A. Receipts from selling construction material may be deducted from gross receipts if the sale is made to a person engaged in the construction business who delivers a nontaxable transaction certificate to the seller or provides alternative evidence pursuant to Section 7-9-43 N.M. Stat. Ann..

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Terms Used In New Mexico Statutes 7-9-51

  • 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.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.

B. The buyer must incorporate the construction material as:

(1)     an ingredient or component part of a construction project that is subject to the gross receipts tax upon its completion or upon the completion of the overall construction project of which it is a part;

(2)     an ingredient or component part of a construction project that is subject to the gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed; or

(3)     an ingredient or component part of a construction project that is located on the tribal territory of an Indian nation, tribe or pueblo.