Non-Taxable Transaction Certificates (NTTC)
Non-taxable Transaction Certificates (NTTC’s) are specific to New Mexico gross receipts tax deductions. This page will go over where you can find useful information on NTTC’s, use the Taxpayer Access Point (TAP) to apply and execute NTTC’s, and below you can locate publications on NTTC’s and the paper applications to apply for a NTTC.
Note: For many deductions that have a NTTC, alternative evidence can also be accepted. Please see the resources outlined below for more information.
Useful Information on NTTC’s:
The Taxation and Revenue Department (TRD) classifies Nontaxable Transaction Certificates (NTTCs) by type and each type is associated with specific deductions. For a comprehensive description of NTTC Types, please refer to FYI-204: Nontaxable Transaction Certificates (NTTCs) or Form ACD-31050, Application for Nontaxable Transaction Certificates (NTTC).
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 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.
If your customer obtains an NTTC from Taxation and Revenue and executes it to you as seller or lessor, you would not pass the gross receipts to your customer on qualifying transactions.
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.
Note: 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/TAP/_/ or by contacting the department at NTTC@tax.nm.gov to submit new or renewal applications for Type 6 Non-taxable Transaction Certificates (NTTC).
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 New Mexico Business Tax Identification Number (NMBTIN), 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, more information is located in the FYI-204: Nontaxable Transaction Certificates (NTTC’s).
Taxpayer Access Point (TAP) – Apply and Execute NTTC’s Online:
If you are a buyer or lessee with a valid New Mexico Business Tax Identification Number (NMBTIN), you can obtain, execute, print and view New Mexico NTTCs through Taxpayer Access Point.
You do not have to print a copy of an NTTC that you manage electronically because the electronic record of that execution is also on file with the Taxation and Revenue Department and is considered an official record.
Paper NTTCs
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 using the Form ACD-31050, Application for Nontaxable Transaction Certificates (NTTC).
There is a limit of five paper NTTCs per application. Complete form ACD-31050, Application for Nontaxable Certificates, available at the bottom of this page.
Contact Information
New Mexico Taxation and Revenue Department
P.O. Box 5557
Santa Fe, New Mexico 87502-5557
Or your Local District Tax Office
Or emailing NTTC@tax.nm.gov
Publications and Applications:
FYI 204- Nontaxable Transaction Certificates NTTCs