New Mexico Sales Tax Guide for Businesses
- Sales Tax Rate
- Local Taxes
- Taxation and Revenue Department
- Tax Line
New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico.
In almost every case, the person engaged in business passes the tax to the consumer either separately stated or as part of the selling price. Only in its effect on the buyer does the gross receipts tax resemble a sales tax.
Generally speaking, sales and leases of goods and other property, both tangible and intangible, are taxable. Unlike many other states, sales and performances of most services are taxable in New Mexico.
Tax rules on shipping and/or handling
If the cost of shipping is passed on to the customer then that cost is considered to be taxable.
|2||Las Cruces||101,643||Dona Ana||8.313%|
|4||Santa Fe||84,099||Santa Fe||8.313%|
|13||Sunland Park||15,940||Dona Ana||8.438%|
|17||Las Vegas||13,386||San Miguel||8.396%|
|20||Los Alamos||11,815||Los Alamos||7.313%|
The Top 20 Most Populous Cities in New Mexico and their Gross Receipts Tax Rates (June 2017)
When are New Mexico Sales Tax Returns Due?
When you file and pay New Mexico sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in New Mexico?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In New Mexico, you will be required to file and remit sales tax either monthly, quarterly, or semiannually.
How often you are required to file sales tax in New Mexico follows this general rule:
|Average Monthly Tax Liability||Filing Frequency|
|$200.00 and up||Monthly|
|$66.67 to $199.99||Quarterly|
|$0 to $66.66||Semiannually|
New Mexico sales tax returns are generally always due the 25th day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
2017 New Mexico Monthly Sales Tax Filing Due Dates
|Taxable Period||Due Date|
|*January||February 27, 2017*|
|*February||March 27, 2017*|
|March||April 25, 2017|
|April||May 25, 2017|
|*May||June 26, 2017*|
|June||July 25, 2017|
|July||August 25, 2017|
|August||September 25, 2017|
|September||October 25, 2017|
|*October||November 27, 2017*|
|*November||December 26, 2017*|
|December||January 25, 2018|
*indicates a due date pushed back due to a weekend or holiday
2017 New Mexico Quarterly Sales Tax Filing Due Dates
|Taxable Period||Due Date|
|Q1 (Jan-March)||April 25, 2017|
|Q2 (April-June)||July 25, 2017|
|Q3 (July-Sept)||October 25, 2017|
|Q4 (Oct-Dec)||January 25, 2018|
2017 New Mexico Semiannual Sales Tax Filing Due Dates
| Taxable Period | Due Date | |————————-|——————| | Semiannual 1 (Jan-June) | July 25, 2017 | | Semiannual 2 (July-Dec) | January 25, 2018 |
Click here for more info on New Mexico sales tax filing due dates.
Penalties & Interest
If you file your sales tax return after the due date, you need to add penalty and interest to the amount of tax you owe the state. If you are late filing and don’t owe the state anything, you still owe a $5 penalty. According to the state, the “Penalty is 2% per month or partial month the payment is late up to a maximum of 20% of tax due or a minimum of $5.00.” Interest is calculated at a rate of 3% on a daily basis.
How to File & Pay
Record Keeping Requirements
Here’s what the state says about record keeping, “New Mexico statute permits the Department to assess back 10 years, depending on the situation. The normal assessment period is three years back from the end of the year the tax was due. If you have underreported any one tax on the CRS-1 Form by more than 25%, the Department may assess back six years. If you have non-filed reports, the Department may assess back seven years. If there is evidence of tax fraud, the Department may assess back 10 years. It is in your best interest to maintain these files for 10 years in the event the Department requires information from you.”
Business Registration Requirements
Persons engaging in business in New Mexico must register with the New Mexico Taxation and Revenue Department. With few exceptions a business must hold a CRS identification number.
“Combined Reporting System,” (“CRS”) is the Department’s method for reporting the state’s major business taxes: gross receipts tax, all local option gross receipts taxes, compensating tax, and withholding tax. The CRS identification number is your state tax identification number.
New Mexico Sales Tax Holidays
Here’s a list of current New Mexico sales tax holidays:
August 4-6, 2017: “Back to School Sales Tax Holiday”
Click here for more information about this year’s sales tax holidays in the U.S., including what to do about sales tax holidays as an online seller.