A. Except as provided otherwise in Subsection B of this section, receipts from leasing tangible personal property or licenses may be deducted from gross receipts if the lease is made to a lessee who delivers a nontaxable transaction certificate to the lessor or provides alternative evidence pursuant to Section 7-9-43 N.M. Stat. Ann.. The lessee may not use the tangible personal property or license in any manner other than for subsequent lease in the ordinary course of business.

Terms Used In New Mexico Statutes 7-9-50

  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • 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.

B. The deduction provided by this section does not apply to receipts from leasing: (1)     furniture or appliances, the receipts from the rental or lease of which are deductible under Subsection C of Section 7-9-53 N.M. Stat. Ann.; (2)     coin-operated machines; or

(3)     manufactured homes.