Form Rpd-41378 - Application For Type 11 Or 12 Nontaxable Transaction Certificates Page 9
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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 4 of 9
Example A
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
D0-002
3
1,700
7%
0.00
1,700
0
26,700
3,300
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
On their CRS-1 Form, the seller combines all deductible sales to a manufacturer, based on a Type 2 NTTC, on a
separate line and uses the location code D0-002 in Column C. All other sales and deductions must be reported
separately. In Example A, the sale of tangible personal property that is deductible because it is sold to a manufac-
turer to be incorporated into or as an ingredient component part of the manufactured product is reported on line
3. All other sales and deductions are reported on lines 1 and 2 based on applicable business locations.
In Example A, also note that the seller has multiple locations where it sells tangible personal property for which the
Type 2 NTTC deduction applies. The seller combines the deductible sales on one line using location code D0-002,
regardless of the location from which the deductible sale was made.
Type 11 -
For sales of tangible personal property made on or after January 1, 2013, the seller may deduct the ap-
plicable percentage of gross receipts or governmental gross receipts when the tangible personal property sold is
consumed in the manufacturing of a product*. A deduction is only available in the following percentages:
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.
* Generally, the sale of tangible personal property that is electricity, natural gas, water or any other utility con-
sumed in the manufacturing of a product, requires the execution of a Type 12 NTTC to substantiate a deduc-
tion taken under Section 7-9-46B. Under limited circumstances, however, when the utility purchased is 100%
consumed in the manufacturing of a product, the seller may accept a Type 11 NTTC.
On their CRS-1 Form, the seller combines ONLY the deductible portion of the sales that are deductible based on
a Type 11 NTTC on a separate line and uses the location code D0-003 in Column C. The portion of the sales that
are not deductible and all other sales and deductions may be combined and reported separately - according to the
location where the tangibles were sold. In Example B, the sale of tangible personal property is deductible because
it is sold to a manufacturer to be consumed in the process of manufacturing the product and is reported in line 3.
All other sales and deductions are reported in lines 1 and 2.
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