Non-Taxable Transaction Certificates (NTTC)
Legal liability for New Mexico gross receipts tax is placed on sellers and lessors. As a seller or lessor, you may charge the gross receipts tax amount to your customer. A Nontaxable Transaction Certificate (NTTC) obtained from the Taxation and Revenue Department allows you as a seller or lessor to deduct the receipts from qualified transactions from your gross receipts.
You need only one NTTC from a customer to cover all transactions of the same type with that customer. When you report gross receipts on a Gross Receipts Tax (GRT) return, you must include deductible gross receipts in the total reported. However, you also enter deductible gross receipts in the Total Deductions column and subtract them from gross receipts before tax is calculated.
n certain sales or leases, your customer may buy goods or services, or lease tangible property, without being charged Gross Receipts tax. If your customer obtains an NTTC from Taxation and Revenue and executes it to you as seller or lessor, you may exempt your customer from paying Gross Receipts Tax.
NTTCs are conclusive evidence that proceeds from a transaction are deductible from a taxpayer’s gross receipts if the taxpayer accepts in good faith a properly executed NTTC from the purchaser.
Under Section 7-9-43 NMSA 1978, taxpayers can provide alternative evidence instead of an NTTC to establish entitlement to many of the deductions allowed in the Gross Receipts and Compensating Tax Act. The exception to this are the deductions provided in Section 7-9-46 NMSA 1978, for which a Type 11 or Type 12 NTTC is required.
Type 6 NTTC-Requires a contractor’s license verification. The Construction Industries Division (CID)of the Regulation and Licensing Department no longer requires licensing for the following classifications as of April 1, 2016: GS-3 tile, GS-10 fencing, GS -11 fixtures cabinets and millwork, GS -12 flooring, GS -17 ornamental iron and welding, GS -18 painting, GS -22 sandblasting, GS -26 vaults and depositories and GS -28 gunite. CID is no longer regulating these trades and a contractor’s license is not required. Applicants who fall into one of these categories can request a Type 6 on our Taxpayer Access Point portal https://tap.state.nm.us or by contacting the department at NTTC@state.nm.us to submit new or renewal applications for Type 6 Non-taxable Transaction Certificates (NTTC).
For more information, please see bulletin B200.32, Alternative Evidence for Deductions in the Forms & Publications section of this website.
If you are a reseller
If you are a reseller, using NTTCs may exempt you from paying Gross Receipts Taxes on qualified purchases. After registering with Taxation and Revenue and receiving a Business Tax Identification Number, you may obtain an NTTC online through the Taxpayer Access Point (TAP).
Please note that resale certificates issued by other states are not valid in New Mexico. In place of a Type 2 NTTC, customers who are not required to register with Taxation and Revenue may be able to execute a Multijurisdictional Sales and Use Tax certificate issued by the Multistate Tax Commission or a Border States Uniform Sale for Resale certificate, as described in FYI-204: Nontaxable Transaction Certificates (NTTC’s).
You can also deliver NTTCs in paper form to your vendors. Because the New Mexico Legislature removed the expiration date for paper NTTCs in the 1992 Series, all executed Series 1992 NTTCs remain valid. You may continue to deliver your current supplies or obtain new paper NTTCs by applying to us.
There is a limit of five paper NTTCs per application. Complete form ACD-31050, Application for Nontaxable Certificates, available on the Forms & Publications page of this website. A listing of the types of NTTCs is also available in FYI 204.
New Mexico Taxation and Revenue Department
P.O. Box 5557
Santa Fe, New Mexico 87502-5557
Or your Local District Tax Office