The ACD-31052 Nontaxable Transaction Certificate must be completed by the buyer and given to the seller before the transaction takes place. Follow these steps to fill it out correctly.
- Select the Certificate Type - Choose the NTTC type that matches your transaction. Types 1 through 9 each cover a different exemption category defined under NMSA 1978, such as purchasing for resale, manufacturing inputs, or property for sub-leasing.
- Enter the Certificate Number - Provide the NTTC number assigned to your business. For a blanket certificate covering ongoing transactions with the same seller, use your assigned blanket certificate number.
- Fill in the execution date - Enter the date the certificate becomes effective for the covered transaction or relationship.
- Provide buyer information - Enter your full legal business name and your New Mexico Combined Reporting System (CRS) Identification Number.
- Provide seller information - Enter the seller's full legal business name and their New Mexico CRS Identification Number.
- Describe the property or service - Briefly describe the type of tangible personal property or service covered by the certificate so the scope is clearly defined.
- Sign and date - An authorized representative of the buying business must sign the form, print their name and title, and enter the date of execution.
Who Needs the ACD-31052 Form
This certificate is required for New Mexico businesses that purchase goods or services intended for resale, leasing, or use as inputs in a manufacturing process. Common users include wholesale distributors, retailers purchasing inventory, manufacturers acquiring raw materials, and lessors buying property for sub-leasing. The form is not applicable to personal purchases or retail consumer transactions.
Related Tax Exemption Forms
If you work in multiple states or need a similar exemption certificate elsewhere, these forms may be relevant to your business:
- Texas Sales Tax Exemption Certificate
- California Sales Tax Certificate
- Maryland Sales and Use Tax Resale Certificate
- Sales Tax Certificate (General)
Frequently Asked Questions
What is the ACD-31052 form used for?
The ACD-31052 is New Mexico's Nontaxable Transaction Certificate (NTTC). Buyers give it to sellers to document that a purchase qualifies as a gross receipts tax exemption. The seller keeps the certificate as proof that the transaction was legitimately nontaxable under New Mexico law.
How long is a New Mexico NTTC valid?
A single-use NTTC covers one specific transaction. A blanket NTTC covers all qualifying transactions between the same buyer and seller for as long as the buyer's exempt status remains unchanged. Both parties must retain their copies for a minimum of three years for audit purposes.
What happens if the ACD-31052 is misused?
Misusing an NTTC, or converting purchased goods to a use not covered by the certificate, can result in tax liability, interest charges, and suspension of NTTC privileges. Both the buyer and the seller may be held responsible if the certificate is accepted without a reasonable good-faith basis.
Is the ACD-31052 specific to New Mexico?
Yes, this form is issued and required only by the New Mexico Taxation and Revenue Department. Other states use their own tax exemption certificate forms. If your business operates in multiple states, you will need the appropriate exemption certificate for each jurisdiction where you claim a tax exemption.