New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 209 - GOVERNMENTAL GROSS RECEIPTS
Section 3.2.209.8 - ITEMS THAT ARE NOT INGREDIENT OR COMPONENT PARTS - OIL FIELD
Current through Register Vol. 35, No. 18, September 24, 2024
Receipts from the sale of the following items may not be deducted from gross receipts since these items do not become ingredient or component parts of a construction project within the meaning of Section 7-9-51 NMSA 1978:
A. drilling equipment, including derricks, blocks, substructures, draw-works, flooring, rotary tables, engines, mud pumps, pipe racks, tanks, doghouses, hoses, water and fuel lines, water well equipment, blowout preventers and other drilling equipment and tools;
B. drill stems, drill collars, subs and kelly;
C. drilling bits, core bits and barrels;
D. fishing tools;
E. fuels, including natural gas, LPG, diesel and electricity; and
F. drilling fluids, including mud, additives, air and lost circulation materials.