Section 15. Receipts That Are Not Deductible

Receipts from the following transactions are not deductible under Section 7-9-95 NMSA 1978: A. Receipts from performing services on tangible personal property that are deductible under Section 7-9-95 NMSA 1978, such as the alteration or repair of clothing. B. Receipts from leasing or renting tangible personal property. In order for the deduction under Section 7-9-95 NMSA 1978 to apply the qualified items must be sold at retail. [3.2.242.15 NMAC - N, 8/15/05; A, 7/31/12] 3.2.242.16 ITEMS CONSIDERED TO BE COMPUTERS FOR PURPOSES OF THE DEDUCTION UNDER SECTION 7-9-95 NMSA 1978: In addition to those computers that are specifically authorized in the statute, the following items are considered to be computers and qualify for the deduction as long as the cost of the item does not exceed the one thousand dollars ($1,000) threshold set in statute: A. e-readers that have computing functions such as word processing, spreadsheet capabilities, etc.; and B. tablet computers.