N.M. Admin. Code § 3.2.12.9 - GENERAL EXAMPLE

A. The following example illustrates the application of Section 7-9-9 NMSA 1978.

B. Example: A purchases a piece of equipment from X, an El Paso dealer, for $1,000. X is registered with the department as an agent for collection of compensating tax. X bills A as follows:

Equipment	$ 1,000
N.M. Comp. Tax	50
$ 1,050

Since X is registered as an agent to collect and pay over compensating tax pursuant to Section 7-9-10 NMSA 1978 and collected compensating tax from A, A is relieved of any compensating tax liability, even if X fails to remit the tax to the department.

Notes

N.M. Admin. Code § 3.2.12.9

2/15/85, 4/2/86, 11/26/90, 11/15/96; 3.2.12.9 NMAC - Rn & A, 3 NMAC 2.9.9, 4/30/01