Government Gross Receipts Tax (GGRT)
GGRT is imposed on the University of New Mexico by the State of New Mexico on the following transactions:
- Sale of tangible personal property, other than water, from facilities open to the general public;
- Performance of or admissions to recreational, athletic or entertainment services or events in facilities open to the general public;
- Refuse collection, refuse disposal or both;
- Sewage services
- Sale of water by a utility owned or operated by a county, municipality or other political subdivision of the state; and
- The renting of parking, docking or tie-down spaces or the granting of permission to park vehicles, tie-down aircraft or dock boats.
(NM Regulation 7-9-3.2)
Governmental gross receipts includes receipts from the sale of tangible personal property handled on consignment when sold from facilities open to the general public but excludes cash discounts taken and allowed, governmental gross receipts tax payable on transactions reportable for the period and any type of time-price differential.
As used above, facilities open to the general public does not include point of sale registers or electronic devices at a bookstore owned or operated by a public post-secondary educational institution when the registers or devices are utilized in the sale of textbooks or other materials required for courses at the institution to a student enrolled at the institution who displays a valid student identification card.
In general, sales of copies are subject to Governmental Gross Receipts tax. Please contact Taxation with any questions.
Two types of sales must be reported on the governmental gross receipts tax return but are deductible from taxable receipts and are not subject to the tax:
- Sales to New Mexico organizations who provide an appropriate non-taxable transaction certificate (NTTC) are the first category. Your department should accept NTTC's from institutional purchasers. We recommend you send copies of your NTTC's to Taxation Department.
- Sales outside of the State of New Mexico in interstate commerce are the second category.
New Mexico statutes have a provision regarding "good faith" acceptance of non-taxable transaction certificates. In essence, the statute says that sellers have a duty to monitor transactions. If a seller has reason to know that usage by a buyer is not covered by the non-taxable transaction certificate, then the seller cannot rely on the certificate to exempt sale(s).
Please note: if a sale is subject to GGRT, then so is the related "Shipping & Handling."
UNM Departments are required to maintain records of their receipts for at least 3 years after the end of the year in which the tax was due. However, the New Mexico Taxation and Revenue Department can assess tax back from 6 - 10 years under conditions of under-reporting by at least 25%, non-filed reports, and/or tax fraud.
Governmental gross receipts tax is assessed at 5% of gross revenue (i.e., what you charge for the book, video or ticket). The charge to customers may either include the tax or the tax may be added to the list price. The State of New Mexico does not require that you separately state the tax. Each UNM department has the option of separately recording the tax collected in the University’s accounting records.
Governmental gross receipts tax is computed and remitted to the New Mexico Taxation and Revenue Department on a monthly basis following the month of receipt. Each department’s allocable share of tax is charged to the department. Additionally, an accounting charge of .20% (.0020) of taxable receipts is assessed each department.