A. Exempted from the gross receipts tax are receipts from the sale or processing of products the processing of which is subject to the privilege tax imposed by the Natural Gas Processors Tax Act [Chapter 7, Article 33 NMSA 1978] except that receipts from the sale of products other than for subsequent resale in the ordinary course of business, for consumption outside the state, or for use as an ingredient or component part of a manufactured product are subject to the Gross Receipts and Compensating Tax Act as well as to the Natural Gas Processors Tax Act.

B. No gross receipts tax or compensating tax pursuant to the Gross Receipts and Compensating Tax Act shall apply to receipts from storing or using crude oil, natural gas or liquid hydrocarbons, individually or any combination, when stored or used in New Mexico by a "processor", as defined by the Natural Gas Processors Tax Act, or by a person engaged in the business of refining oil, natural gas or liquid hydrocarbons who stores or uses the crude oil, natural gas or liquid hydrocarbons in the regular course of his refining business.

History: 1953 Comp., § 72-16A-12.22, enacted by Laws 1969, ch. 144, § 27; 1970, ch. 13, § 1; 1975, ch. 133, § 2; 1984, ch. 2, § 4; 1989, ch. 115, § 2.

Cross references. — For meaning of "processor", see 7-33-2 NMSA 1978.

The 1989 amendment, effective July 1, 1989, rewrote Subsection A; and in Subsection B substituted "receipts from storing" for "any person for the privilege of storing", and deleted "thereof" following "combination".

Company not entitled to exemption when selling natural gas to refinery. — A gas company is neither a user of natural gas nor in the business of refining natural gas when it sells natural gas to a refinery, and, thus, it is not entitled to the exemption provided in Subsection B. Gas Co. v. O'Cheskey, 1980-NMCA-085, 94 N.M. 630, 614 P.2d 547