Often asked: What Is The New Mexico Gross Receipts Tax?

Who must pay New Mexico gross receipts tax?

If you have no business location or resident salesperson but are liable for gross receipts tax (for instance, because you lease property used in New Mexico or perform a non-construction service in New Mexico), you are liable for tax at the rate for out-of-state businesses, the state gross receipts tax rate of 5.125%.

What is the gross receipts tax rate in Albuquerque New Mexico?

Gross Receipts Tax / Compensating Tax (Sales & Use Tax): Albuquerque Metro Area Gross Receipts Tax range: 6.375% – 8.675% City of Albuquerque Gross Receipts Tax rate: 7.875%

What is Santa Fe NM gross receipts tax?

Eligible businesses can choose to not charge gross receipts tax on the deductible receipts or to charge the tax but keep the amount charged, which is 8.4375 percent of taxable sales in Santa Fe, the taxation department spelled out it its guidelines.

How do I file gross receipts tax in New Mexico?

A gross receipts tax permit can be obtained by registering for a CRS Identification Number online or submitting the paper form ACD-31015. After registering, the business will be issued a Combined Reporting System (CRS) Number, sometimes known as a New Mexico Tax Identification Number.

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Is New Mexico gross receipts tax the same as sales tax?

New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico. In almost every case, the person engaged in business passes the tax to the consumer either separately stated or as part of the selling price.

What is the difference between gross receipts tax and sales tax?

A gross receipts tax is often compared to a sales tax; the difference is that a gross receipts tax is levied upon the seller of goods or services, while a sales tax is nominally levied upon the buyer (although both are usually collected and paid to the government by the seller).

What is the New Mexico tax rate?

The New Mexico (NM) state sales tax rate is currently 5.125%. Depending on local municipalities, the total tax rate can be as high as 9.0625%. New Mexico has a gross receipts tax that is imposed on persons engaged in business in New Mexico.

How do you calculate gross receipts tax?

To calculate the sales tax that is included in a company’s receipts, divide the total amount received (for the items that are subject to sales tax) by “1 + the sales tax rate”. In other words, if the sales tax rate is 6%, divide the sales taxable receipts by 1.06.

Is New Mexico gross receipts tax deductible?

The tax is imposed on the gross receipts of businesses or people who sell property, perform services, lease or license property or license a franchise in New Mexico. Gross receipts are taxable, exempt or deductible. The receipt is taxable if no specific exemption or deduction applies to it.

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What is the difference between an excise tax and a sales tax?

Sales tax applies to almost anything you purchase while excise tax only applies to specific goods and services. Sales tax is typically applied as a percentage of the sales price while excise tax is usually applied at a per unit rate.

What is NM excise tax?

The Motor Vehicle Excise Tax applies to the sale of every motor vehicle that must be registered in the State of New Mexico. We presume that every time a vehicle is titled, a sale has occurred and the motor vehicle excise tax is due. The tax is 4% of the price paid for the vehicle less any trade-in credit.

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