us-nm/stat
NMSA 1978, § 7-20E-9.1 — County compensating tax
A.
Beginning July 1, 2021, for the privilege of using tangible personal property in a
county, there is imposed on the person using the property an excise tax at a rate equal
to the combined gross receipts tax rates imposed and in effect pursuant to the Local
Hospital Gross Receipts Tax Act [repealed], the County Local Option Gross Receipts
and Compensating Taxes Act [Chapter 7, Article 20E NMSA 1978] and the County
Correctional Facility Gross Receipts Tax Act [7-20F-3 to 7-20F-12 NMSA 1978] of the
value of tangible personal property that was:
(1) manufactured by the person using the property in the state; or
(2) acquired inside or outside this state as the result of a transaction with a
person located outside this state that would have been subject to the state gross
receipts tax had the tangible personal property been acquired from a person with nexus
with New Mexico.
B.
For the purpose of Subsection A of this section, the value of tangible personal
property shall be the adjusted basis of the property for federal income tax purposes
determined as of the time of acquisition or introduction into this state or of conversion to
use, whichever is later. If no adjusted basis for federal income tax purposes is
established for the property, a reasonable value of the property shall be used.
C.
For the privilege of using a license or franchise in a county, there is imposed on
the person using the license or franchise an excise tax equal to the tax rate provided in
Subsection A of this section against the value of the license or franchise as determined
pursuant to Section 7-9-7 NMSA 1978. The department by rule, ruling or instruction
shall fairly apportion, where appropriate, the value of a license or franchise to its value
in use in the county. For use of a license or franchise to be taxable under this
subsection, the value of the license or franchise shall be acquired inside or outside this
state as the result of a transaction with a person located outside this state that would
have been subject to the gross receipts tax had the license or franchise been acquired
from a person with nexus with this state.
D.
For the privilege of using services in a county, there is imposed on the person
using the services an excise tax at the rate provided in Subsection A of this section of
the value of the services at the time the product of the service was acquired. For use of
services to be taxable under this subsection, the services shall have been performed by
a person outside this state and the product of which was acquired inside or outside this
state as the result of a transaction with a person located outside this state that would
have been subject to the gross receipts tax had the service or product of the service
been acquired from a person with nexus with this state.
E.
The governing body of a county may dedicate the revenue from the tax imposed
pursuant to this section for any county purpose. If the governing body proposes to
dedicate revenue for a specific purpose, the dedicated revenue shall be used by the
county for that purpose unless a subsequent ordinance is adopted to change the
purpose to which the revenue is dedicated or to place the revenue in the general fund of
the county.
F.
Any law that affects the county compensating tax, or any law supplemental or
otherwise appertaining thereto, shall not be repealed or amended or otherwise directly
or indirectly modified in such a manner as to impair adversely any outstanding revenue
bonds that may be secured by a pledge of such county compensating tax unless such
outstanding revenue bonds have been discharged in full or provision has been fully
made therefor.
G.
The tax imposed by this section may be cited as the "county compensating tax".
Source: official text