§ 7-12-4. Exemption

A. Exempted from the cigarette tax are sales of cigarettes: (1) to the United States or any agency or instrumentality thereof or the state of New Mexico or any political subdivision thereof; (2) to a tribe, or to a tribal member licensed by the governing body of a tribe for use or sale on that tribe's land, if the tribe has in place a qualifying tribal cigarette tax; and (3) sales that the state is prohibited from taxing by a provision of the United States constitution or the constitution of the state of New Mexico. B. As used in this section, the term “ agency or instrumentality ” does not include persons who are agents or instrumentalities of the United States for a particular purpose or only when acting in a particular capacity or corporate agencies or instrumentalities.