Problematic Expense Guide - A to Z

• New Mexico Gross Receipts Tax on the Purchase of Goods – The payment or reimbursement of New Mexico Gross Receipts tax for the purchase of tangible personal property (goods) is a prohibited use of University funds, unless the goods are being used and consumed/installed within a construction project. [Please note that UNM is not exempt from New Mexico Gross Receipts tax on the purchase of services, or on sales tax from any other State, so those are allowable expenses.] 
  
  
  • The Reason this is Unallowable – The University is exempt from New Mexico Gross Receipts tax on the purchase of tangible personal property (goods) in accordance with State Statute 7-9-54. Therefore, the payment of New Mexico Gross Receipts tax on the purchase of goods would constitute an unnecessary waste of University funds under State law.  In New Mexico State Auditor statues, waste is defined as “…the act of using or expending resources carelessly, extravagantly, or to no purpose."(NMAC 2.2.2.7(W).  In addition, the payment or reimbursement of New Mexico Gross Receipts tax would specifically violate University Administrative Policy 4320:  Purchasing Goods Off Campus, Section 1.1:  Gross Receipts Tax, and Section 5:  Reimbursement for Purchases.
    
    
  • Possible Allowable Alternatives - Try this Instead:
    • Before making a purchase of goods, contact the UNM Accounts Payable department and request that they issue and provide a Non-Tax Transactional Certificate (NTTC) for the vendor. If you present the NTTC to the vendor, you will not be charged New Mexico Gross Receipts tax on the purchase of goods. 
    • If a purchase has already taken place, contact the UNM Accounts Payable department and request that they issue and provide a Non-Tax Transactional Certificate (NTTC) for the vendor. Present the NTTC to the vendor and request that they refund the tax that was charged.