New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 12 - LIABILITY OF USER FOR PAYMENT OF COMPENSATING TAX
Section 3.2.12.9 - GENERAL EXAMPLE
Universal Citation: 3 NM Admin Code 3.2.12.9
Current through Register Vol. 35, No. 18, September 24, 2024
A. The following example illustrates the application of Section 7-9-9 NMSA 1978.
B. Example: A purchases a piece of equipment from X, an El Paso dealer, for $1,000. X is registered with the department as an agent for collection of compensating tax. X bills A as follows:
|
Equipment |
$ 1,000 |
|
N.M. Comp. Tax |
50 |
|
$ 1,050 |
Since X is registered as an agent to collect and pay over compensating tax pursuant to Section 7-9-10 NMSA 1978 and collected compensating tax from A, A is relieved of any compensating tax liability, even if X fails to remit the tax to the department.
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