New Mexico Administrative Code
Title 3 - TAXATION
Chapter 11 - MOTOR VEHICLE TAXES AND FEES
Part 4 - SALE OR TRANSFER OF VEHICLES
Section 3.11.4.13 - TRADE-INS

A. In determining taxable value, Section 7-14-4 NMSA 1978 allows the value of "vehicle trade-ins" to be deducted from the price paid for, or the reasonable value of, a purchased vehicle. Only the value of vehicles may be deducted but, except as provided otherwise in 3.11.4.13 NMAC, the value of any vehicle traded-in on the purchase of any other vehicle may be deducted. For example, the value of a horse traded-in for a vehicle may not be deducted from the price paid for, or reasonable value of, the vehicle. A horse is not a vehicle. As another example, the value of a recreational vehicle traded-in may be deducted in determining the taxable value of a purchased truck. Both are vehicles.

B. Because the motor vehicle excise tax is not imposed on manufactured homes, the value of a manufactured home trade-in on the purchase of a vehicle other than a manufactured home may not be deducted in determining the taxable value of the purchased vehicle. For the same reason, when the owner of a vehicle whose liability for the motor vehicle excise tax was suspended pursuant to Section 7-14-7.1 NMSA 1978 trades the vehicle in on the purchase of another vehicle, the owner may not deduct the value of the trade-in vehicle in the determining the taxable value of a purchased vehicle.