What is an agent for the collection of compensating tax, and what is required?

If the taxpayer has nexus with New Mexico, but the sales transaction is not subject to gross receipts tax, the taxpayer may be obligated to act as an agent for the collection of compensating tax. By New Mexico law, Section 7-9-10 NMSA 1978 the taxpayer is required to collect compensating tax from the buyer and pay it to TRD.