us-nm/stat
NMSA 1978, § 7-1-55 — Contractor's bond for gross receipts; tax; penalty
A.
A person engaged in the construction business who does not have a principal
place of business in New Mexico and who enters into a prime construction contract to
be performed in this state shall, at the time such contract is entered into, furnish the
secretary or the secretary's delegate with a surety bond, or other acceptable security, in
a sum equivalent to the gross receipts to be paid under the contract multiplied by the
sum of the applicable rate of the gross receipts tax imposed by Section 7-9-4 NMSA
1978 plus the applicable rate or rates of tax imposed pursuant to local option gross
receipts taxes to secure payment of the tax imposed on the gross receipts from the
contract and shall obtain a certificate from the secretary or the secretary's delegate that
the requirements of this subsection have been met.
B.
If the total sum to be paid under the contract is changed by ten percent or more
subsequent to the date the surety bond or other acceptable security is furnished to the
secretary or the secretary's delegate, such person shall increase or decrease, as the
case may be, the amount of the bond or security within fourteen days after the change.
C.
If a person fails to comply with Subsection A or B of this section, the secretary or
the secretary's delegate:
(1) may demand of the person by certified mail or in person that the person
comply. Upon the failure of the person to comply within ten days of the date of the
mailing of such demand, the secretary may institute a proceeding to enjoin the person
from doing business as provided in Section 7-1-53 NMSA 1978; or
(2) may, when a serious and immediate risk exists that an amount of tax due
or reasonably expected to become due from the person on gross receipts from a prime
construction contract will not be paid, request the person to comply with Subsections A
and B of this section, and, upon failure immediately to comply, the secretary may,
without further notice of any kind, apply to any district court of the state for an injunction
as provided in Section 7-1-53 NMSA 1978.
D.
Subsections A, B and C of this section shall not apply if the total gross receipts to
be paid under the construction contract, including any change in such amount, are less
than fifty thousand dollars ($50,000).
E.
As used in this section, "construction" shall have the meaning set forth in Section
7-9-3.4 NMSA 1978 and "engaging in business" shall have the meaning set forth in
Section 7-9-3.3 NMSA 1978.
F.
A municipality or other political subdivision of the state or any agency of the state
shall not issue a building or other construction permit to any person subject to the
requirements of Subsection A of this section without first having been furnished by the
construction contractor with the certificate from the secretary or the secretary's delegate
specified in Subsection A of this section. Any person who issues any such permit before
receiving the certificate shall be deemed guilty of a misdemeanor and, upon conviction,
be fined not less than fifty dollars ($50.00) nor more than one hundred dollars ($100) for
each offense.
Source: official text