FAR 52.229-10 - State of New Mexico Gross Receipts and Compensating Tax

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Prescribed in 29.401-4(b)
Effective Date:	1 April 2003
Clause or Provision:	Clause
Provision or Clause Number:	52.229-10 - State of New Mexico Gross Receipts and Compensating Tax
Principle Type And/Or Purpose of Contract:
Required:
Applicable:	Architect-Engineering; Communication Services; Cost Reimbursement, R&D; Transportation
Optional:
Subject:	Taxes"Taxes" is not in the list of possible values (Commercial Item, Independent Price Determination, Hotline Posters, Whistleblower Protection, Contingent Fees, Specifications/Standards, Leased Vehicles and Equipment, Payments to Influence Certain Federal Transactions, Contracts, Representations and Certifications, Executive Compensation, Category:Truth In Negotiations Act (TINA), Competition, Delivery or Performance Schedules, Employment/Labor/Wages, Certified Cost or Pricing Data and/or Data other than Certified, Defective Pricing, Data other than Certified, Indirect Rates and/or Incurred Cost Submissions, Bid & Proposal, Small Business, Hazardous Materials, Drug Free Workplace, "Green" Efforts (Printing, Waste Reduction, Pollution, Energy Efficiency), Recovered Material, Safety, Software, Utility Contracts, Contract Changes, Freight and/or Transportation, Termination/Cancellation, Mandatory Disclosure, Definitions, Category:Cost Accounting Standards (CAS), Audit and Records, Illegal or Improper Activity, Contractor Code of Business Ethics and Conduct, Definite-Quantity, Indefinite Quantity, or Requirements Contract, Gratuities, Conflicts of Interest, Anti-Kickback, Identity Verification, Approval of Contract, Security, Taxpayer Identification, Women-Owned Business, DUNS/SAM/CCR, Supplies, Equipment, Helium, Mandatory Sources of Supply or Services, Inverted Domestic Corporations, First Article Approval, Responsibility Matters, Market Research, Subcontract(s)/Subcontractor(s), Damages, Priority Rating, Quantity/Quantities, Material, Invoices and Payments, Disadvantaged, Small, Disabled, Veteran or Women Owned or HUBZone Business, Facilities Capital Cost of Money, Post Retirement Benefits and/or Pension, Ownership, Order of Precedence, Performance, Make or Buy, Contract Type, Letter Contract, Award(s), Economic Price Adjustment, Price Redetermination, Fee, Options, Envirnomental, Privacy, Buy American, Foreign, Patents, Licenses, Data Rights, and Royalties, Insurance, Bond, Taxes and/or Duties) for this property.
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (b) Contract clause. The contracting officer shall insert the clause at 52.229-10, State of New Mexico Gross Receipts and Compensating Tax, in solicitations and contracts issued by the agencies identified in paragraph (c) of this subsection when all three of the following conditions exist: (1) The contractor will be performing a cost-reimbursement contract. (2) The contract directs or authorizes the contractor to acquire tangible personal property as a direct cost under a contract and title to such property passes directly to and vests in the United States upon delivery of the property by the vendor. (3) The contract will be for services to be performed in whole or in part within the State of New Mexico.
Clause Overview:	Clause (a) Within thirty (30) days after award of this contract, the Contractor shall advise the State of New Mexico of this contract by registering with the State of New Mexico, Taxation and Revenue Department, Revenue Division, pursuant to the Tax Administration Act of the State of New Mexico and shall identify the contract number. (b) The Contractor shall pay the New Mexico gross receipts taxes, pursuant to the Gross Receipts and Compensating Tax Act of New Mexico, assessed against the contract fee and costs paid for performance of this contract, or of any part or portion thereof, within the State of New Mexico. The allowability of any gross receipts taxes or local option taxes lawfully paid to the State of New Mexico by the Contractor or its subcontractors will be determined in accordance with the Allowable Cost and Payment clause of this contract except as provided in paragraph (d) of this clause. (c) The Contractor shall submit applications for Nontaxable Transaction Certificates, Form CSR-3C, to the: State of New Mexico Taxation and Revenue Dept. Revenue Division PO Box 630 Santa Fe, New Mexico 87509 When the Type 15 Nontaxable Transaction Certificate is issued by the Revenue Division, the Contractor shall use these certificates strictly in accordance with this contract, and the agreement between the (*________________) and the New Mexico Taxation and Revenue Department. (d) The Contractor shall provide Type 15 Nontaxable Transaction Certificates to each vendor in New Mexico selling tangible personal property to the Contractor for use in the performance of this contract. Failure to provide a Type 15 Nontaxable Transaction Certificate to vendors will result in the vendor’s liability for the gross receipt taxes and those taxes, which are then passed on to the Contractor, shall not be reimbursable as an allowable cost by the Government. (e) The Contractor shall pay the New Mexico compensating user tax for any tangible personal property which is purchased pursuant to a Nontaxable Transaction Certificate if such property is not used for Federal purposes. (f) Out-of-state purchase of tangible personal property by the Contractor which would be otherwise subject to compensation tax shall be governed by the principles of this clause. Accordingly, compensating tax shall be due from the contractor only if such property is not used for Federal purposes. (g) The (*_______________) may receive information regarding the Contractor from the Revenue Division of the New Mexico Taxation and Revenue Department and, at the discretion of the (*_________________), may participate in any matters or proceedings pertaining to this clause or the above-mentioned Agreement. This shall not preclude the Contractor from having its own representative nor does it obligate the (*______________) to represent its Contractor. (h) The Contractor agrees to insert the substance of this clause, including this paragraph (h), in each subcontract which meets the criteria in 29.401-4(b)(1) through (3) of the Federal Acquisition Regulation, 48 CFR Part 29. (i) Paragraphs (a) through (h) of this clause shall be null and void should the Agreement referred to in paragraph (c) of this clause be terminated; provided, however, that such termination shall not nullify obligations already incurred prior to the date of termination. [*Insert appropriate agency name in blanks.]
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:
Editor:	Marshall

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Personal notes.