Yes, New Mexico is a state located in the southwestern region of the United States. It became the 47th state to join the Union on January 6, 1912.
As of 8/1/2021, New Mexico requires gross receipts tax to be paid on all services. Most businesses operating in or selling in New Mexico are required to purchase a resale certificate annually. Even online based businesses shipping products to New Mexico residents must collect sales tax.
As of October 2019, New Mexico is not an SST member state. New Mexico is the latest state to adopt economic nexus and impose a sales tax collection requirement on remote businesses that have a certain amount of economic activity in the state.
New Mexico’s largest city is Albuquerque, and its state capital is Santa Fe, founded in 1610. New Mexico is a major producer of greenhouse gases. The fossil fuels sector accounted for over half the state’s overall emissions. Microsoft was also founded in New Mexico, in Albuquerque. New Mexico is part of the Rio Grande Technology Corridor. Intel’s Fab 11X, HP’s IT Center, and other pillars of the tech industry are located in the state.
New Mexico borders Colorado, Oklahoma, Texas, Chihuahua, Sonora, and Arizona. New Mexico is the only state with two official languages: English and Spanish. The highest point is Wheeler Peak; the lowest point is Red Bluff Reservoir.
New Mexico is not a Streamlined Sales Tax member state as of October 2019. Streamlined Sales Tax (SST) offsets technology costs for managing sales tax through certified service providers. SST member states simplify laws to reduce compliance costs. Participating states allow sellers to register so the state covers sales tax solution costs. Qualifying involves meeting thresholds over 12 months before registering. After registering, sellers must collect and remit taxes in that state. Benefits include central registration, consumer privacy protection, and simplified exemptions administration. Currently 25 states participate in SST.
New Mexico residents pay personal income tax. Nonresidents who work there or earn property income also pay it. Regular military salaries of residents serving in the U.S. military are subject to income tax. Since 2007, active duty military salaries have been exempt. Motor vehicle purchases have a 4% excise tax instead of sales tax. The gas tax is $0.189 per gallon. New Mexico has no estate or inheritance tax.
In 2010 New Mexico enacted a 2.9% tax on pensions and Social Security income for residents aged 62 and older. This affects public and private pensions. Some argue the tax unfairly targets seniors who rely on this income. Others say it’s necessary revenue, noting New Mexico doesn’t tax pensions and Social Security income.
Businesses operating in or selling to New Mexico must purchase an annual resale certificate. Online sellers shipping to residents must collect sales tax too. The certificate allows buying items without sales tax for resale. If all receipts are exempt, registration with New Mexico for gross receipts tax purposes isn’t required. Common exemptions are receipts of nonprofits, governmental entities, employee wages, and insurance companies.