The New Mexico (NM) state gross receipts tax rate is currently 5.125%. Depending on local municipalities, the total tax rate can be as high as 8.625%.
New Mexico has a gross receipts tax that is imposed on persons engaged in business in New Mexico. Generally, a business will pass that tax on to the consumer so that it resembles a sales tax. For more details, read the New Mexico Gross Receipts Tax Overview.
Other, local-level tax rates in the state of New Mexico are quite complex compared against local-level tax rates in other states. New Mexico sales tax may also be levied at the city/county/school/transportation and SPD (special purpose district) levels. The combined rates vary from the state rate of 5.125% up to 8.8675% in some areas.
The state’s portion of the gross receipts tax is determined by state law. Changes only occur once a year, usually in July. County commissioners govern a county’s portion of the gross receipts tax and municipal councils govern local municipality portions. The county and municipal changes are usually effective in January or July of each year. New rate schedules are issued twice a year–the department does not send out separate notices when changes occur so the business needs to track and maintain rate changes through research.
New Mexico gross receipts tax is collected on businesses engaged in any of the following: selling property in New Mexico, leasing or licensing property employed in New Mexico, granting a right to use a franchise employed in NM, performing services, or selling research and development services performed outside NM when the product is first used in NM. Anyone who engages in business in New Mexico is required to register with the Taxation and Revenue Department (TRD).
How to Register
Businesses should submit an application for a business tax identification number through (Form ACD-31015) or apply online through New Mexico E-filing Services for a Combined Reporting System (CRS) identification number, which is more expedient. There is no fee to obtain a CRS identification number.
On June 16, 2014, CRS online filing moved to a new Taxpayer Access Point (TAP) system.
How to File and Pay
Businesses required to remit gross receipts tax must remit a CRS-1 Form to the New Mexico Taxation and Revenue Department. Every June and December, TRD mails a CRS-1 Filer’s Kit to all registered taxpayers who do not file online. The kit contains a six-month supply of CRS-1 Forms.
Electronic filing is preferred. Reports should be filed monthly unless businesses qualify for less frequent filing. To file quarterly or semi-annually, the combined total tax due must average $200 a month or less. Businesses may not switch to filing quarterly or semi-annually until receiving notification from the department that it is okay to do so.
New Mexico gross receipts tax is due the 25th of the month following the end of the reporting period. Additional information.