The New Mexico gross receipts tax rate will decrease by .125 percent effective July 1, 2023. This is the second decrease enabled by legislation passed in 2022, and it affects every business and purchaser in the state. Often thought of as a sales tax, GRT is slightly different because it applies to the sale of services, as well as tangible items.
GRT in any location is comprised of the state rate, which is decreasing from 5 percent to 4.875 percent, plus local option rates that have been assessed by municipalities, counties, water districts, and other local authorities. GRT rates in the state now range from 5.25 percent in unincorporated areas of Lincoln and Lea counties, to 8.9375 percent in the Village of Taos Ski Valley.
The new GRT table can be found here, and all previous GRT tables are at www.tax.newmexico.gov.
Businesses are reminded that in July 2021, the state changed to “destination-sourced” GRT, which requires most businesses to calculate and report GRT based on where their goods or the product of their services are delivered.