Taxpayer's Electricity Transmission Not Taxable in New Mexico

Tuesday, November 15th, 2016

North Carolina Department of Revenue.
New Mexico

The New Mexico Taxation and Revenue Department ruled that a taxpayer's in-state electricity transportation was not taxable.

The taxpayer transported electricity from its New Mexico location to a company in New Mexico. The company transported the electricity out-of-state. The company had a contract that required it to then send the electricity outside New Mexico.

Transportation beginning and ending in New Mexico is generally a taxable service. It is not taxable if the service is part of a single contract to transport something outside New Mexico. This includes sales of services to someone required by that contract to transport something outside New Mexico if the seller is not part of that contract.

Here, the taxpayer's transportation of electricity was not taxable because it sold the service to a company that had a contract to send the electricity outside New Mexico.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

Vehicles Used to Transport Materials between Facilities...

Wednesday, August 15th, 2018 -The Arkansas Department of Finance and Administration recently ruled that a vehicle used to transport in-proce...

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...