N.M. Admin. Code § 3.2.216.8

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

Section 3.2.216.8 - WRITTEN STATEMENT OF FARMING OR RANCHING

A. Receipts from selling certain items to persons who state in writing that they are regularly engaged in the business of farming or ranching may be deducted from the seller's gross receipts pursuant to Section 7-9-58 NMSA 1978 if the statement:

(1) contains a declaration that the purchaser-signer is regularly engaged in the business of ranching or farming; and

(2) is personally signed by the purchaser or the purchaser's agent who makes the statement; and

(3) is accepted in good faith by the seller.

B. The following sentence is an example of a statement that will be accepted by the department as conclusive evidence that receipts from selling enumerated items to persons signing the statement may be deducted from the seller's gross receipts pursuant to Section 7-9-58 NMSA 1978 if the seller accepted such a statement in good faith. "I swear or affirm that I am regularly engaged in the business of farming or ranching. This declaration is made for the purpose of allowing receipts from selling feed for livestock, fish raised for human consumption, poultry or for animals raised for their hides or pelts, seeds, roots, bulbs, plants, soil conditioners, fertilizers, insecticides, insects used to control populations of other insects, fungicides or weedicides or water for irrigation purposes to be deducted from the gross receipts of the seller pursuant to Section 7-9-58 NMSA 1978."

C. The following statement signed by the purchaser or authorized agent is insufficient as a statement in writing that a person is regularly engaged in the business of farming or ranching as required by Section 7-9-58 NMSA 1978. "I hereby certify the product or products purchased are for agricultural use only."

D. Receipts from selling any of the items mentioned in Section 7-9-58 NMSA 1978 may not be deducted from gross receipts unless the sale is made to a person who makes a written statement which is in compliance with Section 3.2.216.8 NMAC.

E. For the purposes of Section 7-9-58 NMSA 1978 it is sufficient if the seller receives one written statement from each purchaser, provided the seller maintains that statement on file.

N.M. Admin. Code § 3.2.216.8

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; 3.2.216.8 NMAC - Rn, 3 NMAC 2.58.8 & A, 6/14/01