New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS
Section 3.2.204.8 - MOTOR VEHICLE PARTS

Receipts from the sale of parts, to be used in the repair of used motor vehicles or other items of equipment which are held by the purchaser of the parts for sale in the ordinary course of a used car or used equipment business, or to be used to fulfill the dealer's warranty obligation on used motor vehicles or other items of equipment, are deductible from the seller's gross receipts provided the purchaser gives the seller a nontaxable transaction certificate. The purchaser must use the parts in the nontaxable manner indicated on the certificate or be liable for the compensating tax.