Governmental Gross Receipts Tax 

The state imposes a governmental gross receipts tax of 5.00% on the receipts of New Mexico state and local governments. The exceptions are the gross receipts of public school districts and entities licensed by the Department of Health that are principally engaged in providing health care. Governmental gross receipts include:

  • The sale of tangible personal property, other than water, from facilities open to the general public*; Refuse collection and/or disposal;
  • Sewage services;
  • The sale of water by a utility owned or operated by a county, municipality or other political subdivision of the state, and
  • The renting of parking, docking, or tie-down spaces, or the granting of permission to park vehicles, tie-down aircraft, or dock boats (Section 7-9-3.2 NMSA 1978). The state distributes the governmental gross receipts tax dollars to the Public Project Revolving Fund at the New Mexico Finance Authority the Energy, Minerals and Natural Resources Department, and the Department of Cultural Affairs.

*Please note: For governmental gross receipts a "facility open to the general public"; DOES NOT include point-of-sale registers or electronic devices at a bookstore owned or operated by a public post-secondary educational institution. The state does not impose the governmental gross receipts tax when the institution sells textbooks or other course materials to a student enrolled at the institution who displays a valid student identification card. 

Contact Information
To contact the Department

Links

 

FYI-240: Transactions with Government Agencies
For Government
Section 7-9-3.2 NMSA 1978

Frequently Asked Questions

Q. If a business sells a service or leases property to a federal, New Mexico or tribal government agency, are the gross receipts from that sale or lease subject to New Mexico governmental gross receipts tax?

Answer:
No. Governmental gross receipts tax does not apply to receipts from sales or leases to government agencies. Rather, the tax applies to the gross receipts of an agency, institution, instrumentality or political subdivision of the State of New Mexico from transactions specified by state law.

Q. What transactions are subject to New Mexico governmental gross receipts tax?

Answer:
Governmental gross receipts tax applies only to: - the sale of tangible personal property other than water from facilities open to the general public; - the performance of, or admissions to, recreational, athletic or entertainment services or events in facilities open to the general public; - refuse collection or refuse disposal, or both; - sewage services; - the sale of water by a utility owned or operated by a county, municipality or other political subdivision of the state, and - the renting of parking, docking or tie-down spaces or the granting of permission to park vehicles, tie aircraft down, or dock boats.

Q. If the gross receipts of an agency, institution, instrumentality or political subdivision of the State of New Mexico are not subject to governmental gross receipts tax, are they subject to regular gross receipts tax?

Answer:
Generally, they are not. Such gross receipts are exempt from regular gross receipts tax under Section 7-9-13 NMSA 1978 except for: - receipts from the sale of gas or electricity by a utility owned or operated by a county, municipality, or other political subdivision of a state, or - receipts from the operation of a cable television system owned or operated by a municipality.
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