Section 9. Hauling For Manufacturer

Hauling components or materials for a person engaged in the manufacturing business is not a manufacturing service within the meaning of Section 7-9-75 NMSA 1978. The hauler is neither combining nor processing these items; therefore, the manufacturer may not issue to the hauler a nontaxable transaction certificate and the hauler may not deduct the receipts pursuant to Section 7-9-75 NMSA 1978. The hauler's receipts are fully subject to the gross receipts tax. [3/16/79, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.235.9 NMAC - Rn, 3 NMAC 2.75.9 & A, 6/14/01] 3.2.235.10 RECEIPTS FROM MANUFACTURER FOR “GET READY”: Amounts paid to, or credited against the account of, an automotive dealer by a manufacturer to compensate the dealer for inspection and other “get ready” operations performed on new vehicles manufactured by that manufacturer may be deducted from gross receipts if the dealer has in possession a Type 13 (manufacturing services) nontaxable transaction certificate (nttc) issued by the manufacturer of the vehicles since the dealer is performing services directly on the property which the manufacturer is in the business of manufacturing. A reduction in the dealer's invoice price for a new vehicle to compensate the dealer for “get ready” operations on that vehicle involves a receipt by the dealer, but a deduction of that amount may be claimed by the dealer who has a Type 13 nttc issued by the manufacturer. 3.2.235 NMAC 2 [6/20/89, 11/26/90, 11/15/96; 3.2.235.10 NMAC - Rn, 3 NMAC 2.75.10, 6/14/01] 3.2.235.11 RECEIPTS FROM NON-MANUFACTURERS FOR “GET READY”: Amounts paid to a New Mexico automotive dealer by another dealer for inspection and other “get ready” operations performed on new vehicles being sold by the other dealer may not be deducted under a Type 13 nontaxable transaction certificate issued by the other dealer since the New Mexico dealer is not performing the services for the manufacturer.