Senate Bill 1, passed by the New Mexico Legislature and signed into law by Gov. Michelle Lujan Grisham, allows New Mexico restaurants to take a Gross Receipts Tax deduction for sales of prepared food and drinks made after March 1, 2021 and before July 1, 2021. Restaurants can take the deduction immediately.
During the four-month period that the deduction is available, restaurants may choose either to not charge GRT or to charge the tax and keep the amount charged. Most eligible businesses are expected to keep the tax as financial relief and to help them expand within the red-to-turquoise emergency health orders.
Fast-food restaurants are not eligible, however, mobile and food-truck businesses can take the deduction. The New Mexico Tax & Revenue Department outlines all of the rules in its announcement B-100.39.
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