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If a business sells a service or leases property to a federal, NM or tribal government agency, are the gross receipts from that sale or lease subject to NM governmental gross receipts tax?

No. Governmental gross receipts tax does not apply to receipts from sales or leases to government agencies. Rather, the tax applies to the gross receipts of an agency, institution, instrumentality or political subdivision of the State of New Mexico from transactions specified by state law.

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