New Mexico § 7-1-21.1 - Special agreements; alternative gross receipts taxpayer

§ 7-1-21.1. Special agreements; alternative gross receipts taxpayer

A. To allow the payment of gross receipts tax by a person who is not the liable taxpayer,

the secretary may approve a request by a person to assume the liability for gross

receipts tax or governmental gross receipts tax owed by another provided that the

person requesting approval agrees to assume the rights and responsibilities as taxpayer

pursuant to the Tax Administration Act for: (1) an agreement to collect and pay over taxes for persons in a business relationship,

which is an agreement that may be entered into by persons who wish to remit gross

receipts tax on behalf of another person with whom the taxpayer has a business relationship; (2) an agreement to collect and pay over taxes for a direct sales company: (a) which agreement may be entered into by a direct sales company that has distributors

of tangible personal property in New Mexico; and (b) in which the direct sales company agrees to pay the gross receipts tax liability

of the distributor at the same time the company remits its own gross receipts tax;

and (3) a manufacturer's agreement to pay gross receipts tax or governmental gross receipts

tax on behalf of a utility company, which agreement: (a) allows a person engaged in manufacturing in New Mexico to pay gross receipts tax

or governmental gross receipts tax on behalf of a utility company on receipts from

sales of utilities that are: 1) not consumed in the manufacturing process; or 2)

not otherwise deductible; and (b) is only applicable to transactions between a manufacturer and a utility company

that are associated with the gross receipts tax deduction pursuant to Subsection B of Section 7-9-46 NMSA 1978 . B. To enter into the agreements authorized in this section, a person shall complete

a form prescribed by the secretary and provide any additional information or documentation

required by department rules or instructions that will assist in the approval of agreements

listed in Subsection A of this section. C. Once approved, an agreement shall be effective only for the period of time specified

in each agreement. Any person entering into an agreement to pay tax on behalf of another person shall

fulfill all of the requirements set out in the agreement. Failure to fulfill all of the requirements set out in the agreement may result in

the revocation of the agreement by the department. An approved agreement may only be revoked prior to expiration by written notification

to all persons who are party to the agreement and shall be applied beginning on the

first day of a month that occurs at least one month following the date on which the

agreement is revoked. D. A person approved by the secretary to pay the gross receipts tax or governmental

gross receipts tax pursuant to Subsection A of this section shall be deemed to be

the taxpayer with respect to that tax pursuant to the Tax Administration Act with

respect to all rights and responsibilities related to that tax, except that: (1) the person shall not be entitled to take any credit against the tax for which

the person has assumed liability pursuant to this section; and (2) the person shall not claim a refund of tax on the basis that the person is not

statutorily liable to pay the tax. E. The department shall relieve from liability and hold harmless from the payment

of a tax assumed by another person pursuant to an agreement approved pursuant to this

section a taxpayer that would otherwise be liable for that tax.