2019 New Mexico Statutes
Chapter 7 - Taxation
Article 9 - Gross Receipts and Compensating Tax
Section 7-9-17 - Exemption; gross receipts tax; wages.

Exempted from the gross receipts tax are the receipts of employees from wages, salaries, commissions or from any other form of remuneration for personal services.

History: 1953 Comp., § 72-16A-12.5, enacted by Laws 1969, ch. 144, § 10.

Effective dates. — Laws 1969, ch. 144, § 68 made Laws 1969, ch. 144, § 10 effective July 1, 1969.

Wages, salaries, commissions and other forms of payment for personal services received by an employee are specifically exempted from gross receipts tax by this section. Eaton v. Bureau of Revenue, 1972-NMCA-114, 84 N.M. 226, 501 P.2d 670, cert. denied, 84 N.M. 219, 501 P.2d 663.

All of taxpayer's receipts, including employee's wages, taxable. — Wages paid directly to truck drivers employed by taxpayer, pursuant to hauling agreement, which were paid out of taxpayer's gross receipts and on behalf of taxpayer, a self-employed hauler, were subject to gross receipts tax, regardless of the fact that taxpayer never received such wages to distribute to his drivers. Duke v. Bureau of Revenue, 1975-NMCA-025, 87 N.M. 360, 533 P.2d 593.

Same taxation scheme used for both state and federal purposes. — When carpenter filed self-employment returns with the internal revenue service for social security purposes when customers did not withhold F.I.C.A. taxes, and filed federal income tax returns which reported income from a business or profession, the taxpayer must not attempt to show one scheme for federal tax purposes and a nontaxable event for purposes of state gross receipts tax. Stohr v. N.M. Bureau of Revenue, 1976-NMCA-118, 90 N.M. 43, 559 P.2d 420, cert. denied, 90 N.M. 254, 561 P.2d 1347 (1977).

Percentages paid jockeys not exempt. — Since by established custom in the state of New Mexico the horse owner pays the jockey on his winning mount 10% of the purse, and a jockey, during the course of a racing day, may ride in several races, riding various different horses, each of which may have a different owner and a horse owner is not required to withhold income tax from the jockey's share of the purse, pay F.I.C.A. tax, or make unemployment insurance contributions for the jockey, then commissioner of revenue (now secretary of taxation and revenue department) was within his authority in denying employee exemption to defendant. Rock v. Comm'r of Revenue, 1972-NMCA-012, 83 N.M. 478, 493 P.2d 963 (case decided before the exemption granted jockeys by 7-9-40 NMSA 1978).

Am. Jur. 2d, A.L.R. and C.J.S. references. — Tips: applicability of sales tax to "tips" or service charges added in lieu of tips, 73 A.L.R.3d 1226.