Section 7-9-96 - Credit; gross receipts tax; governmental gross receipts tax; certain sales for resale. - New Mexico Statutes

7-9-96. Credit; gross receipts tax; governmental gross receipts tax; certain sales for resale.

A.     A taxpayer may claim a credit against gross receipts tax or governmental gross receipts tax due for each reporting period beginning after June 2005 in an amount equal to ten percent of the receipts from selling a service for resale multiplied by:

(1)     three and seven hundred seventy-five thousandths percent if the taxpayer's business location is within a municipality; or

(2)     five percent if the taxpayer's business location is in the unincorporated area of a county.

B.     A taxpayer may claim a credit pursuant to Subsection A of this section only if:

(1)     the buyer resells the service in the ordinary course of business;

(2)     the resale is not subject to the gross receipts tax or the governmental gross receipts tax; and

(3)     the buyer delivers to the seller documentation in a form prescribed by the department clarifying that the service is purchased for resale in the ordinary course of business.

C.     A credit permitted pursuant to this section does not apply to receipts from selling a service to a governmental entity or to a person who is a prime contractor that operates a facility in New Mexico designated as a national laboratory by an act of congress.