NMSA 1978, § 7-9-49 — 7-9-49

Deduction; gross receipts tax; sale of tangible personal
property and licenses for leasing.

# A.

Except as otherwise provided by Subsection B of this section, receipts from
selling tangible personal property and licenses may be deducted from gross receipts if
the sale is made to a person who delivers a nontaxable transaction certificate to the
seller or provides alternative evidence pursuant to Section 7-9-43 NMSA 1978. The
buyer shall be engaged in a business that derives a substantial portion of its receipts
from leasing or selling tangible personal property or licenses of the type sold. The
buyer may not utilize the tangible personal property or license 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 or licenses in the ordinary course of business.

# B.

The deduction provided by this section shall not apply to receipts from selling:
(1) furniture or appliances, the receipts from the rental or lease of which are
deductible under Subsection C of Section 7-9-53 NMSA 1978;
(2) coin-operated machines; or
(3) manufactured homes.