Current through Register Vol. 35, No. 18, September 24, 2024
A.
Dental supplies:
(1) The receipts from selling supplies, gold,
silver and similar items of tangible personal property used in making dentures,
cement used in fillings, amalgam, anesthetics, orthodontia platinum wire,
facing, backing, x-ray film and the like to dentists for use in their practices
are not receipts from selling tangible personal property for resale since it is
not the custom of the dental profession to bill material separately from the
services involved.
(2) The receipts
derived from selling the items mentioned in Paragraph (1) of Subsection A of
Section 3.2.205.14 NMAC may not be deducted from gross receipts pursuant to
Section
7-9-73
NMSA 1978 because the items sold are not prosthetic devices within the meaning
of Section
7-9-73
NMSA 1978.
B.
Medical supplies: Receipts from selling supplies, drugs, bandages,
splints, syringes, tongue depressors, medicine used as injections and other
similar items to practitioners of the healing arts for use in their practices
are not receipts derived from selling tangible personal property for resale
since it is not the custom of such practitioners to bill material separately
from the services involved.
C.
Sale of radioisotopes:
(1)
Receipts from selling radioisotopes to a professional association of medical
radiologists which furnishes a nontaxable transaction certificate (nttc) are
receipts derived from selling tangible personal property for resale since it is
the custom of radiologists to bill these materials separately from the services
involved.
(2) If the radiologists
delivering the nttc do not resell the radioisotopes in the ordinary course of
business, the compensating tax is due.
D.
Issuance of nontaxable transaction
certificates by oncologists: Receipts from selling drugs used in the
treatment of cancer by an oncologist who separately states these items in
billings may be deducted by the seller if the oncologist delivers to the seller
a Type 2 nontaxable transaction certificate (nttc). If the oncologist
delivering the nttc does not sell the items in the ordinary course of business
or does not separately state the charges for the sale price of the items on the
billings, the compensating tax is due. Receipts from the sale of other
tangibles, such as supplies, bandages, syringes, etc., are not
deductible.
E.
Sale of
medicine to veterinarians:
(1) Receipts
from selling drugs, medicine, braces, dressings and other substances and
preparations used in treating animals to a veterinarian who is engaged in the
business of selling such items and who does not administer the items are
receipts derived from selling tangible personal property for resale and may be
deducted by the seller if the veterinarian delivers a Type 2 nontaxable
transaction certificate (nttc). If the veterinarian delivering the nttc does
not resell the above items in the ordinary course of business, the compensating
tax is due.
(2) Receipts from
selling drugs, medicine, braces, dressings and other substances and
preparations used in treating animals to a veterinarian who administers the
items and who separately states these items in the billings may be deducted by
the seller if the veterinarian delivers to the seller a Type 2 nttc because it
is the custom of the trade to separately state these items in billings. If the
veterinarian delivering the nttc does not resell the items in the ordinary
course of business or does not separately state the charges for the sale price
of the items on the billings, the compensating tax is due.
F.
Vitamins and drugs sold to sale
barn: Receipts from selling vitamins and drugs to a person engaged in
the business of conducting a sale barn who administers vitamins and drugs to
livestock consigned to the barn and who bills the consignor of the livestock
for this property without charge for the service of administering the property
are receipts from selling tangible personal property for resale.
