§ 3.16.090. Deductions—Nontaxable transaction certificates—Evidence required.

A.

All nontaxable transaction certificates executed by buyers or lessees should be in the possession of the seller or lessor for nontaxable transactions at the time the nontaxable transactions occur. If the seller or lessor is not in possession of these nontaxable transaction certificates within sixty days from the date notice requiring the possession of these nontaxable transaction certificates is given the seller or lessor by the Commissioner of Revenue or his delegate, deductions claimed by the seller or lessor which required delivery of these nontaxable transaction certificates shall be disallowed. The nontaxable transaction certificates shall contain the information and be in a form prescribed by the bureau. Only buyers or lessees who have a registration number or have applied for a registration number and have not been refused one under subsection C of Section 72-13-29 New Mexico Statutes Annotated, 1953 shall execute nontaxable transaction certificates. When the seller or lessor accepts a nontaxable transaction certificate within the required time and in good faith that the buyer or lessee will employ the property or service transferred in a nontaxable manner, the properly executed nontaxable transaction certificate shall be conclusive evidence, and the only material evidence, that the proceeds from the transaction are deductible from the seller's or lessor's gross receipts.

B.

Properly executed documents required to support the deductions provided in subsection 12, 13 and 29 of Section 3.16.110 should be in the possession of the seller at the time the nontaxable transactions occur. If the seller is not in possession of these documents within sixty days from the date notice requiring the possession of these documents is given to the seller by the Commissioner of Revenue or his delegate, deductions claimed by the seller or lessor which require delivery of these documents shall be disallowed. These documents shall contain the information and be in a form prescribed by the bureau. When the seller accepts these documents within the required time and in good faith that the buyer will employ the property or service transferred in a nontaxable manner, the properly executed documents shall be conclusive evidence, and the only material evidence, that the proceeds from the transaction are deductible from the seller's gross receipts.

C.

Notification, as that term is used in this section, is sufficient if the notice is mailed or served as provided in subsection A of Section 72-13-26 New Mexico Statutes Annotated, 1953. Notice by the commissioner under this section shall not be given prior to the commencement of an audit of the seller from whom the documents are required.

(Ord. 1101-78 § 9, 1978).