N.M. Admin. Code § 3.2.209.11
Current through Register Vol. 35, No. 23, December 10, 2024
Receipts from selling water to a construction company 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 or alternative evidence and if the water becomes an ingredient or component part of the finished product such as in concrete or in moistening fill. However, if the water is used as merely a lubricating agent, such as in well drilling, it is not a component part of the finished product and the receipts are not deductible.
N.M. Admin. Code § 3.2.209.11