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  3. If a taxpayer buys items from New Mexico vendors for resale only, will this activity give the taxpayer nexus in New Mexico?

If a taxpayer buys items from New Mexico vendors for resale only, will this activity give the taxpayer nexus in New Mexico?

As defined by New Mexico law, “buying means the transfer of property for consideration or any performance of service for consideration.” Because buying items for resale will result in a benefit to the taxpayer, buying activities constitute “engaging in business” in New Mexico. How the buying activities are conducted determines whether the taxpayer has nexus. If the taxpayer comes into the state to make purchases, it has created nexus with New Mexico.