New Mexico § 7-1-14 - Reporting location instructions for purposes of reporting gross receipts and use; location-code database and location-rate database

§ 7-1-14. Reporting location instructions for purposes of reporting gross receipts and use; location-code database and location-rate database

A. For purposes of the Gross Receipts and Compensating Tax Act, Interstate Telecommunications

Gross Receipts Tax Act, Leased Vehicle Gross Receipts Tax Act and any act authorizing

the imposition of a local option gross receipts or compensating tax, a taxpayer that

has gross receipts and a taxpayer using property or services in New Mexico in a taxable

manner shall report the gross receipts and use to the proper reporting location as

provided in this section. B. The reporting location for gross receipts from the sale, lease or granting of a

license to use real property located in New Mexico, and any related deductions, shall

be the location of the property. C. The reporting location for gross receipts from the sale or license of property,

other than real property, and any related deductions, shall be at the following locations: (1) if the property is received by the purchaser at the New Mexico location of the

seller, the location of the seller; (2) if the property is not received by the purchaser at the location of the seller,

the location indicated by instructions for delivery to the purchaser, or the purchaser's

donee, when known to the seller; (3) if Paragraphs (1) and (2) of this subsection do not apply, the location indicated

by an address for the purchaser available from the business records of the seller

that are maintained in the ordinary course of business; provided that use of the

address does not constitute bad faith; (4) if Paragraphs (1) through (3) of this subsection do not apply, the location for

the purchaser obtained during consummation of the sale, including the address of a

purchaser's payment instrument, if no other address is available; provided that use

of this address does not constitute bad faith; or (5) if Paragraphs (1) through (4) of this subsection do not apply, including a circumstance

in which the seller is without sufficient information to apply those standards, the

location from which the property was shipped or transmitted. D. The reporting location for gross receipts from the lease of tangible personal property,

including vehicles, other transportation equipment and other mobile tangible personal

property, and any related deductions, shall be the location of primary use of the

property, as indicated by the address for the property provided by the lessee that

is available to the lessor from the lessor's records maintained in the ordinary course

of business; provided that use of this address does not constitute bad faith. The location of primary use shall not be altered by intermittent use at different

locations, such as use of business property that accompanies employees on business

trips and service calls. E. The reporting location for gross receipts from the sale, lease or license of franchises,

and any related deductions, shall be where the franchise is used. F. The reporting location for gross receipts from the performance or sale of the following

services, and any related deductions, shall be at the following locations: (1) for professional services performed in New Mexico, other than construction-related

services, or performed outside New Mexico when the product of the service is initially

used in New Mexico, the location of the performer of the service or seller of the

product of the service, as appropriate; (2) for construction services and construction-related services performed for a construction

project in New Mexico, the location of the construction site; (3) for services with respect to the selling of real estate located in New Mexico,

the location of the real estate; (4) for transportation of persons or property in, into or from New Mexico, the location

where the person or property enters the vehicle; and (5) for services other than those described in Paragraphs (1) through (4) of this

subsection, the location where the product of the service is delivered. G. Except as provided in Subsection H of this section, the reporting location for

uses of property or services subject to the compensating tax shall be the location

at which gross receipts would have been required to be reported had the transaction

been subject to the gross receipts tax. H. If a taxpayer subject to the compensating tax can demonstrate that the first use

upon which compensating tax is imposed occurred at a time and place different from

the time and place of the purchase, then the reporting location for the compensating

tax shall be the location of the first use. I. The secretary shall develop a location-code database that provides the reporting

location codes designated by the secretary. The secretary shall also develop and provide to taxpayers a location-rate database

that sets out the tax rates applicable to reporting locations within the state, by

address, and sellers who properly rely on this database shall not be liable for any

additional tax due to the use of an incorrect rate. J. As used in this section: (1) “ gross receipts ” means, as applicable, “gross receipts” as used in the Gross Receipts and Compensating

Tax Act and the Leased Vehicle Gross Receipts Tax Act and “interstate telecommunications

gross receipts” in the Interstate Telecommunications Gross Receipts Tax Act; (2) “ in-person service ” means a service physically provided in person by the service provider, where the

customer or the customer's real or tangible personal property upon which the service

is performed is in the same location as the service provider at the time the service

is performed; and (3) “ professional service ” means a service, other than an in-person service, that requires either an advanced

degree from an accredited post-secondary educational institution or a license from

the state to perform.