New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX
Section 3.2.212.8 - LEASING OF TANGIBLE PERSONAL PROPERTY TO A GOVERNMENTAL AGENCY
Current through Register Vol. 35, No. 18, September 24, 2024
A. The receipts from the leasing of tangible personal property to a governmental agency are not deductible pursuant to Section 7-9-54 NMSA 1978. Only receipts from selling tangible personal property to a governmental agency are deductible.
B. Example 1: B rents computers to the United States for use in New Mexico. B contends that the gross receipts from these rentals are deductible for the purpose of computing gross receipts tax. The receipts are not deductible. Only receipts from selling tangible personal property to the United States are deductible.
C. Example 2: A county election board made the decision that in the last election they would use Q's electronic voting system. Because the county is small and the system is very new and expensive, the parties agreed to lease the equipment. All the installation and supplies were provided by Q under the contract. Q deducted the receipts from the transaction. The deduction is not allowable under Section 7-9-54 NMSA 1978 because this is not a sale of tangible personal property to a political subdivision of the state of New Mexico.
