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  3. Shotblast Southwest Inc.

Shotblast Southwest Inc.



The Taxpayer is an S corporation organized in New Mexico, who provides a service of shotblasting commercial concrete flooring and coating them with epoxy or urethane.  The Department audited the Taxpayer for tax periods January 31, 2002, through March 21, 2008.  On September 28, 2009, the Department assessed the Taxpayer for unpaid gross receipts tax, penalty and interest.  The Taxpayer filed a written protest to the assessment.  The Taxpayer presented several arguments as to why he was not liable for the assessment including that his customers refused to pay the tax and his unfamiliarity with the tax laws. Taxpayer also presented several hardship arguments as to why he should not have to pay the assessment. Because the gross receipts tax is a tax imposed on the seller, not the buyer, the arguments do not change the Taxpayer’s tax liability.  Taxpayer also questioned the his responsibility to pay tax when providing a construction service to a government agency. Sales of any services, not just construction services, to a government agency are fully taxable.  Based upon a review of these arguments, the hearing officer found no basis for abatement of the assessment.  The Taxpayer’s protest was denied.