Taxpayer's Electricity Transmission Not Taxable in New Mexico

Tuesday, November 15th, 2016

 
 
North Carolina Department of Revenue.
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New Mexico
Energy

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.

http://my.ttrus.com/content/law/NM_450_16_3_1478803710.pdf


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