New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 237 - DEDUCTION - COMPENSATING TAX
Section 3.2.237.8 - GENERAL EXAMPLE
Universal Citation: 3 NM Admin Code 3.2.237.8
Current through Register Vol. 35, No. 18, September 24, 2024
A. The following example illustrates the application of Section 7-9-77 NMSA 1978.
B. Example: Y charters an airplane from X, an out-of-state airplane dealer. The charter is for one month. After one week Y decides to buy the airplane. X allows Y a "trade-in" for the remaining three weeks of Y's charter. Y cannot deduct the value of this "trade-in" from the value of the airplane in computing the compensating tax due. The "trade-in" was not tangible personal property.
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