Section 7-9-51 - Deduction; gross receipts tax; sale of construction material to persons engaged in the construction business. - New Mexico Statutes

7-9-51. Deduction; gross receipts tax; sale of construction material 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.   

B.     The buyer delivering the nontaxable transaction certificate 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.