Isn't New Mexico gross receipts tax the same as sales tax?

Not exactly!

Gross receipts tax (GRT) applies to all businesses operating in New Mexico or having sales to customers in New Mexico. But GRT is not the same as sales tax. In most states, sales tax applies only to sales of goods. The main difference from sales tax is that GRT also applies to sales of services.

It's important to note that individuals who are independent contractors are considered to be in business.

There are some unexpected interpretations of what are services. One example is that construction activity is considered to be providing services. Another is that commissions are subject to GRT even if the sales on which they are based are also subject to GRT.

Tip. Even though exempt gross receipts are not reportable, they should be reported. That’s because the N.M. Taxation & Revenue Dept. (TRD) compares reported to the IRS with gross receipts reported to the TRD. Any instance of under-reporting causes the state to conduct an audit to determine the apparent amount of GRT owed by the seller. To prevent exempt sales from being taxes, they are deducted from total sales.

Important: Deductions for determining taxable gross receipts should not be confused with deductions of business expenses income tax returns.