Is it true that independent contractors owe New Mexico gross receipts taxes?

Yes!  Income from the sale of services is taxed differently in New Mexico than in most other states. Businesses in New Mexico receiving income from services provided to buyers located within New Mexico are subject to N.M. Gross Receipts Tax (GRT). Income from self-employment is affected. Independent contractor income is affected.

Note: Gross receipts from the sale of services to non-profit organizations and government entities are subject to N.M. Gross Receipts Tax even though those organizations do not have to pay tax on the merchandise they purchase.

Businesses must register. 

If you live in New Mexico and receive income from your services (unless you receive a Form W-2) you are required to register your business with the N.M. Taxation & Revenue Dept., report your gross receipts and pay Gross Receipts Tax.

Overlooking this tax can be costly.

Those businesses not already reporting their gross receipts to the N.M. Taxation & Revenue Dept. will be audited. That's because the N.M. Taxation & Revenue Dept. (TRD) receives information from the IRS about anyone living in New Mexico who files Schedule C.  The TRD then matches gross receipts (aka sales on the federal income tax return to gross receipts reported to the state. A discrepancy will cause the TRD to audit the business's gross receipts.

Important: A business that employs the services of an independent will usually be required to send you a Form 1099-NEC and file a copy with the IRS as well. As a consequence the IRS will expect you to file a Schedule C, Profit or Loss from Business, with your Federal Individual Income Tax Return. 

Amnesty of sorts.

Once an audit begins the taxpayer will not qualify for the N.M. Managed Audit law, which is effectively an amnesty with respect to penalties and interest applicable to delinquent tax returns.