New Mexico Contractor License Exam — All Questions
5 questions
What license bond amount does New Mexico generally require a licensed contractor to maintain?
- a.$2,500
- b.$10,000✓
- c.$50,000
- d.No bond is required
New Mexico generally requires a licensed contractor to file and maintain a $10,000 license bond with the Construction Industries Division. The bond protects the public and the state against violations of the licensing law and must be kept current.NMSA Ch. 60, Art. 13; NMAC 14.6 (license bond)
Under New Mexico's Workers' Compensation Act, an employer generally must carry workers' compensation coverage once it regularly employs how many workers?
- a.Ten or more
- b.Five or more
- c.Three or more✓
- d.Coverage is never required for contractors
New Mexico generally requires workers' compensation coverage for employers that regularly employ three or more workers. Construction employers should confirm their obligation with the Workers' Compensation Administration, since a growing crew can cross the threshold quickly.New Mexico Workers' Compensation Act
Which statement about the New Mexico Business and Law exam is correct?
- a.It is open book, 50 questions, 130 minutes, and requires 75% to pass✓
- b.It is closed book and requires only 60% to pass
- c.It is an untimed take-home essay
- d.It is waived for anyone who holds any out-of-state license
The New Mexico Business and Law exam is open book, 50 questions, 130 minutes, with a 75% (38 of 50) passing score. Candidates may bring the allowed references but should answer New Mexico questions from the New Mexico code.CID examination format
In addition to passing the Business and Law exam, what must a New Mexico general building applicant complete to be licensed?
- a.Only pay a fee; no other exam or experience is required
- b.Pass the New Mexico bar examination
- c.Retake the NASCLA exam every year
- d.Meet the experience requirement and pass the New Mexico trade exam (GB-98 or GB-2) for the classification, through a Qualifying Party✓
A New Mexico general building applicant must, through a Qualifying Party, meet the experience requirement and pass both the Business and Law exam and the New Mexico trade examination (GB-98 or GB-2) for the classification sought. NASCLA does not substitute for the trade exam.NMSA Ch. 60, Art. 13 (experience and exams)
Before doing business in New Mexico, a contractor should register for which state tax account?
- a.A state business tax account to report Gross Receipts Tax on its receipts✓
- b.A retail sales tax permit, because New Mexico's sales tax is 8%
- c.No account, because construction is exempt from all New Mexico taxes
- d.A federal-only excise account with the IRS
Because New Mexico taxes business receipts through the Gross Receipts Tax (NMSA Chapter 7) rather than a sales tax, a contractor must register for a state business tax account and report GRT on its gross receipts. This is a routine but essential compliance step.NMSA Ch. 7 (business tax registration)