{"id":4194,"date":"2016-06-24T12:15:23","date_gmt":"2016-06-24T18:15:23","guid":{"rendered":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/?p=4194"},"modified":"2026-04-11T13:29:08","modified_gmt":"2026-04-11T19:29:08","slug":"tucson-electric-power-company","status":"publish","type":"post","link":"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2016\/06\/24\/tucson-electric-power-company\/","title":{"rendered":"Tucson Electric Power Company"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221;][et_pb_row _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221;][et_pb_column _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221; type=&#8221;4_4&#8243;][et_pb_text _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; sticky_enabled=&#8221;0&#8243;]<\/p>\n<div class=\"blogDateTitleContainer\">\n<div class=\"blogDateTitle\">06\/24\/2016<\/div>\n<\/div>\n<div class=\"blogItem\">\n<p><a href=\"https:\/\/realfile.tax.newmexico.gov\/16-29_tucson_electric_power_company.pdf\">16-29<\/a><\/p>\n<p><span>On December 19, 2014, the Taxpayer applied for a refund of compensating tax for the period July 1, 2011 through December 31, 2011.\u00a0 On June 17, 2015, the Department denied the claim for refund, initially because a managed audit was performed for that time frame, but the reason was later clarified to be that no deduction applied.\u00a0 The Taxpayer protested the denial of refund on July 29, 2015.\u00a0 The Taxpayer paid compensating tax on the purchase of natural gas during the period in question.\u00a0 The natural gas was purchased and delivered via pipeline to a facility owned by the Taxpayer and others that used natural gas to produce a chemical reaction to convert natural gas into electricity.\u00a0 The Taxpayer purchased the natural gas from several out of state companies that do not have nexus in New Mexico.\u00a0 The Taxpayer argues that it is not subject to compensating tax on the use of the natural gas because if the seller was subject to the gross receipts tax, the transactions would have been deductible under Section 7-9-65 or 7-9-46\u00a0NMSA\u00a01978.\u00a0 The Taxpayer argued that Section 7-9-65\u00a0NMSA\u00a01978 applies because it purchased chemicals or reagents in lots in excess of eighteen tons, for which the Section provides a deduction.\u00a0 The hearing officer found that the Taxpayer failed to present sufficient evidence that the natural gas or chemicals or reagents it purchased was purchased in lots.\u00a0 The Taxpayer then argued that Section 7-9-46, which provides a deduction for the receipts from the sale of tangible personal property to a manufacturer would apply.\u00a0 The hearing officer found that the Taxpayer is in the business of processing natural gas to produce electricity and is not in the business of manufacturing.\u00a0 The Taxpayer\u2019s protest was denied.<\/span><\/p>\n<\/div>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.6.6&#8243; _module_preset=&#8221;default&#8221;]<\/p>\n<p><a href=\"\/all-nm-taxes\/tax-decisions-orders\/\">Back to Tax Decisions &amp; Orders<\/a><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>06\/24\/2016 16-29 On December 19, 2014, the Taxpayer applied for a refund of compensating tax for the period July 1, 2011 through December 31, 2011.\u00a0 On June 17, 2015, the Department denied the claim for refund, initially because a managed audit was performed for that time frame, but the reason was later clarified to be [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"960","footnotes":""},"categories":[43],"tags":[],"class_list":["post-4194","post","type-post","status-publish","format-standard","hentry","category-tax-decisions-orders"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tucson Electric Power Company : All NM Taxes<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tax.newmexico.gov\/all-nm-taxes\/2016\/06\/24\/tucson-electric-power-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" 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