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Keywords

plaintiffstatuteleasecorporationdue process
plaintiffleasecorporationdue process

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Besser Co. v. Bureau of Revenue, 74 N.M. 377, 394 P.2d 141, 1964 -NMSC- 169

Facts

The plaintiff, a Michigan corporation, leased machinery to four users in New Mexico and paid taxes under the New Mexico Emergency School Tax Act. The corporation argued that it was not engaged in business in New Mexico, as it did not maintain an office or employees in the state, and that the tax imposed was unconstitutional. The court found that the corporation's activities constituted engaging in business within New Mexico, thus making it subject to the tax.

The plaintiff, a Michigan corporation, leased machinery to four users in New Mexico and paid taxes under the New Mexico Emergency School Tax Act.

Issue

Whether the foreign corporation's leasing of machinery to users in New Mexico subjected it to the state's privilege tax under the New Mexico Emergency School Tax Act.

Whether the foreign corporation's leasing of machinery to users in New Mexico subjected it to the state's privilege tax under the New Mexico Emergency School Tax Act.

Rule

The tax is imposed on the gross receipts of businesses engaging in the rental or leasing of tangible personal property, and the definitions of 'business' and 'engaging' under the New Mexico Emergency School Tax Act apply.

The tax is imposed on the gross receipts of businesses engaging in the rental or leasing of tangible personal property, and the definitions of 'business' and 'engaging' under the New Mexico Emergency School Tax Act apply.

Analysis

The court analyzed the stipulations and determined that the corporation's leasing activities were not isolated or occasional but were part of its regular business operations. The court concluded that the tax was properly assessed under the relevant statutes, as the corporation was engaged in business in New Mexico by leasing machinery to local users.

The court analyzed the stipulations and determined that the corporation's leasing activities were not isolated or occasional but were part of its regular business operations.

Conclusion

The court affirmed the lower court's judgment, concluding that the tax was validly imposed and did not violate the commerce clause or due process.

The court affirmed the lower court's judgment, concluding that the tax was validly imposed and did not violate the commerce clause or due process.

Who won?

The State of New Mexico prevailed in the case, as the court found that the imposition of the tax was lawful and did not infringe upon the corporation's rights.

The State of New Mexico prevailed in the case, as the court found that the imposition of the tax was lawful and did not infringe upon the corporation's rights.

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