Non-Taxable Transaction Certificates (NTTC)
Information on Non-Taxable Transaction Certificates
If you are a seller or lessor
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 (TRD) 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 form CRS-1, 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.
In 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 TRD and executes it to you as seller or lessor, you may exempt your customer from paying gross receipts tax.
An NTTC is the only documentation TRD can legally accept as documentation for certain deductions taken by sellers or lessors.
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 TRD and receiving a CRS identification number, you may obtain an NTTC through TRD’s NTTC webservice. Note: TRD has the right to refuse to issue NTTCs to taxpayers who are delinquent in paying taxes.
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 TRD 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 Transaction Certificates (NTTCs). A listing of the types of NTTCs is also available
New Mexico Taxation and Revenue Department
P.O. Box 5557
Santa Fe, New Mexico 87502-5557
Or your Local District Tax Office