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.
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New Mexico GRT – Confusing for Many
New Mexico’s Gross Receipts Tax system has always been somewhat confusing. Unlike many states that require businesses to collect a tax on product sales (referred to as a sales tax), New Mexico’s tax applies to the sale of products and services.
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.
Continue readingGross Receipts Tax Problems Solved
The New Mexico Tax & Revenue Department aims to help businesses understand gross receipts taxes and comply with destination sourced reporting that was introduced in 2019 and 2020.
Continue readingNew Mexico Tax Holiday Coming
State law encourages holiday shoppers in New Mexico to buy from local merchants on the Saturday after Thanksgiving by providing a one-day gross receipts tax (GRT) exemption on qualifying purchases under $500. The law gives locals an incentive to support small, independent storefront retailers. For small businesses that have 10 or fewer employees, it’s a chance to give customers a discount without giving up revenue.
Continue readingConfused About Gross Receipts Tax Changes?
Effective July 1, 2021, New Mexico changed Gross Receipts Tax (GRT) regulations to “destination sourcing,” which requires most businesses to calculate and report GRT based on where their goods or the product of their services are delivered. Prior to July 1, New Mexico used “origin-based sourcing” in which most GRT was reported at the seller’s place of business.
To help businesses navigate the new rules, the Economic Development Department is hosting a webinar by the New Mexico Taxation and Revenue Department to provide insight and answer questions about how businesses can comply.
Continue readingTax Changes Start July 1
The New Mexico Taxation and Revenue Department (TRD) and the New Mexico Economic Development Department (EDD) will hold a webinar on Wednesday, June 23, to assist businesses with transitioning to the new source-based gross receipts tax system and revised reporting website brought about by statutory changes that take effect on July 1, 2021. On that date, businesses will begin charging state, local, and special-district taxes based on the rates in effect where their goods or services are delivered.
Continue readingNM Restaurants Can Take GRT Deduction Now
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.
Continue readingWorkshops Help New Businesses Understand Tax Law
New employers can find it confusing to navigate New Mexico’s system for computing, reporting and paying business taxes. But the state Tax and Revenue Department expects them to figure it out and comply.
To simplify the process, the TRD offers free workshops, including one in Albuquerque on January 28 that promises to give new employers an overview of state tax laws, walk them through basic legal requirements for workers’ compensation insurance and workplace safety and show them how to add up what they owe on the sales of products or services.
Taxing gross revenue
New Mexico doesn’t have the traditional sales tax most states do. Rather than assessing the buyer a percentage of his or her purchase price, New Mexico requires the seller of a product or service to collect that add-on fee—the gross receipts tax or GRT—and pay it directly to the state. Continue reading
One-Day Tax Holiday Aims to Draw Consumers to Hometown Businesses
Article by Sandy Nelson
Once the frenzy of Black Friday fades, Small Business Saturday aims to attract shoppers to local merchants whose stores serve hometown retail needs — not just to keep those businesses healthy in today’s hypercompetitive retail environment but also to generate tax revenue that provides vital community services.
To stoke that fire, the 2018 New Mexico Legislature passed a law authorizing a one-day tax holiday that will remove state gross receipts taxes from a variety of retail products on the Saturday after Thanksgiving — one of the year’s busiest shopping days, when many people hunt for the best deals on holiday gifts — from 2018 through 2020. Continue reading