N.M. Code R. § 3.2.11.8 – Value - Freight Charges

A. Transportation costs that are paid by the seller to the carrier are an element of the sales price of the property.
B. Transportation costs that are paid to the carrier by the buyer are not an element of the sales price of the property.
C. If the buyer transports the property in equipment owned or leased by the buyer, the cost of the transportation does not increase the value of the property.
D. If the seller transports the property in equipment owned or leased by the seller, the cost of the transportation is already included in the price of the property and it is considered an element of the sales price of the property.
E. If the seller, acting as an agent for the buyer, pays the transportation charges, the cost of the transportation is not an element of the sales price.
F. Note: Section 3.2.11.8 NMAC also applies to the treatment of freight charges for purposes of computing gross receipts tax.
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