New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 206 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF A SERVICE FOR RESALE
Section 3.2.206.20 - TELECOMMUNICATIONS SERVICES
Universal Citation: 3 NM Admin Code 3.2.206.20
Current through Register Vol. 35, No. 18, September 24, 2024
A. Cable television hook-up. Receipts from selling the service of hook-ups to cable television for resale may be deducted from gross receipts if the sale is made to a buyer who delivers a nontaxable transaction certificate (nttc) to the seller. The subsequent sale must be in the ordinary course of business and the receipts subject to the gross receipts tax. This version of Subsection A of Section 3.2.206.20 NMAC applies to transactions occurring on or after July 1, 2000.
B. Telephone services.
(1) Receipts
of a telephone company from the performance of telephone services for a hotel
or motel, to the extent that they are attributable to calls made from the rooms
of the hotel's or motel's guests, may be deducted from gross receipts if the
hotel or motel delivers a nontaxable transaction certificate (nttc) to the
telephone company. The charge must be subject to the gross receipts tax or the
hotel or motel will be subject to the compensating tax on the value of the
telephone services.
(2) In order to
apportion the use of telephone service at a hotel or motel between local calls
made from the rooms of the hotel's or motel's guests and other local calls made
from the hotel or motel, the department will, on audit of the telephone company
claiming the deduction described in the preceding paragraph, allow as a
deduction that portion of the receipts of the telephone company which are
calculated in the following manner with respect to the month's billing to the
hotel or motel:
(a) the telephone company's
receipts from charges, indicated on its billing to the hotel or motel, as local
service and additional local call and message units, which represent local
telephone service are calculated; and
(b) the total calculated in Subparagraph (a)
of Paragraph (2) of Subsection B of Section 3.2.206.20 NMAC is multiplied by a
fraction, the numerator of which is the number of message units, as the term is
used by the telephone company, indicated on its billing to the hotel or motel
which represent local telephone calls which were made from the hotel or motel
and the denominator of which is the total of message units, as the term is used
by the telephone company, indicated on the telephone company's billing to the
hotel or motel.
(3) The
method set forth in Paragraph (2) of Subsection B of Section 3.2.206.20 NMAC is
acceptable to the department as an "apportionment of use". However, other
methods which more accurately reflect the apportionment of use may be
acceptable to the department.
(4)
Example: X is engaged in the business of selling alarm systems
in New Mexico. As a part of these systems, a telephone line is leased by X from
Y, a telephone company. Y bills X for each line on a monthly basis. X bills
each customer on a monthly basis for service plus a telephone line charge.
Receipts of Y from the performance of the telephone service for X may be
deducted from Y's gross receipts if X delivers a type 5 nttc to Y. Receipts of
X from its customers must be subject to the gross receipts tax, or X will be
liable for the compensating tax on the value of the telephone services at the
time they were rendered.
(5) This
version of Subsection B of Section 3.2.206.20 NMAC applies to transactions
occurring on or after July 1, 2000.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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