New Mexico Nonresident Contractor Gross Receipts Tax Bond
What it is & who requires it
Contractors in the construction business who do not have a principal place of business in New Mexico and who enter into a prime construction contract to be performed in the state. It attaches to the prime contract rather than to your license, so it sits on top of the state contractor license bond rather than replacing it, and an in-state contractor does not file it at all. Once the requirement is met the department issues a certificate confirming it, which is what the parties to the contract will ask you for.
Obligee: New Mexico Taxation and Revenue Department (the secretary or the secretary’s delegate). Citation: NMSA 1978 § 7-1-55 (Contractor’s bond for gross receipts; tax; penalty); § 7-1-54 (Security for payment of tax); § 7-1-57 (Surety bonds); § 7-9-4 (imposition and rate of the gross receipts tax).
Bond amount
Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
How to get it
This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
Request a bond quote
Tell us about the bond and the project. A licensed producer follows up — these bonds are individually underwritten, so they are not issued instantly.
Term & renewal
Term: Per contract rather than annual. It is furnished at the time the prime construction contract is entered into, and it secures the tax on the gross receipts from that contract.
Renewal: A new contract means a new security decision. The statute also requires an adjustment when the total sum payable under the contract changes materially after the original filing.
Filing
Furnished to the secretary of taxation and revenue at the time the prime construction contract is entered into, with a certificate issued back to you confirming the requirement has been met. Two features keep a number off this page. The sum is a formula, not a figure: the statute sets it at the gross receipts to be paid under the contract multiplied by the sum of the state gross receipts tax rate and the applicable local option rates, so it moves with the size of the job and with the rate in the jurisdiction where the work is performed. And the instrument is not fixed either — the statute says a surety bond or other acceptable security, which leaves the department a route that is not a bond at all. Note also the adjustment trigger: the statute sets a threshold change in the total sum payable under the contract, past which the security has to be revisited after you file. Authority: NMSA 1978 § 7-1-55.
Source
This bond requirement is corroborated by multiple public sources; New Mexico Taxation and Revenue Department (the secretary or the secretary’s delegate) sets the exact amount, which we confirm when you start your bond.
Related New Mexico bonds
Frequently asked questions
- Who requires the New Mexico Nonresident Contractor Gross Receipts Tax Bond?
- It’s required by New Mexico Taxation and Revenue Department (the secretary or the secretary’s delegate) (NMSA 1978 § 7-1-55 (Contractor’s bond for gross receipts; tax; penalty); § 7-1-54 (Security for payment of tax); § 7-1-57 (Surety bonds); § 7-9-4 (imposition and rate of the gross receipts tax)). Contractors in the construction business who do not have a principal place of business in New Mexico and who enter into a prime construction contract to be performed in the state. It attaches to the prime contract rather than to your license, so it sits on top of the state contractor license bond rather than replacing it, and an in-state contractor does not file it at all. Once the requirement is met the department issues a certificate confirming it, which is what the parties to the contract will ask you for.
- How much is the New Mexico Nonresident Contractor Gross Receipts Tax Bond?
- Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
- How do I get the New Mexico Nonresident Contractor Gross Receipts Tax Bond?
- This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
- What is the term?
- Per contract rather than annual. It is furnished at the time the prime construction contract is entered into, and it secures the tax on the gross receipts from that contract. Renewal: A new contract means a new security decision. The statute also requires an adjustment when the total sum payable under the contract changes materially after the original filing.
- Is this bond insurance for me?
- No. It protects the obligee and the public — not you. If a valid claim is paid, you repay the surety.
- How is this requirement verified?
- This bond requirement is corroborated by multiple public sources. The obligee sets the exact amount, which we confirm automatically when you start your bond in the portal or with a producer.
