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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New 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 readingRestaurants Slow to Take Pandemic GRT Deduction
According to the New Mexico Restaurant Association, only 500 restaurants in the state have taken advantage of the Gross Receipts Tax Deduction/Rebate that was authorized by the state legislature to aid pandemic-impacted New Mexico restaurants.
Senate Bill 1, passed during the 2021 legislative session, allows restaurants to keep as a tax deduction the gross receipts tax charged for sales of prepared food and drinks made after March 1, 2021 and before July 1, 2021. Fast-food restaurants are not eligible, however, mobile and food truck businesses can take the deduction.
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