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If a vehicle rental business buys a vehicle to lease or sell, is its acquisition of that vehicle subject to New Mexico motor vehicle excise tax?

Such an acquisition of a vehicle is exempt from motor vehicle excise tax if:

  • The business does not use the vehicle in any way other than holding it for lease or sale, or for leasing or selling it in the ordinary course of business;
  • The lease of the vehicle is for a term of more than six months;
  • The receipts from the lease of the vehicle are subject to New Mexico gross receipts tax, and
  • The vehicle does not have a gross vehicle weight of over 26,000 pounds.
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