N.M. Admin. Code § 3.2.205.8

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

Section 3.2.205.8 - DELIVERY OF THE NONTAXABLE TRANSACTION CERTIFICATE

A. In order for a taxpayer to qualify for the deduction provided in Section 7-9-47 NMSA 1978 the taxpayer must meet the requirements of Section 7-9-47 NMSA 1978, which include being the recipient of a nontaxable transaction certificate (nttc) of the type specified and furnished by the department to be delivered by a buyer who resells tangible personal property in the ordinary course of business. Other evidence in lieu of an appropriate nttc may be acceptable as provided in Section 7-9-43 NMSA 1978 and 3.2.201.10 NMAC.

B. Example: X, a retail grocer, buys $150 worth of brooms from Y. X, however, will not give Y a nttc. The sale from Y to X is a taxable transaction since X did not give Y a nttc. If X had presented the certificate, Y could have deducted the proceeds of the sale from Y's gross receipts.

9/29/67, 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; 3.2.205.8 NMAC - Rn, 3 NMAC 2.47.8 & A, 5/31/01; A, 8/15/11