The following example illustrates the application of Subsection D of Section 7-7-4 NMSA 1978.

1. A. Example 1: S is a decedent who was a resident of State M at the time of her death. The property in her estate consisted solely of bank accounts located in State M and 10,000 shares of stock of XYZ, Inc., a corporation organized under the laws of New Mexico.

2. B. Pursuant to Section 7-7-4(C)(2) NMSA 1978, the stock is property located in New Mexico, upon which Section 7-7-4(A) NMSA 1978 imposes tax. However, the estate tax law of State M taxes all personal property of its domiciliary decedents, and refrains from taxing the personal property of New Mexico's (and other states') decedents. Therefore, the transfer of S's estate is exempt from the New Mexico estate tax.

   [8/5/74, 9/15/88, 7/15/96; 3.8.4.11 NMAC - Rn & A, 3 NMAC 8.4.11, 12/14/00]

   HISTORY OF 3.8.4 NMAC:

   Pre-NMAC History: The material in this part was derived from that previously filed with the State Records Center:

   BOR 70-1, (Inheritance Tax Reg. 2-1), Accrual of Interest During Probate Court’s Extension of Time for Payment of Inheritance Tax, filed 3/5/70.

   BOR 71-6, Regulation for Inheritance Tax Act, filed 12/20/71.

   BOR 73-2, Regulations in Effect and Pertaining to the New Mexico Inheritance Tax Act, filed 4/4/73.

   BOR 74-3, Regulations in Effect and Pertaining to the New Mexico Estate Act, filed 8/5/74.

   TRD Rule 7-88, Regulations Pertaining to the New Mexico Estate Tax Act, Sections 7-7-1 to 7-7-20 NMSA 1978, filed 9/15/88.

   History of Repealed Material: [RESERVED]

   NMAC History:

   3 NMAC 8.4, Nonresident, filed 7/2/96.

   3.8.4 NMAC, Nonresident, filed 12/1/00.