Form Rpd-41378 - Application For Type 11 Or 12 Nontaxable Transaction Certificates Page 10
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14RPD-41378
State of New Mexico - Taxation and Revenue Department
Rev. 04/30/2013
Application for Type 11 or 12 Nontaxable Transaction Certificates
Deduction for Tangibles Consumed in the Manufacturing Process
Instructions
Page 5 of 9
Example B
A
Municipality / County
B
Special
C
Location
D
Gross Receipts
E
Taxable Gross
Tax
H
Gross Receipts
Total
F
G
Name
Code*
Code
(Excluding Tax)
Receipts
Rate
Tax
Deductions
1
02-100
10,000
1,300
8,700
Albuquerque/Bern.
7%
609.00
2
Santa Fe/Santa Fe
01-123
15,000
300
14,700
8.1875%
1,203.56
D0-003
3
2,000
7%
0.00
2,000
0
27,000
3,600
TOTAL COLUMNS D, E and H.
1,812.56
$
$
1
TOTAL GROSS RECEIPTS TAX
*See instructions for column B.
2
COMPENSATING TAX
3
WITHHOLDING TAX
1,812.56
4
TOTAL TAX DUE
PENALTY
5
6
INTEREST
1,812.56
7
TOTAL AMOUNT DUE
In Example B, the seller has two locations and in the month of June 2013, sold $10,000 of merchandise, all of which
qualify for the deduction allowed by the Type 11 NTTC. $6,000 of those sales were made from the Albuquerque
location and $4,000 of those sales were made from the Santa Fe location. A 20% deduction is available for these
transactions in calendar year 2013. On line 3, $2,000 is reported as the combined deductible portion of the sales
(for Albquerque 20% of $6,000 = $1,200 and for Santa Fe 20% of $4,000 = $800). The remaining $8,000 sales are
included in the gross receipts reported for Albuquerque and Santa Fe and are combined with all other sales and
deductions applicable to those locations.
Type 12 -
For sales of utilities on or after January 1, 2013:
A. The seller deducts 100% of the gross receipts or governmental gross receipts for the sales of utilities that are
consumed in the manufacturing of a product, and
B. the manufacturer’s deduction is phased-in through calendar year 2017, to 100% of the receipts of the utility for
the portion consumed in the manufacturing process.
20% of receipts received after January 1, 2013 and before January 1, 2014;
40% of receipts received in calendar year 2014;
60% of receipts received in calendar year 2015;
80% of receipts received in calendar year 2016;
100% of receipts received on or after January 1, 2017.
The manufacturing company must have a fully executed Form RPD- 41377, an agreement with the utility company
whereby the buyer agrees to pay the gross receipts tax due for the sale of utilities sold to the manufacturer, that
were NOT consumed in the manufacturing process, but were combined with the utilities sold that qualify for the
deduction.
The manufacturer is responsible for any tax due including any penalties and interest that may accrue on the tax
due for the utilities purchased.
Form RPD-41377, the agreement, must be included in the application package. The manufacturer must report
the receipts sold by the utility company on its CRS-1 Form in the manner described in the instructions for Form
RPD-41378.
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