New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 106 - EXEMPTION - GROSS RECEIPTS TAX - AGRICULTURAL PRODUCTS
Section 3.2.106.13 - GENERAL EXAMPLES
Current through Register Vol. 35, No. 18, September 24, 2024
The following examples illustrate the application of Section 7-9-18 NMSA 1978:
A. Example 1: B is engaged in the business of trading horses. B buys a horse from M, keeps the horse for two days and then sells it to W. B contends that the gross receipts which are derived from the transaction are exempt under Section 7-9-18 NMSA 1978. B does not have to pay gross receipts tax measured by the total receipts which are received from the sale of the horse. B is a producer of livestock for the purposes of Section 7-9-18 NMSA 1978 since B buys and sells livestock on B's own account.
B. Example 2: A owns a herd of dairy cattle. A milks them and sells the milk from door to door. A's dairy products are sold at retail and therefore A's receipts are not exempt.
