New Mexico Taxation and Revenue Department

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The New Mexico Taxation and Revenue Department administers tax revenue for the state, collecting and distributing it in accordance with tax laws. As of this writing, the department handles approximately $6.8 billion in annual tax revenue and fees. The Secretary of Taxation and Revenue heads the agency and is a member of the governor’s cabinet.

The agency is comprised of the Office of the Secretary and several divisions, each of which is itself made up of multiple bureaus:

  • Administrative Services Division (ASD);
  • Information Technology Division (ITD);
  • Property Tax Division (PTD);
  • Tax Fraud Investigation Division (TFID);
  • Revenue Processing Division (RPD);
  • Audit and Compliance Division (ACD); and
  • Motor Vehicle Division (MVD).

ASD exists to guarantee that the Taxation and Revenue Department meets all legal and internal administrative requirements. It performs financial audits, ensures compliance with pertinent laws and rules, and monitors the budget. In addition, it oversees many tasks centered on employees, from training programs to professional service contracts and payroll. Within the ASD, the Financial Distribution Bureau administers all revenue generated from taxes and fees, ensuring that it ends up in the proper hands. The Financial Services Bureau makes sure that the department is in compliance with all applicable federal, state, and local rules and regulations.

Taxes collected by the New Mexico Taxation and Revenue Department include, but are not limited to:

  • cigarette tax;
  • compensating tax;
  • conservation tax;
  • estate tax;
  • gaming tax;
  • gross receipts tax (in lieu of a sales tax);
  • liquor excise tax (state and local level); and
  • wage withholding tax.

The Tax Fraud Investigation Division encourages voluntary compliance with New Mexico tax law. It achieves this through audits (both internal and external) and, when necessary, criminal investigation. It is tasked with identifying and preventing tax fraud on all levels.

New Mexico Sales and Use Tax Exemption Certificates

In place of a sales tax, New Mexico imposes a gross receipts tax on sellers and lessors. They, in turn, may pass on the gross receipts tax to the customer. Sellers with a Nontaxable Transaction Certificate (NTTC), which is available from the Taxation and Revenue Department, may deduct receipts from qualified transactions. Customers who provide an NTTC to a seller may also be exempted from paying the gross receipts tax.

It should be noted that the Nontaxable Transaction Certificate is the only document that legally exempts sellers, lessors and buyers from the gross receipts tax. Resale certificates issued by other states are not valid. However, the Multistate Tax Commission’s Multijurisdictional Sales and Use Tax certificate and the Border States Uniform Sale for Resale certificate may be accepted in certain situations.

When services are purchased for resale, a Declaration of Services Purchased for Resale may be completed by the purchaser and submitted to the seller.

The New Mexico Taxation and Revenue Department provides a Tax Professional section, which provides specific information to Sellers and Resellers. It also links to a For Your Information packet from the New Mexico Taxation and Revenue Department covering Nontaxable Transaction Certificates (NTTCs).

Create an exemption certificate for New Mexico or any other state with Avalara CertExpress.

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