NMSA 1978, § 7-9-62 — 7-9-62

Deduction; gross receipts tax; agricultural implements;
aircraft manufacturers; vehicles that are not required to be
registered; aircraft parts and maintenance services; reporting
requirements.

# A.

Except for receipts deductible under Subsection B of this section, fifty percent of
the receipts from selling agricultural implements, farm tractors, aircraft or vehicles that
are not required to be registered under the Motor Vehicle Code [Articles 1 through 8 of
Chapter 66 NMSA 1978, except 66-7-102.1 NMSA 1978] may be deducted from gross
receipts; provided that, with respect to agricultural implements, the sale is made to a
person who states in writing that the person is regularly engaged in the business of
farming or ranching. Any deduction allowed under Section 7-9-71 NMSA 1978 must be
taken before the deduction allowed by this subsection is computed.

# B.

Receipts of an aircraft manufacturer or affiliate from selling aircraft or from selling
aircraft flight support, pilot training or maintenance training services may be deducted
from gross receipts. Any deduction allowed under Section 7-9-71 NMSA 1978 must be
taken before the deduction allowed by this subsection is computed.

# C.

Receipts from selling aircraft parts or maintenance services for aircraft or aircraft
parts may be deducted from gross receipts. Any deduction allowed under Section 7-9-
71 NMSA 1978 must be taken before the deduction allowed by this subsection is
computed.

# D.

A taxpayer allowed a deduction pursuant to this section shall report the amount
of the deduction separately in a manner required by the department.

# E.

The deductions provided by this section shall be included in the tax expenditure
budget pursuant to Section 7-1-84 NMSA 1978 with an analysis of the effectiveness and
cost of the deductions.

# F.

As used in this section:
(1) "affiliate" means a business entity that directly or indirectly through one or
more intermediaries controls, is controlled by or is under common control with the
aircraft manufacturer;
(2) "agricultural implement" means a tool, utensil or instrument that is
depreciable for federal income tax purposes and that is:
(a) designed to irrigate agricultural crops above ground or below ground at
the place where the crop is grown; or
(b) designed primarily for use with a source of motive power, such as a
tractor, in planting, growing, cultivating, harvesting or processing agricultural crops at
the place where the crop is grown; in raising poultry or livestock; or in obtaining or
processing food or fiber, such as eggs, milk, wool or mohair, from living poultry or
livestock at the place where the poultry or livestock are kept for this purpose;
(3) "aircraft manufacturer" means a business entity that in the ordinary course
of business designs and builds private or commercial aircraft certified by the federal
aviation administration;
(4) "business entity" means a corporation, limited liability company,
partnership, limited partnership, limited liability partnership or real estate investment
trust, but does not mean an individual or a joint venture;
(5) "control" means equity ownership in a business entity that:
(a) represents at least fifty percent of the total voting power of that business
entity; and
(b) has a value equal to at least fifty percent of the total equity of that
business entity; and
(6) "flight support" means providing navigation data, charts, weather
information, online maintenance records and other aircraft or flight-related information
and the software needed to access the information.