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An exemption means that certain receipts are not taxable and do not need to be reported on your gross receipts tax return (Form TRD-41413). If all your receipts are exempt, you generally do not need to register with the New Mexico Taxation and Revenue Department for gross receipts tax purposes. However, you may still need to register for withholding tax or to obtain nontaxable transaction certificates. If you have a mix of exempt, deductible, and taxable receipts, you must register and report only the deductible and taxable amounts.

Here is a list of specific exemptions from the gross receipts tax:

Agricultural Exemptions:

• Sales of livestock, live poultry, unprocessed agricultural products, hides, or pelts.
• Receipts from feeding or pasturing livestock.

Athletic Facility Surcharge Exemption:

• Receipts of a university from an athletic facility surcharge.

Disabled Street Vendor Exemption:

• Receipts of disabled street vendors from the sale of goods.

Food Stamp Exemption:

• Receipts from the redemption of food stamps.

Fuel Exemptions:

• Use of fuel on which the gasoline, special fuel, or alternative fuel tax has been paid.
• Sales of fuel, oxidizer, or a combination for space vehicle propulsion.

Governmental Entity Exemptions:

• Receipts of the federal government, State of New Mexico, Indian nations, tribes, or pueblos, or their agencies, from activities on their sovereign territory.
• Receipts of instrumentalities of the U.S. armed forces.
• Sales to Indian nations, tribes, or pueblos, or to their members, are exempt if the transaction takes place on the tribe’s territory.

Insurance Company and Bail Bondsman Exemption:

• Receipts of insurance companies from premiums and property bondsmen from bail bond security.

Interest and Dividend Exemption:

• Interest on loans or deposits, dividends, and receipts from the sale of stocks, bonds, or securities.

Interstate Telecommunications Services Exemption:

• Receipts from interstate telecommunications services.

Isolated or Occasional Sale Exemption:

• Receipts from isolated or occasional sales by someone not in the business of selling similar property or services.

Mobile Telecommunications Services Exemption:

• Receipts from providing mobile telecommunications services to customers whose primary use is outside New Mexico.

Municipal Event Center Surcharge Exemption:

• Receipts from sales at a municipal event center when a surcharge is imposed.

Nonprofit Organization Exemptions:

• Receipts of 501(c)(3) and certain 501(c)(6) organizations.
• Dues and registration fees of nonprofit social, fraternal, political, trade, labor, or professional organizations.
• Receipts of ministers from religious services.
• Receipts of homeowners’ associations from membership fees.
• Receipts from nonprofit hospitals, from local option gross receipts tax.

Oil, Natural Gas, and Mineral Exemptions:

• Sales of certain oil, natural gas, and mineral products for resale or use in manufacturing.
• Receipts from the sale or processing of products subject to the Natural Gas Processors Tax Act.
• Sales or leases of oil, natural gas, or mineral interests.
• Sales of oil, natural gas, or liquid hydrocarbons consumed as fuel in pipeline transportation.

Out-of-State Certain Services Exemption:

• Receipts from research and development services performed outside New Mexico under specific conditions.

Racetrack Exemption:

• Receipts of horsemen, jockeys, and trainers from race purses and racetracks from gross amounts wagered.

School Event Services Exemption:

• Receipts from officiating at school events.

Stadium Exemption:

• Receipts from sales at a minor league baseball stadium when a surcharge is imposed.

Textbook Exemption:

• Receipts of certain bookstores from selling textbooks to students.

Vehicle, Boat, and Fuel Exemptions:

• Sales of vehicles subject to the motor vehicle excise tax and certain exempt vehicles.
• Sales of boats subject to the boat excise tax.

Wage Exemption:

• Receipts of employees from wages and salaries, including commissions.