SANTA FE—This afternoon, the Senate unanimously approved a bill to protect New Mexican taxpayers from “gotcha” non-taxable transaction certificate (NTTC) audits. The bipartisan House Bill 194 is sponsored by Rep. Jason Harper (R-Rio Rancho) and co-sponsored by Rep. Carl Trujillo (D-Santa Fe), Rep. Cathrynn Brown (R-Carlsbad), and Sen. Clemente Sanchez (D-Grants).
House Bill 194 allows taxpayers to provide alternative evidence to prove certain transactions are exempt from gross receipt taxes (GRT). Currently, taxpayers must maintain NTTCs for every eligible non-taxable transaction. If they cannot produce these NTTCs, or if the NTTCs are incorrect, the taxpayer must pay the tax plus any assessed penalties. Permitting taxpayers to supply alternative evidence for GRT tax exemptions will reduce the administrative burden on many New Mexico small businesses and independent contractors.
“Passage of HB 194 is a victory for New Mexico’s small businesses,” said Rep. Harper. “The state’s NTTC statute was unnecessarily cumbersome and punitive. I am grateful for the support we have received for this idea. I know this change will benefit many small business owners across the state.”