Gross receipts are the total amount of money or value of other consideration received from the following activities:
- Selling property in New Mexico;
- Leasing or licensing property employed in New Mexico;
- Granting a right to use a franchise employed in New Mexico;
- Performing services in New Mexico, and
- Selling research and development services performed outside New Mexico, the product of which is initially used in New Mexico.
Gross receipts denote the business activity that has taken place in a given area, such as a municipality, the unincorporated area of a county or a special tax increment development district. In particular, the Hobbs Chamber’s leading indicator of commercial vitality is the state’s local government distribution of gross receipts taxes to the City of Hobbs – a monthly disbursement of the city’s share of gross receipts taxes for business activity within the city limits two months prior.
Below are links to a history of gross receipts for Hobbs and the unincorporated area of Lea County. Gross receipts generated by the industries classified by the State of New Mexico as “Retail Trade” and “Mining & Extraction” are also exhibited. Some business activities are exempt from the gross receipts tax, and other GRT deductions exist, so the entirety of the numbers reported for “Total Gross Receipts” are not necessarily the taxable gross receipts in total.
For more details on gross receipts, the gross receipts tax and more, visit www.tax.newmexico.gov.