New Mexico Taxes Demilitarization and Disposal Services Performed In-State

Apr 5th, 2021

New Mexico recently determined that demilitarization and disposal services performed at sites in New Mexico are taxable services. New Mexico taxes sales of services in the state unless an exemption applies. The taxpayer performed range residue removal services to demilitarize and remove munitions debris from United States military training facilities.

The taxpayer had to perform its services in New Mexico because the site locations were in-state. The taxpayer did not have an office or keep equipment in New Mexico, but the services had to be performed in the state. The purchaser of the services made initial use of the service in New Mexico, so the taxpayer could not claim a deduction for services sold to an out-of-state government agency.

https://www.ttrus.com/sites/default/files/newspdf/New_Mexico_Taxes_Demilitarization_and_Disposal_Services_Performed_In-State_1617660082.pdf