NMSA 1978, § 7-9-78 — 7-9-78

Deductions; compensating tax; use of tangible personal
property for leasing.

# A.

Except as provided otherwise in Subsection B of this section, the value of
tangible personal property may be deducted in computing the compensating tax due if
the person using the tangible personal property:
(1) is engaged in a business which derives a substantial portion of its receipts
from leasing or selling tangible personal property of the type leased;
(2) does not use the tangible personal property 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 in the ordinary course of business; and
(3) does not use the tangible personal property in a manner incidental to the
performance of a service.

# B.

The deduction provided by this section shall not apply to the value of:
(1) furniture or appliances furnished as part of a leased or rented dwelling
house or apartment by the landlord or lessor;
(2) coin-operated machines; or
(3) manufactured homes.