Exemptions from either the gross receipts tax or the compensating tax are not exemptions from both taxes unless explicitly stated otherwise by law.

History: 1978 Comp., § 7-9-12, enacted by Laws 1969, ch. 144, § 5; 1970, ch. 60, § 1; 1972, ch. 61, § 1; 1973, ch. 67, § 1; 1984, ch. 2, § 2; 2017 (1st S.S.), ch. 3, § 14.

The 2017 (1st S.S.) amendment, effective July 1, 2017, removed language to clarify that certain exemptions from either the gross receipts or compensating tax are not exemptions from both taxes; and deleted "Exempted from the gross receipts or compensating tax are those receipts or uses exempted in Sections 7-9-13 through 7-9-42 NMSA 1978.".

Inequalities which result from singling out of one particular class for taxation or exemption, infringe no constitutional limitation. Dikewood Corp. v. Bureau of Revenue, 1964-NMSC-057, 74 N.M. 75, 390 P.2d 661.

Statute of exemption from taxation must receive a strict construction, and no claim of exemption should be sustained unless within the express letter or the necessary scope of the exempting clause. Robert E. McKee, Gen. Contractor, Inc. v. Bureau of Revenue, 1957-NMSC-082, 63 N.M. 185, 315 P.2d 832 (decided under former law).

Legal services performed for Indian tribe. — The gross receipts tax may properly be imposed on a non-Indian law firm for legal services performed off the reservation on behalf of an Indian tribe; federal law cannot preempt by implication the tax under such circumstances, since, when reviewing state taxation of activities of non-Indians off the reservation, an actual conflict with an express federal provision is required for preemption. Rodey, Dickason, Sloan, Akin & Robb, P.A. v. Revenue Div., Dep't of Taxation & Revenue, 1988-NMSC-063, 107 N.M. 399, 759 P.2d 186.

Uncontemplated regulatory exception invalid. — If a regulation adopted by the bureau of revenue (now taxation and revenue department) creates an exception from exempt transactions which is not contemplated by the legislative act, even though such administrative interpretations are entitled to great weight in ascertaining the meaning of the statute, the courts may not give legal sanction to the agency's incorrect construction of unambiguous statutory language. Strebeck Props., Inc. v. N.M. Bureau of Revenue, 1979-NMCA-035, 93 N.M. 262, 599 P.2d 1059.

Burden rests squarely on taxpayer to prove entitlement to exemption. Al Zuni Traders v. Bureau of Revenue, 1977-NMCA-025, 90 N.M. 258, 561 P.2d 1351.

Notice of type of proof necessary to avoid taxation unnecessary. — Under the Gross Receipts and Compensating Tax Act, the contention that prior to the first audit of its books the commissioner had not sent any notice to taxpayer, or other taxpayers in the same industry, of the type of proof necessary to avoid taxation was pure nonsense. Al Zuni Traders v. Bureau of Revenue, 1977-NMCA-025, 90 N.M. 258, 561 P.2d 1351.

Legislature intended to make gross receipts and compensating taxes correlate: an exemption from the gross receipts tax must also be treated as an exemption from the compensating tax. Western Elec. Co. v. N.M. Bureau of Revenue, 1976-NMCA-047, 90 N.M. 164, 561 P.2d 26.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 68 Am. Jur. 2d Sales and Use Taxes § 200.

Sales or use tax upon containers of packaging materials purchased by manufacturer or processor for use with goods he distributes, 4 A.L.R.4th 581.

Eyeglasses or other optical accessories as subject to sales or use tax, 14 A.L.R.4th 1370.

What constitutes newspapers, magazines, periodicals, or the like, under sales or use tax law exemption, 25 A.L.R.4th 750.

Architectural drawings or illustrations as exempt from sales or use tax, 27 A.L.R.5th 794.

Sales and use tax exemption for medical supplies, 30 A.L.R.5th 494.

Exemption of charitable or educational organization from sales or use tax, 69 A.L.R.5th 477.