New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 207 - DEDUCTION - GROSS RECEIPTS TAX - SALE OF TANGIBLE PERSONAL PROPERTY FOR LEASING
Section 3.2.207.9 - AUTOMOBILE LEASING
Current through Register Vol. 35, No. 18, September 24, 2024
The receipts from selling tires, engine repair parts, and similar items to a lessor who uses these items in the maintenance of vehicles held for lease or leased may be deducted from gross receipts if the lessor delivers a nontaxable transaction certificate to the seller. Unless the lessor meets the following conditions the lessor will be subject to compensating tax on the value of these items:
A. the parts are used by the lessor on vehicles held for lease, leased or held for sale and the receipts from leasing or selling vehicles are a substantial portion of the lessor's receipts; and
B. the maintenance of the vehicles is performed at no additional cost to the lessee of these vehicles under the lease agreement; and
C. the lessor does not use the vehicles or parts in any manner other than holding them for lease or sale or leasing or selling them either by themselves or in combination with other tangible personal property in the ordinary course of business.
