N.M. Admin. Code § 3.2.116.11

Current through Register Vol. 35, No. 17, September 10, 2024

Section 3.2.116.11 - SALE OR LEASING THE SAME OR SIMILAR PROPERTY

A. Receipts from an isolated or occasional sale are exempt pursuant to Section 7-9-28 NMSA 1978 only when the seller of the property is not engaged in the business of selling or leasing the same or similar property.

B. Example: T is regularly engaged in the business of leasing construction and paving equipment to third parties. T contemplates terminating its leasing business and plans on having all equipment sold at public auction by a third party. Since T is regularly engaged in the business of leasing property which is the same as or similar to the property to be sold, the receipts from the sale are not exempt pursuant to Section 7-9-28 NMSA 1978 as isolated or occasional.

3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.116.11 NMAC - Rn, 3 NMAC 2.28.11 & A, 5/15/01