On December 1, 2014, the Department assessed the Taxpayer for gross receipts tax, penalty and interest for the CRS reporting periods from January 31, 2008 through December 31, 2013. On December 15, 2014, the Taxpayer protested the assessment. The Taxpayer provides architectural services as part of design-build construction contracts. The Taxpayer’s services were resold by the general contractor and the contractor paid the gross receipts tax associated with the design-build contract. The Taxpayer requested nontaxable transaction certificates (NTTCs) from the general contractors under the projects. The Taxpayer timey possessed properly executed Type 6 NTTCs from the various contractors it provided architectural design services to as part of design-build contracts. In 2014, the Department selected the Taxpayer for an audit of gross receipts tax, compensating tax, and withholding tax for the reporting periods from January 1, 2008 through December 31, 2013. Upon audit, the Department disallowed the deductions where the Taxpayer possessed Type 6 NTTCs because a Type 5 NTTC would be the necessary certificate to support the deduction of receipts from the sale of a service for resale. Because of a statutory change in 2012, architectural services now fall under the construction service for resale deduction, which is covered by a Type 6 NTTC. The Taxpayer argued that it is entitled to claim the deduction because it timely accepted the Type 6 NTTCs in good faith. The Department argued that the Taxpayer did not demonstrate that it accepted the Type 6 NTTC in good faith, and should have known that a Type 5 NTTC was required. The hearing officer found that the Taxpayer’s acceptance of the Type 6 NTTC was in good faith as provided in Section 7-9-43(A) NMSA 1978. The Taxpayer’s protest was granted.