New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 200 - LOCAL OPTION TAXES
Section 3.2.200.8 - FEDERAL PREEMPTION OF LOCAL TAXES
Current through Register Vol. 35, No. 18, September 24, 2024
A. Section 602 of the Federal Telecommunications Act of 1996 preempts the imposition of any local option gross receipts tax upon the gross receipts of a provider of direct satellite service from providing direct satellite service. Accordingly, no portion of any local option tax may be imposed on such services. Only the state tax imposed by Section 7-9-4 NMSA 1978 is due with respect to receipts from providing these services.
B. Because imposition of all local option taxes is prohibited, the credit provided in Section 7-9-82 NMSA 1978 does not apply against the state tax due on receipts from providing direct satellite services.
C. The term "direct satellite service" means "direct-to-home satellite service" as defined by Section 602 of the Telecommunications Act of 1996.
D. This section applies to direct-to-home satellite services provided on or after February 8, 1996.
