us-nm/stat
NMSA 1978, § 7-9-77 — Deductions; compensating tax
A.
Fifty percent of the value of agricultural implements, farm tractors, aircraft not
exempted under Section 7-9-30 NMSA 1978 or vehicles that are not required to be
registered under the Motor Vehicle Code [Chapter 66, Articles 1 through 8 NMSA 1978]
may be deducted from the value in computing the compensating tax due; provided that,
with respect to use of agricultural implements, the person using the property is regularly
engaged in the business of farming or ranching. Any deduction allowed under
Subsection B of this section is to be taken before the deduction allowed by this
subsection is computed. As used in this subsection, "agricultural implement" means a
tool, utensil or instrument that is:
(1) designed primarily for use with a source of motive power, such as a
tractor, in planting, growing, cultivating, harvesting or processing agricultural produce at
the place where the produce 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; and
(2) depreciable for federal income tax purposes.
B.
That portion of the value of tangible personal property on which an allowance
was granted to the buyer for a trade-in of tangible personal property of the same type
that was bought may be deducted from the value in computing the compensating tax
due.
Source: official text