New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 228 - DEDUCTION - GROSS RECEIPTS TAX - WARRANTY OBLIGATIONS
Section 3.2.228.11 - RECEIPTS FROM CO-PAYMENTS/DEDUCTIBLES UNDER WARRANTIES

The dealer's receipts from the "co-payment" or "deductible" amount paid to the dealer by the purchaser as required by some manufacturers' warranties are gross receipts and not deductible from gross receipts under Section 7-9-68 NMSA 1978 since the receipts from the purchaser are not receipts from furnishing goods or services to fulfill the manufacturer's obligation. The manufacturer's obligation under such a warranty is limited to the charge for the goods and services minus the required co-payment or deductible.