New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 201 - NONTAXABLE TRANSACTION CERTIFICATES, FARMERS' AND RANCHERS' STATEMENTS AND OTHER EVIDENCE REQUIRED TO ENTITLE PERSONS TO DEDUCTIONS
Section 3.2.201.9 - APPLICATION FOR AND USE OF NONTAXABLE TRANSACTION CERTIFICATES
Current through Register Vol. 35, No. 18, September 24, 2024
Except as provided in Section 3.2.201.17 NMAC, registration and identification of buyers or lessees who, by reason of their status or the nature of use of the property or service purchased or leased by them, would entitle the vendor or lessor to a deduction from gross receipts with respect to receipts from the purchases or leases of some kind of property or service, and application for department-issued nontaxable transaction certificates (nttcs) is accomplished in the following manner:
A. The buyer or lessee registers with the department for gross receipts tax purposes.
B. The buyer or lessee submits to the department a completed application form indicating the type and quantity of nttc forms required.
C. The department, upon receipt and approval of this application form, will issue the buyer or lessee serially numbered nttc forms.
D. After completion of the information required on the nttc and after proper signature, the buyer or lessee executes the original certificate to the seller or lessor and retains one copy for the buyer's or lessee's records. For all subsequent transactions with that seller or lessor, the buyer or lessee is responsible for informing the seller whenever a particular transaction is not covered by the nttc.
E. When a seller or lessor accepts a nttc form, other than the type the seller or lessor is required to possess to sustain the deduction which the seller or lessor is claiming, the deduction shall not be allowed.
F. Except as provided in Section 3.2.201.17 NMAC, only buyers or lessees who have applied for and have been issued nttcs by the department may execute nttcs. An nttc must be executed on the serially numbered form specifically issued to the buyer or lessee by the department. The department may require a person to whom the department has issued nttcs to account for all nttc forms issued to that person. nttcs may not be executed by anyone other than the person to whom the department has issued these certificates.
G. The buyer or lessee who has an excess of unexecuted nttc forms is required to return them to the department. Upon termination of business, the firm must return all unexecuted nttcs to the department. The department may seize excess unexecuted nttcs which are in the possession of a taxpayer.
