NMSA 1978, § 7-9-52.1 — 7-9-52.1

Deduction; gross receipts tax; lease of construction
equipment to persons engaged in the construction business.

# A.

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

# B.

The lessee shall only use the construction equipment at the construction location
of:
(1) 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) 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) a construction project that is located on the tribal territory of an Indian
nation, tribe or pueblo.

# C.

As used in this section, "construction equipment" means equipment used on a
construction project, including trash containers, portable toilets, scaffolding and
temporary fencing.