New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 204 - DEDUCTION - GROSS RECEIPTS TAX - SALES TO MANUFACTURERS
Section 3.2.204.9 - PRINTING AND SILK-SCREENING
Current through Register Vol. 35, No. 18, September 24, 2024
A. Paper, ink, staples, glue, binding, chemicals, dyes and other tangible property used by a printer or a silk-screener in the production of a newspaper or other printed or silk-screened material for sale in the ordinary course of business are ingredients or component parts of a manufactured product. If all paper, ink, staples, glue, binding, chemicals, dyes and other tangible items are furnished to the printer or silk-screener by the customer as ingredients or component parts of the end product, then the printer or silk-screener is providing a service and not selling tangible personal property.
B. Example: N, a newspaper supply company, sells newsprint (paper), ink, offset plates, lithographic plates, linotype plates, lead plates, pre-cast type plates and photographic plates to newspapers. The newsprint and ink are ingredients or component parts because, when combined, they can be found in the product which is being manufactured. However, the various plates are not ingredients or component parts because they cannot be found in the manufactured product, the newspaper.
