New Mexico Sales Tax Information
- 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.
Filing statuses for gross receipts tax and their due dates are:
- Monthly - the 25th of the following month if combined taxes average more than $200 per month, or if you wish to file monthly regardless of the amount due
- Quarterly – the 25th of the month following the end of the quarter if combined taxes for the quarter are less than $600 or an average of less than $200 per month in the quarter. Quarters are January-March; April-June; July-September; October–December
- Semiannually - the 25th of the month following the end of the 6-month period if combined taxes are less than $1,200 for the semiannual period or an average less than $200 per month for the 6-month period. Semiannual periods are January-June; July–December;
- Seasonal - businesses doing business only during a specific time of year, e.g., firewood vendors or Christmas tree sales. You must indicate month(s) for which you will be filing
- Temporary – usually set up for one-time filing. A start date and an end date are required. There is a maximum of six months.
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, “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.