Unlike many states that require businesses to collect a tax on products sold (referred to as a sales tax), New Mexico imposes the state’s Gross Receipts Tax (GRT) that must be collected on the sale of products AND services. Sell advice or IT services, even if you don’t sell a tangible product? New Mexico’s GRT must be added to the amount your client will pay.
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Businesses Must Pay Gross Receipts Tax; Learn How
Businesses, both old and new, must pay Gross Receipts Taxes to the State of New Mexico when they sell a product or service in New Mexico. GRT differs from sales taxes charged by other states in that it applies to all sales – not just tangible items. The business development organization WESST is offering an online workshop at noon on March 7, 2025, to help small business owners understand their GRT obligation.
Continue readingState Lowers GRT Rate
The gross receipts tax rate was decreased by .125 percent by the State of New Mexico effective July 1, 2022. The decrease 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.
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