sales to state-chartered credit unions.
Section 7-9-63 - Deduction; gross receipts tax; publication sales.
Section 7-9-64 - Deduction; gross receipts tax; newspaper sales.
Section 7-9-65 - Deduction; gross receipts tax; chemicals and reagents.
Section 7-9-66 - Deduction; gross receipts tax; commissions.
Section 7-9-66.1 - Deduction; gross receipts tax; certain real estate transactions.
Section 7-9-68 - Deduction; gross receipts tax; warranty obligations.
Section 7-9-69 - Deduction; gross receipts tax; administrative and accounting services.
Section 7-9-71 - Deduction; gross receipts tax; trade-in allowance.
Section 7-9-73.1 - Deduction; gross receipts; governmental gross receipts; hospitals.
Section 7-9-74 - Deduction; gross receipts tax; sale of property used in the manufacture of jewelry.
Section 7-9-76 - Deduction; gross receipts tax; travel agents' commissions paid by certain entities.
Section 7-9-76.1 - Deduction; gross receipts tax; certain manufactured homes.
Section 7-9-76.2 - Deduction; gross receipts tax; films and tapes.
Section 7-9-77 - Deductions; compensating tax.
Section 7-9-77.1 - Deduction; gross receipts tax; certain medical and health care services.
Section 7-9-78 - Deductions; compensating tax; use of tangible personal property for leasing.
Section 7-9-78.1 - Deduction; compensating tax; uranium enrichment plant equipment.
Section 7-9-79 - Credit; compensating tax.
Section 7-9-79.1 - Credit; gross receipts tax; services.
Section 7-9-79.2 - Gross receipts tax; compensating tax; biodiesel blending facility tax credit.
Section 7-9-83 - Deduction; gross receipts tax; jet fuel.
Section 7-9-84 - Deduction; compensating tax; jet fuel.
Section 7-9-85 - Deduction; gross receipts tax; certain organization fundraisers.
Section 7-9-86 - Deduction; gross receipts tax; sales to qualified film production company.
Section 7-9-87 - Deduction; gross receipts tax; lottery retailer receipts.
Section 7-9-88.1 - Credit; gross receipts tax; tax paid to certain tribes.
Section 7-9-92 - Deduction; gross receipts; sale of food at retail food store.
Section 7-9-94 - Deduction; gross receipts; military transformational acquisition programs.
Section 7-9-96.2 - Credit; gross receipts tax; unpaid charges for services provided in a hospital.
Section 7-9-98 - Deduction; compensating tax; biomass-related equipment; biomass materials.
Section 7-9-103.1 - Deduction; gross receipts tax; converting electricity.
Section 7-9-103.2 - Deduction; gross receipts; electricity exchange.
Section 7-9-105 - Credit for penalty pursuant to Section 7-1-71.2 NMSA 1978 [repealed].
Section 7-9-106 - Deduction; construction services and equipment.
Section 7-9-107 - Deduction; gross receipts tax; production or staging of professional contests.
Section 7-9-110.1 - Deduction; gross receipts tax; locomotive engine fuel.
Section 7-9-110.2 - Deduction; compensating tax; locomotive engine fuel.
Section 7-9-110.3 - Purpose and requirements of locomotive fuel deduction.
Section 7-9-111 - Deduction; gross receipts; hearing aids and vision aids and related services.
Section 7-9-112 - Deduction; gross receipts; solar energy systems.
Section 7-9-114 - Advanced energy deduction; gross receipts and compensating taxes.
Section 7-9-116 - Deduction; gross receipts tax; retail sales by certain businesses.
Section 7-9-117 - Deduction; gross receipts; governmental gross receipts; marketplace seller.
Section 7-9-118 - Deduction; gross receipts; food or beverage establishments.
Section 7-9-119 - Deduction; sales made by dispenser's license holder.