The Taxpayer is a corporation domiciled in Illinois, who sells medical alarm monitoring services. It began selling these services in New Mexico in January 2000. In January 2008, the Taxpayer registered with the Department and began filing and remitting gross receipts taxes on the services it performs in New Mexico. In May 2008, the Department conducted a desk audit of the Taxpayer, and on July 3, 2008, assessed the Taxpayer for gross receipts tax, penalty and interest for tax years January 31, 2001 through December 31, 2007. The Taxpayer filed a protest to the assessment. The Taxpayer has no offices, employees, stores, or other presence of that nature in New Mexico. The service provided by the Taxpayer is to monitor medical alarm equipment it installs in a customer’s residence. The Taxpayer charges a monthly fee for monitoring of and use of an alarm console, pendant, or wristband transmitter, as well as a fee for responding to emergency calls made by the customer. The Taxpayer retains ownership of the medical alarm equipment and is responsible for repairing that equipment. The call center responsible for monitoring emergency calls from New Mexico customers is in California. The issue to be determined is whether the services provided by the Taxpayer are performed in New Mexico or in California. The nature of the Taxpayer’s business, and the services it provides to its New Mexico customers, demonstrate that the Taxpayer’s services are performed in New Mexico. The Taxpayer’s protest was denied.
American Medical Alarms, Inc.