Gross receipts tax to state?

[jeb9999]

I've been a fulltime trader for many years, and am now getting a notice from the state of NM for gross receipts tax on my revenues (pre-business expenses) for a given year.

I've never paid a gross receipts tax in NM or IL, and when I was using an accountant in IL who specialized in trading accounts, he never applied a gross receipts tax to my state returns.

Is this a legit tax, and if not, what would be my appropriate response?

Here is what you need to now and the legal citation:

Partial List of NM Gross Receipts Tax & Sales Tax Exemptions
New Mexico Taxation and Revenue Department

Interest and Dividend Exemption

Interest on money loaned or deposited; dividends or interest from stocks, bonds or
securities; and receipts from the sale of stocks, bonds or securities (7-9-25).




Section 7-9-25 Exemption Gross Receipts Tax Dividends And Interest

7-9-25. Exemption; gross receipts tax; dividends and interest.

Exempted from the gross receipts tax are the receipts received as interest on money loaned or deposited, receipts received as dividends or interest from stocks, bonds or securities or receipts from the sale of stocks, bonds or securities.


http://www.socratek.com/StateLaws.a...ion Gross Receipts Tax Dividends And Interest

 

[Aisone]

Here is what you need to now and the legal citation:

Partial List of NM Gross Receipts Tax & Sales Tax Exemptions
New Mexico Taxation and Revenue Department

Interest and Dividend Exemption

Interest on money loaned or deposited; dividends or interest from stocks, bonds or
securities; and receipts from the sale of stocks, bonds or securities (7-9-25).




Section 7-9-25 Exemption Gross Receipts Tax Dividends And Interest

7-9-25. Exemption; gross receipts tax; dividends and interest.

Exempted from the gross receipts tax are the receipts received as interest on money loaned or deposited, receipts received as dividends or interest from stocks, bonds or securities or receipts from the sale of stocks, bonds or securities.


http://www.socratek.com/StateLaws.a...ion Gross Receipts Tax Dividends And Interest

Outstanding, jeb9999! I very much appreciate you taking the time to find and post this. I expect to talk with the rep tomorrow and it's really nice (understatement) to be able to refer to this. I'll post more when I have an update.

 

[sprstpd]

Partial List of NM Gross Receipts Tax & Sales Tax Exemptions
New Mexico Taxation and Revenue Department

Nice find!

 

[Aisone]

Update 9/3/14: Jeb9999 was spot on. I told them my income was from securities trades, forwarded the tax code found by Jeb9999, and was in turn asked for proof that this income was indeed from securities trades. After submitting my brokerage's reports detailing the years' trades, etc, I was cleared and sent a letter that the case for these years is closed.

Thanks again, Jeb9999!