N.M. Stat. § 7-9-56 (2026)

services in interstate commerce.
    A. Receipts from transporting persons or property from one point to another in this
state may be deducted from gross receipts when such persons or property, including
any special or extra service reasonably necessary in connection therewith, is being
transported in interstate or foreign commerce under a single contract.

    B. Receipts from handling, storage, drayage or packing of property or any other
accessorial services on property, which property has moved or will move in interstate or
foreign commerce, when such services are performed by a local agent for a carrier or
by a carrier and when such services are performed under a single contract in relation to
transportation services, may be deducted from gross receipts.

   C. Receipts from providing telephone or telegraph services in this state that will be
used by other persons in providing telephone or telegraph services to the final user may
be deducted from gross receipts.

History: 1978 Comp., § 7-9-56, enacted by Laws 1994, ch. 112, § 2.

                                    ANNOTATIONS

Repeals and reenactments. — Laws 1994, ch. 112, § 2 repealed 7-9-56 NMSA 1978,
as amended by Laws 1994, ch. 112, § 1, and enacted a new section, effective July 1,
2001.

To deduct receipts under Subsection A, taxpayer is required to show three items: (1)
the receipts must be from transporting persons from one point to another in this state,
(2) the transportation must have been in interstate commerce and (3) the transportation
must have been under a single contract. McKinley Ambulance Serv. v. Bureau of
Revenue, 1979-NMCA-026, 92 N.M. 599, 592 P.2d 515.

Intrastate transportation receipts not deductible. — Transportation into one state
from another is the indispensable test of interstate commerce. That there is both
intrastate and interstate transportation under a single contract does not authorize a
deduction under Subsection A for receipts attributable to the intrastate transportation.
McKinley Ambulance Serv. v. Bureau of Revenue, 1979-NMCA-026, 92 N.M. 599, 592
P.2d 515.