Do non-profits and government agencies have to pay gross receipts tax?

No & Yes!

No - 501(c)(3) & 501(c)(6) organizations and government agencies do not pay gross receipts tax on tangibles they purchase. To take advantage of this deduction the organization must provide the seller with a Nontaxable Transaction Certificate Type 9.

Yes - Services sold to 501(c)(3)'s & & 501(c)(6)'s and government agencies are subject to gross receipts tax. This is one of the aspects of N.M. gross receipts tax law that is different from most other states' sales tax.

It's important to remember that gross receipts that are deductible must reported and then subtracted on the reporting form to determine taxable gross receipts.