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In a nutshell, GRT is a substitute for the traditional sales tax that shoppers in other states pay when they make a purchase. In New Mexico, the seller pays the tax on the sales price of a product or service even if the seller doesnt collect it from the buyer and even if the buyer lives out of state.
What is the gross receipts tax in New Mexico sales tax?
Collecting Sales Tax The Gross Receipts tax rate now is calculated based on where the goods or products of services are delivered. The New Mexico gross receipts tax rate is 5.125%.
Who must pay New Mexico gross receipts tax?
The tax is imposed on the gross receipts of persons who: sell property in New Mexico; property includes real property, tangible personal property, including electricity and manufactured homes, licenses (other than the licenses of copyrights, trademarks or patents) and franchises.
What is New Mexico income tax nexus?
Determining Corporate Income Tax Nexus Any corporation with income from the transaction of business in, into or from New Mexico or from property or employment in the state has nexus. This means that the business has enough presence for New Mexico to impose the corporate income tax.
What is the New Mexico working family tax credit?
Intended to amplify the effect of the EITC, the WFTC is designed to support New Mexico families who are working hard but still struggling to afford basic necessities. As a refundable credit, it not only reduces tax liability, but can result in a cash refund even after tax liability has been reduced to zero.
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The business pays the total Gross Receipts Tax to the state, which then distributes the counties and municipalities portions to them. Changes to the tax rates may occur twice a year in January or July.
What is the severance tax on oil in New Mexico?
Base Rate: The Severance Tax is 3.75 percent of net production value, defined as gross production value less royalties paid to federal, state, or tribal governments, and transportation costs.
Who is exempt from gross receipts tax in New Mexico?
The state imposes a governmental gross receipts tax of 5.00% 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.
Related links
Annual Statement of Withholding of Oil and Gas Proceeds
Sep 2, 2014 If you have 50 or fewer remittees, or if you have been granted an exemption to electronically file RPD-41285, you may submit paper forms to New
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