Form Rpd-41378 - Application For Type 11 Or 12 Nontaxable Transaction Certificates Page 13
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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 8 of 9
facturing process and the allowable deduction for the receipts received in the calendar year as shown
below.
Column F: M shows the difference between Column D and Column E. This amount reflects the taxable receipts
that are reported on behalf of the utility company.
Column G: The tax rate for the location of the utility meter at the manufacturing facility is shown, except for the
purchase of water from a governmental entity. Because the seller is a governmental entity, the location
code 55-055 and the tax rate of 5% are used for governmental gross receipts.
Column H: M multiplies the amount in Column F and Column G to determine the amount of gross receipts re-
ported on behalf of the utility company.
Computing the Total Deductions, Column E.
Electricity
Amount billed by the utility for the purchase of the electricity
=
$1,000
Multiply by 65% (percentage of the electricity consumed in the manufacturing process)
x 65%
Total of receipts that are associated with the electricity consumed in the manufacturing process
=
$650
Multiply by the applicable deduction amount (20% in the 1st year)
x 20%
Total amount of receipts that are deductible
=
$130
Natural Gas
Amount billed by the utility for the purchase of the natural gas
=
$500
Multiply by 45% (percentage of the natural gas consumed in the manufacturing process)
x 45%
Total of receipts that are associated with the natural gas consumed in the manufacturing process
=
$225
Multiply by the applicable deduction amount (20% in the 1st year)
x 20%
Total amount of receipts that are deductible
=
$45
Water
Amount billed by the utility for the purchase of the water
=
$100
Multiply by 30% (percentage of the water consumed in the manufacturing process)
x 30%
Total of receipts that are associated with the water consumed in the manufacturing process
=
$30
Multiply by the applicable deduction amount (20% in the 1st year)
x 20%
Total amount of receipts that are deductible
=
$6
Other - Steam
Amount billed by the utility for the purchase of the steam
=
$100
Multiply by 30% (percentage of the steam consumed in the manufacturing process)
x 30%
Total of receipts that are associated with the steam consumed in the manufacturing process
=
$30
Multiply by the applicable deduction amount (20% in the 1st year)
x 20%
Total amount of receipts that are deductible
=
$6
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