Bienvenidos Resort Inc.

00-21

Taxpayer is engaged in the business of renting apartments.  Taxpayer started business with two apartment units in 1991. At that time the Taxpayer was told by the Department to register for payment of gross receipts tax. In 1992 or 1993, the Taxpayer acquired a third apartment unit and was told by the Department that his method of reporting the tax was unchanged. In 1997 or 1998 the tax preparer for the Taxpayer questioned why he was paying gross receipts tax and told him these receipts were deductible. After confirming this information with the Department the Taxpayer filed a claim for refund for periods August 1992 through October 1999. The Department partially granted the Taxpayer’s claim for refund for reporting periods December 1996 through October 1999. At the same time the Department partially denied the Taxpayer’s claim for refund for the report period August 1992 through November 1996, because it was not filed within three years of the end of the calendar year in which the tax was due (Section 7-1-26). The Taxpayer protested this denial claiming the Department misled the Taxpayer into paying tax it did not owe.  Held:  The facts of this case did not establish a basis for applying equitable estoppel against the Department since New Mexico’s tax laws are a matter of public record available to all of the state’s taxpayers.  Protest Denied.