What is the gross receipts tax for new mexico

what is the gross receipts tax for new mexico

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The gross receipts tax rate varies throughout the state from % to % depending on the location of the business. It varies because the total rate combines rates imposed by the state, counties, and, if applicable, municipalities where the businesses are located. Oct 23, Governmental Gross Receipts Tax. The state imposes a governmental gross receipts tax of % on the receipts of New Mexico state and local governments. The exceptions are the gross receipts of public school districts and entities licensed by the Department of Health that are principally engaged in providing health care.

Gross receipts means the total amount of money or other consideration received from the above activities. Although the gross receipts tax is imposed on businesses, it is common for a business to pass the gross receipts tax on to the purchaser either by separately stating it on the invoice or by combining the tax with the selling price. The gross receipts tax rate varies throughout the state from 5. It varies because the total rate combines rates imposed by the state, counties, and, if applicable, municipalities where the businesses are located.

Changes to the tax rates may occur twice a year how to make a really good paper airplane glider January or July.

Always check the current Gross Receipts Tax Rate Schedule to see if the rate for your business location s has changed. Note: Your browser may ask you to allow pop-ups from this website. Allow the pop-ups and double-click the form again. For the best user experience on this website, you should update your browser Internet ExplorerChromeFirefox or Safari.

Businesses Gross Receipts Overview. Gross Receipts Overview. Gross receipts are the total amount of money or value of other consideration received from: Selling property in New Mexico; Leasing or licensing property employed in New Mexico; Granting a right to use a franchise employed in New Mexico; Performing services in New Mexico, and Selling research and development services performed outside New Mexico, the product of which is initially used in New Mexico.

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Gross receipts are the total amount of money or value of other consideration received from:

Monthly RP Reports: Gross Receipts by Geographic Area and 6-digit NAICS Code. Collection and distribution data of the gross receipts tax are also provided in the Monthly Local Government Distribution or RP reports. Monthly Local Government Distribution Reports (RP) Gross Receipts by Location: Calculation of 1/12% Increment for the. New Mexico Taxation and Revenue Department FYI REV. 07/ Page 5 1. Tax billed to the buyer (i.e., gross receipts tax, governmental gross receipts tax, leased vehicle gross receipts tax, interstate telecommunications gross receipts tax and local option taxes). New Mexico charges a gross receipts tax on persons engaged in business in the state for the privilege of doing business in the state. Tax rates vary across the state from % to % and the rate is determined as a combination of the rates imposed by the state, the counties, and the municipalities.

Qualifying New Mexico food and beverage establishments may claim a temporary gross receipts tax GRT deduction on sales of food and beverages from March 1, , through July 1, New Mexico Senate Bill 1 SB1 allows qualified entities the option to charge GRT and keep the funds as a stimulus incentive, or simply not charge customers the tax for the qualified period.

Establishments can receive the temporary GRT deduction on sales of prepared food or nonpackaged beveragesalcoholic or nonalcoholicthat are:. The following establishments and businesses are eligible for the temporary deduction as it relates to the sale of food and nonpackaged beverages. A fast food restaurant is defined as an establishment that meets both of the following definitions:.

In addition, an establishment is considered to be a fast food establishment for this deduction when it tends to have any of the following characteristics:. Businesses opting for this deduction during the allowable period may choose one of the following options for monthly or quarterly reporting purposes. Paper and electronic filers need to follow specific instructions based on filing methods to report these deductions in the GRT returns.

The deduction is only available from March 1, , through July 1, , so food and beverage businesses will need to act quickly to benefit from the opportunity.

To learn more about the temporary GRT and other savings opportunities for food and beverage businesses, reach out to your Moss Adams professional. Mo Huda has provided sales and use tax consulting services since He can be reached at or mo. Institutional Investments Insurance. April 20, Establishments can receive the temporary GRT deduction on sales of prepared food or nonpackaged beveragesalcoholic or nonalcoholicthat are: Served at the establishment for immediate consumption Picked up by customers Delivered to customers for immediate consumption.

Qualified Establishments The following establishments and businesses are eligible for the temporary deduction as it relates to the sale of food and nonpackaged beverages. A fast food restaurant is defined as an establishment that meets both of the following definitions: Sells food intended to be ordered, prepared, and served quickly with minimal or no table service Prepared in quantity by standardized methods for consumption on and off premises.

In addition, an establishment is considered to be a fast food establishment for this deduction when it tends to have any of the following characteristics: A menu consisting primarily of precooked items or items prepared in advance and heated quickly Placement of orders at a fast serve drive-through or walk-up window Service of food solely in disposable wrapping or containers A menu that exclusively sells hamburgers, sandwiches, salads, and other fast foods How to Report the Deductions in GRT Returns Businesses opting for this deduction during the allowable period may choose one of the following options for monthly or quarterly reporting purposes.

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