Aspen Management Company Inc.

23-15

On July 19, 2018, the Department assessed the Taxpayer for gross receipts tax, penalty, and interest for periods starting in 2023 through 2017. On October 15, 2018, the Taxpayer filed a timely protest with the Department. The Taxpayer is a for-profit corporation that was established to assist with the operations of a non-profit licensed cannabis producer. The Taxpayer argues that they are eligible for the deduction under Sections 7-9-17, 7-9-25, and 7-9-69 NMSA 1978, that due to disclosed agency the transactions do not fit the definition of gross receipts under Section 7-9-3.5 NMSA 1978, and that the two companies should be taxed based on its substance and not its form. The Hearing Officer determined that based on the evidence provided the Taxpayer did not establish entitlement to any statutory deduction or exemption provided and that the transactions in question do fit the definition of gross receipts. The Hearing Officer determined that the protest is denied.