N.M. Stat. § 7-9-53 (2026)

and lease of manufactured homes.
   A. Receipts from the sale or lease of real property and from the lease of a
manufactured home as provided in Subsection B of this section, other than receipts
from the sale or lease of oil, natural gas or mineral interests exempted by Section 7-9-
32 NMSA 1978, may be deducted from gross receipts. However, that portion of the
receipts from the sale of real property which is attributable to improvements constructed
on the real property by the seller in the ordinary course of his construction business may
not be deducted from gross receipts.

   B. Receipts from the rental of a manufactured home for a period of at least one
month may be deducted from gross receipts. Receipts received by hotels, motels,
rooming houses, campgrounds, guest ranches, trailer parks or similar facilities, except
receipts received by trailer parks from the rental of a space for a manufactured home or
recreational vehicle for a period of at least one month, from lodgers, guests, roomers or
occupants are not receipts from leasing real property for the purposes of this section.

    C. Receipts attributable to the inclusion of furniture or appliances furnished as part
of a leased or rented dwelling house, manufactured home or apartment by the landlord
or lessor may be deducted from gross receipts.

History: 1953 Comp., § 72-16A-14.8, enacted by Laws 1969, ch. 144, § 43; 1972, ch.
80, § 3; 1973, ch. 205, § 1; 1975, ch. 160, § 3; 1979, ch. 338, § 5; 1983, ch. 220, § 11;
1991, ch. 203, § 5; 1998, ch. 94, § 1.

                                     ANNOTATIONS

Cross references. — For deduction of real estate commissions from gross receipts tax,
see 7-9-66.1 NMSA 1978.

The 1998 amendment, effective April 1, 1998, inserted "or recreational vehicle" near
the middle of the second sentence in Subsection B.

The 1991 amendment, effective July 1, 1991, substituted "manufactured" for "mobile"
in the section heading and throughout the section.

Contract for correctional services not a lease. — Where a contract for correctional
services provided that the contractor was paid based on the number of inmates housed
and that the contractor had the right to fill up unoccupied space with inmates from other
jurisdictions, the contract was not a lease for real property. Corrections Corp. of Am. v.
State of N.M., 2007-NMCA-148, 142 N.M. 779, 170 P.3d 1017.

Receipts attributable to improvements. — Real estate developer was not entitled to
deduction for receipts from the sale of real estate attributable to improvements made on
the land since those improvements were completed prior to the effective date of this
section but sale was not made until after effective date, as the plain language of this
section shows a legislative intent not to allow a deduction on receipts from sale of real
property attributable to such improvements. Doña Ana Dev. Corp. v. Commissioner of
Revenue, 1973-NMCA-018, 84 N.M. 641, 506 P.2d 798.

Monies not received from lease of real property. — The receipts, which this section
declares not to be "receipts from leasing real property," are clearly intended to mean the
monies or rentals normally received by operators of hotels, motels, etc., when being
operated as such in their customary and ordinary manner, from the lodgers, guests,
roomers and occupants thereof. Chavez v. Commissioner of Revenue, 1970-NMCA-
116, 82 N.M. 97, 476 P.2d 67.

"Lease" not "license". — An arrangement between the owner of several properties
used as bingo halls and the non-profit organizations who operated the bingo games was
a lease and not a license where the organizations were required to pay rent, they were
granted exclusive possession of certain facilities on the premises and the use of the
facilities at certain times, and the owner could not revoke the agreement at will;
although the arrangement was not a typical lease, restrictions in the Bingo and Raffle
Act [repealed] accounted for the type of arrangement created and to deny that this was
a lease would have made it impossible for bingo operators to enter arrangements that
would qualify as leases. Quantum Corp. v. Taxation & Revenue Dep't, 1998-NMCA-050,
125 N.M. 49, 956 P.2d 848.

"License" not "lease". — The buy-down contract payments were reimbursements to
the taxpayer for her sales loss incurred as a result of engaging in the discount
promotions and where the shelf-display contract receipts were taxable pursuant to this
section because those contracts bore a much greater resemblance to a license than to
the creation and conveyance of an interest in real property that would have constituted
a lease. Grogan v. N.M. Taxation & Revenue Dep't, 2003-NMCA-033, 133 N.M. 354, 62
P.3d 1236, cert. denied, 133 N.M. 413, 63 P.3d 516.

Yearly lease of motel. — Since taxpayers leased motel to a railway on an annual basis
at a fixed rental, having no relationship to whether the railway company let the rooms to
lodgers, guests or roomers, the rental received by the taxpayer was not income
received from lodgers, guests or roomers, but was income by way of rental received
from the lessee railway for the entire premises, and was deductible from gross receipts.
Chavez v. Commissioner of Revenue, 1970-NMCA-116, 82 N.M. 97, 476 P.2d 67.

Receipts from license agreements not deductible. — Agreements between the
taxpayer and several other companies providing for the use of space in the taxpayer's
department stores for the purpose of retailing certain items, which agreements
expressly negatived the intention to create a lease, constituted licenses, the money
from selling which was not deductible from the gross receipts tax under this section.
S.S. Kresge Co. v. Bureau of Revenue, 1975-NMCA-015, 87 N.M. 259, 531 P.2d 1232.

Law reviews. — For article, "The Deductibility for Federal Income Tax Purposes of the
New Mexico Gross Receipts Tax Paid on the Purchase of a Newly Constructed Home,"
see 13 N.M.L. Rev. 625 (1983).