New Mexico Resident Business Certification
NM Changes to Resident Contractor/Business Preference Rules
Effective January 1, 2012 any business or contractor that wants to use the NM resident business preference when contracting with the state of New Mexico under RFP’s or competitive bid will need to obtain a new resident business certification from the State of New Mexico. The following news flash explains the new rule change.
The New Mexico statutes regarding resident business preferences were amended by the First NM Special Legislative Session of 2011. The amended statutes set forth the criteria required for a business to qualify as a Resident Business or Resident Contractor. It is important to note, a resident preference is applicable to contracts, which typically call for, but are not limited to, the furnishing of tangible personal property, i.e. goods, supplies, materials, equipment, printed materials and certain services.
Consistent with Sections 13-1-21 and 13-4-2 NMSA 1978, “resident preference” is applicable to COMPETITIVE BID procurements only. Additionally, any person, firm, corporation, or other legal entity must have all required licenses at the time the application for preference is submitted to the Taxation and Revenue Department for consideration.
Please note: All certifications are subject to revocation in accordance with applicable rules. A certification merely establishes that the Taxation and Revenue Department has determined based upon the information provided in the application, as of the date of issuance, that the holder was entitled to treatment as a resident business and/or contractor by state agencies and local public bodies.
An application for preference is required by the amended statute. The application includes an affidavit from a certified public accountant setting forth certain eligibility criteria for businesses or contractors, as required by Section 13-1-22 NMSA 1978.
The completed application along with payment of Thirty Five ($35) dollars must be submitted to the Taxation and Revenue Department prior to issuance of a resident business preference or a resident contractor preference certificate. In addition to the application, the Taxation and Revenue Department may require submission of additional information to ensure eligibility.
A certificate is valid for three (3) years from the date of its issuance; provided that if there is a change of ownership of more than fifty percent, a resident business or resident contractor shall reapply.
All previous certified preferences held on December 31, 2011 will expire and the business/contractor that would like the resident preference in bidding on contracts with the State of NM will have to reapply.
Please call us for more information. We would be glad to help you with the certification.