A. Sales, other than sales described in Section 7-4-17 N.M. Stat. Ann., are in this state: (1)     in the case of sale, rental, lease or license of real property, if and to the extent the real property is located in this state;

Terms Used In New Mexico Statutes 7-4-18

  • Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Personal property: All property that is not real property.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.

(2)     in the case of rental, lease or license of tangible personal property, if and to the extent the tangible personal property is located in this state;

(3)     in the case of sale of a service, if and to the extent the service is delivered to a location in this state; and

(4)     in the case of sale, rental, lease or license of intangible property, if and to the extent the intangible property is used in this state.

B. If the state or states of assignment under Subsection A of this section cannot be determined, the state or states of assignment shall be reasonably approximated.

C. If the taxpayer is not taxable in a state to which a sale is assigned pursuant to Subsection A of this section or if the state of assignment cannot be determined or reasonably approximated pursuant to Subsection B of this section, that sale shall be excluded from the numerator and denominator of the sales factor.

D. The department may promulgate rules as necessary or appropriate to carry out the purposes of this section.

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