The Taxpayer was assessed for gross receipts tax for reporting periods in 2016 and 2017. The Taxpayer worked as a doctor providing contract services through two third-party staffing companies located outside the state. Because the payments he received were located out-of-state, the Taxpayer argued that and the receipts for these services were not taxable as the services were being performed outside the state and the product of the service was not initially used in New Mexico. The evidence showed, however, that the services were delivered to patients in New Mexico at hospitals located in New Mexico. That the payment came from a source outside of state did not change the fact that the individual using the product of the service was the patient located in New Mexico, and the Taxpayer was indeed performing services in the state. Having made this determination, the Hearing Officer denied the protest.
