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I recently sold some personal property (totaling a few hundred dollars) as a resident in New Mexico and was under the impression that, even for private and non-business transactions, the state gross receipts tax would apply. However, when I looked into it, I kept finding on official documents that collection of gross receipts tax is tied closely to a business identity and have found no indication that individuals can pay gross receipts tax without a business identity, or at least I have not found where such instructions exist.

As an example, at the bottom of the second page of the instructions for filing a personal income tax form, under the "New Mexico Gross Receipts Tax" heading, the following text is found.

If you are self-employed, run a business out of your home, or work for someone else but do not have wage taxes withheld, you may be required to register with the Department for gross receipts tax. Businesses that sell or lease goods and other tangible property or perform services in New Mexico may be subject to New Mexico gross receipts tax. All businesses having a gross receipts tax reporting obligation must register with the New Mexico Taxation and Revenue Department to obtain a tax identification number, tax reporting forms and instructions. For more in-formation please contact your local Taxation and Revenue Office.

So does gross receipts tax only apply in New Mexico if you are running a business? Is personal income from the sale of personal property not attached to any business dealings not subject to gross receipts tax? (Though I guess it is probably still subject to personal income tax.)

I acknowledge that given answers are for general instructions and thoughts and not intended to be legal advice.

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According to New Mexico Statutes Chapter 7. Taxation § 7-9-28:

Exempted from the gross receipts tax are the receipts from the isolated or occasional sale of or leasing of property or a service by a person who is neither regularly engaged nor holding himself out as engaged in the business of selling or leasing the same or similar property or service.

If the meaning of this is not clear to you, please consult an accountant or attorney who is versed in NM tax code.

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