us-nm/stat
NMSA 1978, § 7-5A-9 — Liability
A.
A certified service provider is liable for sales taxes and use taxes due from each
member state on each sales transaction that it processes for the seller, except as
otherwise provided by this section. A seller that contracts with the certified service
provider is not liable to this state for sales tax or use tax due on a transaction processed
by the certified service provider unless the seller misrepresents the type of item it sells
or commits fraud. In the absence of probable cause that the seller has committed fraud
or made a material misrepresentation, the seller is not subject to audit on transactions
processed by the certified service provider. A seller is subject to audit for a transaction
not processed by the certified service provider. Member states acting jointly may:
(1) audit data pertaining to the seller that is stored in the certified automated
system; and
(2) review procedures of the seller to determine if the certified automated
system functions properly and the extent to which the transactions of the seller are
processed by this certified service provider.
B.
A certified service provider is responsible for the proper functioning of a certified
automated system and is liable to this state for underpayments of tax attributable to
system errors. A seller that uses a certified automated system is liable to this state for
reporting and remitting tax.
C.
A seller that has a proprietary system for determining the amount of tax due on a
transaction and has agreed to establish a performance standard for the system is liable
for failure of the system to meet the standard.
Source: official text