Chapter 3.15
MUNICIPAL GROSS RECEIPTS TAX
Sections:
3.15.020 Declaration of intent and purpose.
3.15.060 Separately stating the municipal gross receipts tax.
3.15.100 Suspension of the right to use a nontaxable transaction certificate.
3.15.120 Bureau as agent for collection – Municipality liable on refunds.
3.15.010 Title.
This chapter may be cited as the Village of Cimarron municipal supplemental gross receipts tax ordinance. [Ord. 107A § 1, 1978; Ord. 99 § 1, 1975].
3.15.020 Declaration of intent and purpose.
Pursuant to the Municipal Gross Receipts Tax Act (Sections 14-61-1 to 14-61-8 NMSA 1953) which authorizes municipalities to enact a municipal gross receipts tax, it is hereby declared that the purpose and intent of the governing body of the Village of Cimarron is to enact an ordinance imposing a gross receipts tax of one-half percent in compliance with the Municipal Gross Receipts Tax Act. It is further declared the purpose and intent of this chapter to conform to the definitions and applicable gross receipts tax provisions of the New Mexico Gross Receipts and Compensating Tax Act and any interpretation of this chapter should be in conformity with the applicable sections of the Gross Receipts and Compensating Tax Act. [Ord. 107A § 2, 1978; Ord. 99 § 2, 1975].
3.15.030 General provisions.
This chapter hereby adopts by reference all definitions, exemptions and deductions contained in the Gross Receipts and Compensating Tax Act as it now exists or as it may be amended. [Ord. 257 § 2, 2012; Ord. 251 § 2, 2009; Ord. 139 § 2, 1984; Ord. 138 § 2, 1984; Ord. 107A § 3, 1978; Ord. 99 § 3, 1975].
3.15.040 Imposition of tax.
There is imposed on any person engaging in business in this municipality for the privilege of engaging in business in this municipality an excise tax equal to one-fourth of one percent of the gross receipts reported or required to be reported by the person pursuant to the New Mexico Gross Receipts and Compensating Tax Act as it now exists or as it may be amended. The tax imposed under this chapter is pursuant to the Municipal Local Option Gross Receipts Taxes Act as it now exists or as it may be amended and shall be known as the municipal gross receipts tax. [Ord. 257 § 1, 2012; Ord. 251 § 1, 2009; Ord. 139 § 1, 1984; Ord. 138 § 1, 1984; Ord. 118 § 1, 1981; Ord. 107A § 4, 1978; Ord. 99 § 4, 1975].
3.15.050 Deposit of proceeds.
All revenues distributed to the municipality by the bureau pursuant to the provisions of the Municipal Gross Receipts Tax Act shall be deposited into the fund of the municipality, unless otherwise specified in VCMC 3.15.140. [Ord. 107A § 5, 1978; Ord. 99 § 5, 1975].
3.15.060 Separately stating the municipal gross receipts tax.
When the municipal gross receipts tax is stated separately on the books of the seller or lessor, and if the total amount of tax that is stated separately on transactions reportable within one reporting period is in excess of the amount of municipal gross receipts tax otherwise payable on the transactions on which the tax was stated separately, the excess amount of tax stated on the transactions within that reporting period shall be included in gross receipts. [Ord. 107A § 6, 1978; Ord. 99 § 6, 1975].
3.15.070 Specific exemptions.
No municipal gross receipts tax shall be imposed on the gross receipts arising from:
A. Transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the municipality to another point outside the municipality;
B. A business located outside the boundaries of a municipality on land owned by that municipality for which a state gross receipts tax distribution is made pursuant to Section 7-1-6.4(C) NMSA 1978; or
C. Direct broadcast satellite services. [Ord. 257 § 3, 2012; Ord. 251 § 3, 2009; Ord. 139 § 3, 1984; Ord. 138 § 3, 1984; Ord. 118 § 2, 1981; Ord. 107A § 8, 1978; Ord. 99 § 8, 1975].
3.15.080 Date payment due.
The taxes imposed by this chapter are to be paid on or before the twenty-fifth day of the month following the month in which the taxable event occurs or as otherwise authorized by the bureau. [Ord. 107A § 7, 1978; Ord. 99 § 7, 1975].
3.15.090 Nontaxable transaction certificates, farmers’ and ranchers’ statements, and other evidence required to entitle persons to deductions.
A. All nontaxable transaction certificates executed by buyers or lessees should be in the possession of the seller or lessor for nontaxable transactions at the time the nontaxable transactions occur. If the seller or lessor is not in possession of these nontaxable transaction certificates within 60 days from the date notice requiring the possession of these nontaxable transaction certificates is given to the seller or lessor by the commissioner of revenue or his/her delegate, deductions claimed by the seller or lessor which required delivery of these nontaxable transaction certificates shall be disallowed. The nontaxable transaction certificates shall contain the information and be in a form prescribed by the bureau. Only buyers or lessees who have a registration number or have applied for a registration number and have not been refused one under Section 72-13-29(C) NMSA 1953 shall execute nontaxable transaction certificates. When the seller or lessor accepts a nontaxable transaction certificate within the required time and in good faith that the buyer or lessee will employ the property or service transferred in a nontaxable manner, the properly executed nontaxable transaction certificate shall be conclusive evidence, and the only material evidence, that the proceeds from the transaction are deductible from the seller’s or lessor’s gross receipts.
B. Properly executed documents required to support the deductions provided in VCMC 3.15.110(L), (M) and (CC) should be in the possession of the seller at the time the nontaxable transactions occur. If the seller is not in possession of these documents within 60 days from the date notice requiring the possession of these documents is given to the seller by the commissioner of revenue or his/her delegate, deductions claimed by the seller or lessor which require delivery of these documents shall be disallowed. These documents shall contain the information, and be in a form, prescribed by the bureau. When the seller accepts these documents within the required time and in good faith that the buyer will employ the property or service transferred in a nontaxable manner, the properly executed documents shall be conclusive evidence, and the only material evidence, that the proceeds from the transaction are deductible from the seller’s gross receipts.
C. Notification, as that term is used in this section, is sufficient if the notice is mailed or served as provided in Section 72-13-26(A) NMSA 1953. Notice by the commissioner under this section shall not be given prior to the commencement of an audit of the seller from whom the documents are required. [Amended during 2014 codification; Ord. 107A § 9, 1978; Ord. 99 § 9, 1975].
3.15.100 Suspension of the right to use a nontaxable transaction certificate.
If the commissioner suspends the right of any person to use nontaxable transaction certificates pursuant to Section 72-16A-13.1 NMSA 1953, such suspension applies to the use of such certificates under the municipal gross receipts tax ordinance. [Ord. 107A § 10, 1978; Ord. 99 § 10, 1975].
3.15.110 Deductions.
In computing the municipal gross receipts tax due, only the receipts specified in subsections (A) through (EE) of this section may be deducted. Receipts, whether specified once or several times in subsections (A) through (EE) of this section, may be deducted only once from gross receipts.
A. Sales to Manufacturers. Receipts from selling tangible personal property may be deducted from gross receipts if the sale is made to a person engaged in the business of manufacturing who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must incorporate the tangible personal property as an ingredient or component part of the product which he/she is in the business of manufacturing.
B. Sale of Tangible Personal Property for Resale. Receipts from selling tangible personal property may be deducted from gross receipts if the sale is made to a person who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must resell the tangible personal property either by itself or in combination with other tangible personal property in the ordinary course of business.
C. Sale of a Service for Resale. Receipts from selling a service for resale may be deducted from gross receipts if the sale is made to a person who delivers a nontaxable transaction certificate. The buyer delivering the transaction certificate must separately state the value of the service purchased in his/her charge for the service on its subsequent sale, and the subsequent sale must be in the ordinary course of business and subject to the municipal gross receipts tax.
D. Sale of Tangible Personal Property for Leasing. Receipts from selling tangible personal property, other than furniture or appliances the receipts from the rental or lease of which are deductible under subsection (H)(3) of this section and other than mobile homes as defined in Section 64-1-8 NMSA 1953, may be deducted from gross receipts if the sale is made to a person who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must be engaged in a business which derives a substantial portion of its receipts from leasing or selling tangible personal property of the type leased. The buyer may not utilize the tangible personal property in any manner other than holding it for lease or sale, or leasing or selling it either by itself or in combination with other tangible personal property in the ordinary course of business.
E. Lease for Subsequent Lease. Receipts from leasing tangible personal property, other than furniture or appliances the receipts from the rental or lease of which are deductible under subsection (H)(3) of this section, and other than mobile homes as defined in Section 64-1-8 NMSA 1953, may be deducted from gross receipts if the lease is made to a lessee who delivers a nontaxable transaction certificate to the lessor. The lessee delivering the nontaxable transaction certificate may not use the tangible personal property in any manner other than for subsequent lease in the ordinary course of business.
F. Sale of Tangible Personal Property to Persons Engaged in the Construction Business.
1. Receipts from selling tangible personal property 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.
2. The buyer delivering the nontaxable transaction certificate must incorporate the tangible personal property as:
a. An ingredient or component part of a construction project which is subject to the municipal gross receipts tax upon its completion or upon the completion of the overall construction project of which it is a part; or
b. An ingredient or component part of a construction project which is subject to the municipal gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed.
G. Sale of Construction Services to Persons Engaged in the Construction Business.
1. Receipts from selling a construction service 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 person performing the construction service.
2. The buyer delivering the nontaxable transaction certificate must have the construction services performed upon:
a. A construction project which is subject to the municipal gross receipts tax upon its completion or upon the completion of the overall construction project of which it is a part; or
b. A construction project which is subject to the municipal gross receipts tax upon the sale in the ordinary course of business of the real property upon which it was constructed.
H. Sale or Lease of Real Property and Lease of Mobile Homes.
1. Receipts from the sale or lease of real property, and from the lease of a mobile home as defined in Section 64-1-8 NMSA 1953 and as provided in subsection (H)(2) of this section, other than receipts from the sale or lease of oil, natural gas or mineral interests exempted by VCMC 3.15.080(B)(14), may be deducted from gross receipts. However, that portion of the receipts from the sale of real property which is attributable to improvements constructed on the real property by the seller in the ordinary course of his/her construction business may not be deducted from gross receipts.
2. Receipts received by hotels, motels, rooming houses, campgrounds, guest ranches, trailer parks, or similar facilities, except receipts received by trailer parks from the rental of a space or a mobile home for a period of at least one month, from lodgers, guests, roomers or occupants are not receipts from leasing real property for the purposes of this section.
3. Receipts attributable to the inclusion of furniture or appliances furnished as part of a leased or rented dwelling house, mobile homes defined in Section 64-1-8 NMSA 1953 or apartment by the landlord or lessor may be deducted from gross receipts.
I. Sales to Governmental Agencies. Receipts from selling tangible personal property, other than nonfissionable metalliferous mineral ore, to the United States or any agency or instrumentality thereof or the state of New Mexico or any political subdivision thereof may be deducted from gross receipts. Receipts from selling tangible personal property, other than nonfissionable metalliferous mineral ore, to the governing body of an Indian tribe or Indian pueblo for use on Indian reservations or pueblo grants may be deducted from gross receipts. That portion of the receipts from performing a service as defined in VCMC 3.15.030 which reflects the value of tangible personal property utilized or produced in performance of such service is not deductible.
J. Transactions in Interstate Commerce. Receipts from transactions in interstate commerce may be deducted from gross receipts to the extent that the imposition of the municipal gross receipts tax would be unlawful under the United States Constitution.
K. Intrastate Transportation and Services in Interstate Commerce.
1. 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, are being transported in interstate or foreign commerce under a single contract.
2. 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 a carrier and when such services are performed under a single contract in relation to transportation services, may be deducted from gross receipts.
L. Sale of Certain Services to an Out-of-State Buyer.
1. Receipts from performing a service, other than a legal, accounting or architectural service, may be deducted from gross receipts if the sale of the service is made to a buyer who delivers to the seller either a nontaxable transaction certificate or other evidence acceptable to the commissioner that the transaction does not contravene the conditions set out in subsection (C) of this section.
2. The buyer delivering the nontaxable transaction certificate or other evidence acceptable to the commissioner must not contravene the conditions set out in subsection (C) of this section.
3. Receipts from performance of a service shall not be subject to the deduction provided in this section if the buyer of the service, any of his/her employees or any person in privity with him/her:
a. Makes initial use of the product of the service in New Mexico;
b. Takes delivery of the product of the service in New Mexico; or
c. Concurrent with the performance of the service, has a regular place of work in New Mexico or spends more than brief and occasional periods of time in New Mexico; and
i. Has any communication in New Mexico related in any way to the subject matter, performance or administration of the service, with the person performing the service; or
ii. Himself/herself performs work in New Mexico related to the subject matter of the service.
M. Feed – Fertilizers. Receipts from selling feed for livestock, fish raised for human consumption, poultry or for animals raised for their hides or pelts, seeds, roots, bulbs, plants, soil conditioners, fertilizers, insecticides, fungicides or weedicides or water for irrigation purposes may be deducted from gross receipts if the sale is made to a person who states in writing that he/she is regularly engaged in the business of farming, ranching or the raising of animals for their hides or pelts. Receipts of auctioneers from selling livestock or other agricultural products at auction may also be deducted from gross receipts.
N. Warehousing, Threshing, Harvesting, Growing, Cultivating and Processing Agricultural Products.
1. Receipts from warehousing grain or other agricultural products may be deducted from gross receipts.
2. Receipts from threshing, cleaning, growing, cultivating or harvesting agricultural products, including the ginning of cotton or processing for growers, producers or nonprofit marketing associations of other agricultural products raised for food and fiber, including livestock, may be deducted from gross receipts.
O. Sales to Certain Organizations. Receipts from selling tangible personal property, other than metalliferous mineral ore, to organizations that have been granted exemption from the federal income tax by the United States Commissioner of Internal Revenue as organizations described in Section 501(c)(3) of the United States Internal Revenue Code of 1954, as amended or renumbered, may be deducted from gross receipts if the sale is made to an organization that delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must employ the tangible personal property in the conduct of functions described in Section 501(c)(3) and must not employ the tangible personal property in the conduct of an unrelated trade or business as defined in Section 513 of the United States Internal Revenue Code of 1954, as amended or renumbered. Receipts from selling tangible personal property that will become an ingredient or component part of a construction project are not receipts from selling tangible personal property for purposes of this section.
P. Sales to Banks and Financial Corporations. Receipts from selling tangible personal property, other than metalliferous mineral ore, to banks and financial corporations who employ the tangible personal property in their regular banking and financial corporation functions may be deducted from gross receipts.
Q. Agricultural Implements – Aircraft – Vehicles That Are Not Required to Be Registered. Fifty percent of the receipts from selling agricultural implements, farm tractors, aircraft or vehicles that are not required to be registered under the Motor Vehicle Code, Sections 64-1-1 to 64-23-24 NMSA 1953, may be deducted from gross receipts. Any deduction allowed under subsection (Z) of this section must be taken before the deduction allowed by this section is computed.
R. Publication Sales. Receipts from publishing newspapers or magazines, except from selling advertising space, may be deducted from gross receipts.
Receipts from selling magazines at retail may not be deducted from gross receipts.
S. Newspaper Sales. Receipts from selling newspapers, except from selling advertising space, may be deducted from gross receipts.
T. Chemicals and Reagents. Receipts from selling chemicals or reagents to any mining, milling or oil company for use in processing ores or oil in a mill, smelter or refinery or in acidizing oil wells and receipts from selling chemicals or reagents in lots in excess of 18 tons may be deducted from gross receipts. Receipts from selling explosives, blasting powder or dynamite may not be deducted from gross receipts.
U. Commissions. Receipts derived from commissions on sales of tangible personal property which are not subject to the municipal gross receipts tax may be deducted from gross receipts.
V. Refunds – Uncollectible Debts. Refunds and allowances made to buyers or amounts written off the books as an uncollectible debt by a person reporting municipal gross receipts tax on an accrual basis may be deducted from gross receipts. If debts reported uncollectible are subsequently collected, such receipts shall be included in gross receipts in the month of collection.
W. Warranty Obligations. Receipts of a dealer from furnishing goods or services to the purchaser of tangible personal property to fulfill a warranty obligation of the manufacturer of the property may be deducted from gross receipts.
X. Administrative and Accounting Services. Receipts of a corporation for administrative and accounting services performed by it for a wholly owned subsidiary corporation upon a nonprofit or cost basis, and receipts from a wholly owned subsidiary for the joint use or sharing of office machines and facilities upon a nonprofit or cost basis, may be deducted from gross receipts.
Y. Rental or Lease of Vehicles Used in Interstate Commerce. Receipts from the rental or leasing of vehicles used in the transportation of passengers or property for hire in interstate commerce under the regulations or authorization of any agency of the United States may be deducted.
Z. Trade-In Allowance. That portion of the receipts of a seller that is represented by a trade-in of tangible personal property of the same type being sold may be deducted from gross receipts.
AA. Special Fuel. Receipts from the sale of special fuel, as defined in Section 64-26-67 NMSA 1953, may be deducted from gross receipts if the purchaser is a bonded special fuel user under Section 64-26-73 NMSA 1953 who delivers a nontaxable transaction certificate to the seller.
BB. Sale of Prosthetic Devices. Receipts from selling prosthetic devices may be deducted from gross receipts if the sale is made to a person who is licensed to practice medicine, osteopathy, dentistry, podiatry, optometry, chiropractic or professional nursing and who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must deliver the prosthetic device incidental to the performance of a service and must include the value of the prosthetic device in his/her charge for the service.
CC. Sale of Property Used in the Manufacture of Jewelry. Receipts from selling tangible personal property may be deducted from gross receipts if the sale is made to a person who states in writing that he/she will use the property so purchased in manufacturing jewelry. The buyer must incorporate the tangible personal property as an ingredient or component part of the jewelry that he/she is in the business of manufacturing. The deduction allowed a seller under this section shall not exceed the sum of $1,000 during any 12-month period attributable to purchases by a single purchaser.
DD. Sale of Certain Services Performed Directly on Product Manufactured. Receipts from selling the service of combining or processing components or materials may be deducted from gross receipts if the sale is made to a person engaged in the business of manufacturing who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must have the service performed directly upon tangible personal property which he/she is in the business of manufacturing or upon ingredients or component parts thereof.
EE. Travel Agents’ Commissions Paid by Certain Entities. Receipts of travel agents derived from commissions paid by maritime transportation companies and interstate airlines, railroads and passenger buses for booking, referral, reservation or ticket services may be deducted from gross receipts. [Amended during 2014 codification; Ord. 107A § 11, 1978; Ord. 99 § 11, 1975].
3.15.120 Bureau as agent for collection – Municipality liable on refunds.
This municipality hereby appoints the New Mexico Bureau of Revenue as its agent to administer and enforce the collection of the municipal gross receipts tax. The Tax Administration Act (Sections 72-13-13 through 72-13-94 NMSA 1953) applies to the administration and enforcement of the municipal gross receipts tax ordinance. Any refund or other reimbursement which is due a taxpayer under the municipal gross receipts tax ordinance is a debt owing to such taxpayer from the municipality. The bureau may remit such refund or reimbursement to the taxpayer and deduct an equivalent amount from current collections attributable to the municipality. Should current collections not be sufficient to satisfy all refunds and reimbursements that are due and owing, the bureau is authorized and directed to make such refunds and reimbursements from the amounts of state gross receipts tax otherwise distributable to the municipality under the provisions of Section 72-13-24 NMSA 1953. If the bureau is unable to otherwise satisfy all refunds and reimbursements that are due and owing, the bureau shall so advise the municipality, and the municipality shall treat such refunds and reimbursements as extraordinary, nonrecurring debts for which the municipality shall be liable as if it had been a party to the claim for refund or reimbursement, and which shall be satisfied by additional assessments of the citizens of the municipality or by another legal means. Should the bureau require it, the municipality will enter into a contract with the bureau, whose terms are the same as those set out in this section. [Ord. 107A § 13, 1978; Ord. 99 § 13, 1975].
3.15.130 Dedication.
Revenue from the municipal gross receipts tax will be used for the purpose(s) listed below:
A. General fund operating expenses. [Ord. 257 § 4, 2012; Ord. 251 § 4, 2009; Ord. 139 § 4, 1984; Ord. 138 § 4, 1984; Ord. 118 § 3, 1981; Ord. 107A § 14, 1978].