NMSA 1978, § 7-9-51 — 7-9-51

Deduction; gross receipts tax; sale of construction material
to persons engaged in the construction business.

# A.

Receipts from selling construction material may be deducted from gross receipts
if the sale is made to a person engaged in the construction business who delivers a
nontaxable transaction certificate to the seller or provides alternative evidence pursuant
to Section 7-9-43 NMSA 1978.

# B.

The buyer must incorporate the construction material as:
(1) an ingredient or component part of a construction project that is subject to
the gross receipts tax upon its completion or upon the completion of the overall
construction project of which it is a part;
(2) an ingredient or component part of a construction project that is subject to
the gross receipts tax upon the sale in the ordinary course of business of the real
property upon which it was constructed; or
(3) an ingredient or component part of a construction project that is located on
the tribal territory of an Indian nation, tribe or pueblo.