Enchantment Custom Hoof Care

14-21

On February 26, 2009, after completing a limited-scope audit, the Department assessed the Taxpayer for gross receipts tax and interest for the tax periods ending December 31, 2005, and December 31, 2006.  On March 9, 2009, the Taxpayer filed a protest to the assessments.  During the period in question, the Taxpayer was engaged in business selling cattle hoof trimming services to local dairies.  The Taxpayer argues that its receipts are exempt or deductible.  The Taxpayer pointed to several sections of statute as evidence of applicable exemptions and deductions.  The first, Section 7-9-18 NMSA 1978, is an exemption for receipts from the sale of livestock, agricultural products, and similar items.  The second, Section 7-9-19 NMSA 1978, is an exemption for receipts from feeding and handling livestock prior to sale.   The third, Section 7-9-59 NMSA 1978, is a deduction for receipts from growing, cultivating or harvesting agricultural products.   The hearing officer found that none of these exemptions or deductions applied to the Taxpayer’s receipts from selling hoof trimming services.  The Taxpayer’s protest was denied.