A. Except as provided otherwise in Subsection B of this section, receipts from leasing tangible personal property or licenses may be deducted from gross receipts if the lease is made to a lessee who delivers a nontaxable transaction certificate to the lessor or provides alternative evidence pursuant to Section 7-9-43 N.M. Stat. Ann.. The lessee may not use the tangible personal property or license in any manner other than for subsequent lease in the ordinary course of business.

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Terms Used In New Mexico Statutes 7-9-50

  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Personal property: All property that is not real property.

B. The deduction provided by this section does not apply to receipts from leasing: (1)     furniture or appliances, the receipts from the rental or lease of which are deductible under Subsection C of Section 7-9-53 N.M. Stat. Ann.; (2)     coin-operated machines; or

(3)     manufactured homes.