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  3. New Mexico Healthy Home Builders Inc.

New Mexico Healthy Home Builders Inc.



The Taxpayer is a New Mexico corporation engaged in the business of residential and commercial construction and remodeling.  The Taxpayer contracted in 2006 to remodel cabins, was billed directly for materials and supplies paying gross receipts tax to the suppliers and received reimbursement from the project owner. The Taxpayer reported and timely paid its gross receipts and withholding and then filed amended monthly tax reports requesting a refund of a portion of the taxes paid claiming it was a disclosed agent for the owner had doubly paid taxes. The Department denied the refund. The reimbursements were receipts from engaging in business and therefore subject to gross receipts tax.  The reimbursements were not received by the Taxpayer in a disclosed agency capacity as there were no contracts between suppliers and the Taxpayer indicating a disclosed agency relationship.  The imposition of gross receipts tax on reimbursed expensed does not constitute unconstitutional double taxation. The Taxpayer’s protest was denied.