A. Fifty percent of the value of agricultural implements, farm tractors, aircraft not exempted under Section 7-9-30 NMSA 1978 or vehicles that are not required to be registered under the Motor Vehicle Code [Chapter 66, Articles 1 to 8 NMSA 1978] may be deducted from the value in computing the compensating tax due; provided that, with respect to use of agricultural implements, the person using the property is regularly engaged in the business of farming or ranching. Any deduction allowed under Subsection B of this section is to be taken before the deduction allowed by this subsection is computed. As used in this subsection, "agricultural implement" means a tool, utensil or instrument that is:

(1) designed primarily for use with a source of motive power, such as a tractor, in planting, growing, cultivating, harvesting or processing agricultural produce at the place where the produce is grown; in raising poultry or livestock; or in obtaining or processing food or fiber, such as eggs, milk, wool or mohair, from living poultry or livestock at the place where the poultry or livestock are kept for this purpose; and

(2) depreciable for federal income tax purposes.

B. That portion of the value of tangible personal property on which an allowance was granted to the buyer for a trade-in of tangible personal property of the same type that was bought may be deducted from the value in computing the compensating tax due.

History: 1953 Comp., § 72-16A-15, enacted by Laws 1966, ch. 47, § 15; 1969, ch. 144, § 64; 1975, ch. 159, § 2; 1988, ch. 148, § 2; 1998, ch. 89, § 6.

The 1998 amendment, effective July 1, 1998, in Subsection A, added the proviso at the end of the first sentence, added the last sentence and added Paragraphs A(1) and (2).

"Vehicle" construed. — To be a "vehicle" within the meaning of Subsection A, a machine must be capable of being utilized as a means of carrying people or other property over the highways. Kaiser Steel Corp. v. Revenue Div., 1981-NMCA-042, 96 N.M. 117, 628 P.2d 687, cert. denied, 96 N.M. 116, 628 P.2d 686.

Neither dragline nor continuous miner within scope of section. — Because neither a dragline nor a continuous miner can be classified as a vehicle under Section 66-1-4B NMSA 1978 (now Section 66-1-4.11 NMSA 1978), neither is in the category of "vehicles not required to be registered" within the meaning of this section. Kaiser Steel Corp. v. Revenue Div., 1981-NMCA-042, 96 N.M. 117, 628 P.2d 687, cert. denied, 96 N.M. 116, 628 P.2d 686; Pittsburgh & Midway Coal Mining Co. v. Revenue Div., 1983-NMCA-019, 99 N.M. 545, 660 P.2d 1027, appeal dismissed, 464 U.S. 923, 104 S. Ct. 323, 78 L. Ed. 2d 296 (1983).