Sales Tax Articles
Sales Tax State Activity Update - April 2006
New Mexico Healthcare Shortages Offer Construction Exemptions
The New Mexico Legislature recently enacted law that provides a deduction from gross receipts for selling engineering, architectural or construction services and construction equipment and materials used in the new facility construction of a sole community provider hospital that is located in a federally designated health professional shortage area .
It is required that the sale of the engineering, architectural or construction services and construction equipment and materials are made to a foundation or a nonprofit organization that:
- A. has entered into a written agreement with a county to pay at least ninety-five percent of the costs of new facility construction of that sole community provider hospital; and
- B. delivers to the seller of the engineering, architectural or construction services and construction equipment and materials either an appropriate nontaxable transaction certificate or other evi-dence acceptable to the secretary of a written agreement made in accordance with point A above.
The law becomes effective July 1, 2006.
View the full text on the New Mexico Legislature website.
(New Mexico Legislature House Bill No. 8)
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