N.M. Admin. Code § 3.2.205.11

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

Section 3.2.205.11 - SALE OF TANGIBLE PERSONAL PROPERTY TO A FEDERAL CONTRACTOR OR SUBCONTRACTOR

A. Receipts from selling tangible personal property to a federal contractor or subcontractor may be deducted from the seller's gross receipts if the federal contractor or subcontractor issues a Type 15 nontaxable transaction certificate (nttc) to the seller. The federal contractor or subcontractor is authorized to issue a Type 15 nttc only if the federal contract number is entered on the appropriate line of the Type 15 nttc and all of the criteria contained in the agreement between New Mexico and the U.S. Government are met and if the contracting agency is one of the United States agencies signatory to the agreement.

B. If the federal contractor or subcontractor issuing the Type 15 nttc does not meet the criteria outlined in the agreement, it shall be liable for compensating tax on the value of the tangible personal property. A federal contractor or subcontractor may not issue a Type 15 nttc for the purchase of services.

1/14/86, 4/2/86, 11/26/90, 11/15/96; 3.2.205.11 NMAC - Rn, 3 NMAC 2.47.11 & A, 5/31/01