New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 205 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR RESALE
Section 3.2.205.15 - FOOD AND RELATED SUPPLIES

Universal Citation: 3 NM Admin Code 3.2.205.15

Current through Register Vol. 35, No. 18, September 24, 2024

A. Sale of food: Receipts from the sale of food to a person engaged in the business of operating a nursing home, day care facility, kindergarten or a facility for retired elderly persons may be deducted from gross receipts if the person delivers a nontaxable transaction certificate to the seller. The person engaged in the business of operating a nursing home, day care facility, kindergarten or a facility for retired elderly persons must resell the food either by itself or in combination with other tangible personal property in the ordinary course of business or be subject to the compensating tax for the value of the food.

B. Sale of food to certain nonprofit organizations: Receipts from selling food and beverages to a nonprofit organization which furnishes meals to persons who pay a boarding fee may be deducted from gross receipts if the buyer delivers a nontaxable transaction certificate to the seller pursuant to Section 7-9-47 NMSA 1978.

C. Sale of animal food:

(1) Receipts from selling animal food, animal accessories and similar items of tangible personal property to a veterinarian who is engaged in the business of selling such items may be deducted from gross receipts if the buyer delivers a nontaxable transaction certificate (nttc) to the seller pursuant to Section 7-9-47 NMSA 1978.

(2) If the veterinarian delivering the nttc does not resell the items mentioned in Paragraph (1) of Subsection C of Section 3.2.205.15 NMAC in the ordinary course of business, the compensating tax is due.

D. Restaurants - nonreuseable items - supplies: Receipts from the sale of straws, toothpicks, coffee stirrers, coffee coasters, steak markers, paper doilies, paper mats, paper napkins, menus which normally are retained by the customer, nonreturnable food containers, including disposable plastic or paper cups, plates, spoons, forks and knives as well as receipts from the sale of materials used to wrap food, such as aluminum foil, plastic wrap and wax paper may be deducted from gross receipts if the sale is made to a person, e.g., a restaurant, who delivers a nontaxable transaction certificate (nttc) to the seller. The buyer delivering the nttc must resell the item purchased either by itself or in combination with other tangible personal property in the ordinary course of business or become liable for compensating tax on the value of the item purchased. Receipts from selling garbage can liners, paper hats, aprons and uniforms used by restaurant personnel, guest checks, candles, fuel for candle burners, sterno, janitorial supplies, toilet tissue and paper towels may not be deducted from gross receipts. Such items are not resold by the buyer.

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