Texas Payroll Provider for Chevron Liable for New Mexico Tax

A Houston employment agency that performed payroll services for Chevron contractors is liable for about $350,000 in gross receipts tax because the services were “incidental” to the employment of the contractors in New Mexico, an appeals court there said Monday.

Talbridge Corp. was the official employer of the New Mexico-based contractors working for Chevron and performed payroll services outside the state. Talbridge said it wasn’t liable for tax on those services because they were done out-of-state.

The corporation’s services were consumed by the employees within New Mexico, which means the services were incidental to the employment of the contractors and ...