N.M. Stat. § 7-9-51 (2026)

to persons engaged in the construction business.
     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 NMSA 1978.

   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.

History: 1953 Comp., § 72-16A-14.6, enacted by Laws 1969, ch. 144, § 41; 2000, ch.
84, § 3; 2000, ch. 98, § 1; 2001, ch. 343, § 4; 2021, ch. 65, § 18.

                                     ANNOTATIONS

The 2021 amendment, effective July 1, 2021, provided that a taxpayer may provide the
taxation and revenue department alternative evidence to claim a gross receipts tax
deduction in lieu of providing a non-taxable transaction certificate; in Subsection A, after
"certificate to the seller", added "or provides alternative evidence pursuant to Section 7-
9-43 NMSA 1978"; and in Subsection B, after "buyer", deleted "delivering the
nontaxable transaction certificate".

The 2001 amendment, effective July 1, 2001, substituted "construction material" for
"tangible personal property" in Subsections A and B.

The 2000 amendment, effective March 7, 2000, added Subsection B(3).

"Engaged in the construction business." — Since taxpayer constructed a hotel in
this state, and taxpayer held a contractor's license and held itself out to the public as a
contractor, there was sufficient evidence to conclude that taxpayer was "engaged in the
construction business." Continental Inn of Albuquerque, Inc. v. N.M. Taxation &
Revenue Dep't, 1992-NMCA-030, 113 N.M. 588, 829 P.2d 946.

Proper issuance of nontaxable transaction certificate. — The deduction from gross
receipts pursuant to this section and 7-9-52 NMSA 1978 is not conditioned upon proper
issuance of the nontaxable transaction certificates (NTTC) by the buyer. The
determination of whether a NTTC has been properly issued is a matter between the
department and the buyer. Continental Inn of Albuquerque, Inc. v. N.M. Taxation &
Revenue Dep't, 1992-NMCA-030, 113 N.M. 588, 829 P.2d 946.

Message to seller that seller is entitled to deductions. — The timely delivery of a
nontaxable transaction certificate (NTTC) from the buyer to the seller conveys a
message to the seller that the use of the NTTC's is such that the seller is entitled to
deductions under this section or 7-9-52 NMSA 1978 when taxpayer issued NTTC's to
the subcontractors; taxpayer, in essence, represented to the subcontractors that the use
of the NTTC's was such that the subcontractors were entitled to deductions from the
gross receipts tax. Continental Inn of Albuquerque, Inc. v. N.M. Taxation & Revenue
Dep't, 1992-NMCA-030, 113 N.M. 588, 829 P.2d 946.
7-9-51.1. Repealed.
                                      ANNOTATIONS

Repeals. — Laws 1995, ch. 50, § 6, repealed 7-9-51.1 NMSA 1978, as enacted by
Laws 1993, ch. 31, § 14, relating to gross receipts tax deductions for railway bed
materials, effective July 1, 2003. For provisions of former section, see the 2002 NMSA
1978 on NMOneSource.com.