Section 9. General Example

A. The following example illustrates the application of Section 7-9-9 NMSA 1978. B. Example: A purchases a piece of equipment from X, an El Paso dealer, for $l,000. X is registered with the department as an agent for collection of compensating tax. X bills A as follows: Equipment $ 1,000 N.M. Comp. Tax 50 $ 1,050 Since X is registered as an agent to collect and pay over compensating tax pursuant to Section 7-9-10 NMSA 1978 and collected compensating tax from A, A is relieved of any compensating tax liability, even if X fails to remit the tax to the department.