N.M. Code R. § 3.2.20.22 – Taxes

A. The receipts of any agency, institution, instrumentality or political subdivision of the state of New Mexico from the imposition of any tax, assessment or levy, including the governmental gross receipts tax, whether imposed by that entity or any other governmental entity, are not receipts from a taxable activity and are not governmental gross receipts.
B. Example 1: Municipality A receives a share of the gross receipts tax imposed by the state on taxable activities in Municipality A. A also imposes its own municipal gross receipts tax on those same activities. A's tax is collected by a state agency at the same time and in the same manner as the state gross receipts tax. Neither the share of the state tax nor the proceeds from A's own tax are governmental gross receipts.
C. Example 2: Upon a certain property in Municipality B, ad valorem taxes are levied by the state, county, municipality and certain special districts. All taxes are collected by the county treasurer and distributed to the entities imposing tax. None of the property taxes collected are governmental gross receipts for the county treasurer or any imposing entity.
[6/28/91, 10/2/92, 11/15/96; 3.2.20.22 NMAC - Rn, 3 NMAC 2.100.22, 4/30/01]