N.M. Code R. § 3.2.20.12 – Intangibles - Receipts from Sale of Licenses or Permits

A. Receipts of any agency, institution, instrumentality or political subdivision of the state of New Mexico from a transaction which is primarily the granting of a license or a permit other than admissions to recreational, athletic or entertainment services or events are not governmental gross receipts, even if tangible evidence of the license or permit is given to the licensee or permittee.
B. Example 1: Under the Motor Vehicle Code, the state of New Mexico requires resident drivers of motor vehicles to be licensed by the taxation and revenue department. Upon passing of certain tests and payment of a fee for the license, the driver is licensed and a card is issued to a qualifying driver containing the driver's picture and certain information about the driver. The card is merely the physical evidence that the driver to whom the card was issued is licensed with the department in accordance with law. Receipts from issuing such driver's licenses are not receipts from the sale of tangible personal property and are not governmental gross receipts.
C. Example 2: Several municipalities (under Section 3-38-1 NMSA 1978) and counties (under Section 4-37-1 NMSA 1978) require persons engaged in certain types of business to obtain a license prior to engaging or continuing to engage in that business. A certificate is issued documenting the granting of the license; sometimes the certificate is required to be displayed on the premises of the licensed business. Receipts from issuing such licenses are not receipts from the sale of tangible personal property and are not governmental gross receipts.
D. Example 3: Marriage licenses are required of persons desiring to marry in the state of New Mexico. Upon payment of the fee and other requirements, a document is issued. Receipts from issuing such licenses are not receipts from the sale of tangible personal property and are not governmental gross receipts.
[6/28/91, 11/15/96; 3.2.20.12 NMAC - Rn, 3 NMAC 2.100.12 & A, 4/30/01]