Section 13. Water Taps

Receipts of a utility from providing a “tap” to a water main and installing a pipe from the water main to a meter which it provides to a person engaged in the construction business are deductible from gross receipts if the person engaged in the construction business delivers a nontaxable transaction certificate pursuant to Section 7-9-52 NMSA 1978. [3/9/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.210.13 NMAC - Rn, 3 NMAC 2.52.13 & A, 5/31/01] 3.2.210.14 SALVAGING OF A “PRODUCTION UNIT”: Receipts of a person engaged in the business of 3.2.210 NMAC 3 servicing “production units” as defined in the Oil and Gas Emergency School Tax Act, Section 7-31-2 NMSA 1978, from performing services in connection with salvaging of materials from a “production unit” are not receipts from the sale of construction services or from construction-related services within the meaning of Section 7-9-52 NMSA 1978 and may not be deducted from gross receipts.