Differences Between Gross Receipts Tax and Sales Tax in New Mexico
New Mexico imposes a gross receipts tax instead of a sales tax. This tax applies to businesses operating in New Mexico. The gross receipts tax rate varies from 5% to 9.3125%, depending on the location. It is imposed on the total gross receipts from selling goods and services in New Mexico.
Process of Paying Gross Receipts Taxes in NM
Businesses collect the tax from customers and send it to the New Mexico Taxation and Revenue Department. To comply, businesses need a New Mexico tax identification number. Obtain this by registering your business with the New Mexico Secretary of State for a $50 fee. You can conveniently pay gross receipts tax online when filing returns. Call 1-866-809-2335 for help with payment or returns. Some customers like government agencies and nonprofits are exempt from paying the tax.
Potential Rate Change and Filing Extensions
The statewide gross receipts tax rate may soon drop 0.25% to 4.875%. This would be the first rate change since 2010. New Mexico grants filing extensions matching federal personal tax extensions. So if you have a federal extension, you automatically get one for New Mexico too.