How to Register for the Gross Receipts Tax in New Mexico
Most businesses starting in New Mexico selling a product or offering certain services will need to register for the gross receipts tax. The gross receipts tax is similar to sales tax in other states, but instead of the tax being charged to the consumer, it is a tax on businesses for the privilege of doing business in New Mexico. While the tax is imposed on the business, it is common to pass the tax to the purchaser.
Gross receipts tax is collected when:
- Selling property in New Mexico. Property includes things like furniture, computers, vehicles, digital goods, etc.
- Performing services in the state. A few services include construction, landscaping, car detailing, and more.
- Leasing or licensing property in the state of New Mexico.
- Granting a right to use a franchise in the state.
- Selling research and development services performed outside of the state if the service is initially used in New Mexico. This is commonly referred to as a seller’s permit, sales tax license, sales tax number, or sales tax registration.
The sales tax permit is obtained through the New Mexico Taxation and Revenue Department as a part of applying for the Combined Reporting System (CRS) Identification Number.
Check out the rest of this guide to determine who needs to register for the gross receipts tax, what products and services are taxable, how to register, and reporting requirements.
Also See: Guide to Starting a Business in New Mexico
Who needs to register for Gross Receipts Tax in New Mexico?
Anyone engaging in business in New Mexico must register with the New Mexico Taxation and Revenue Department. Engaging in business may include:
- A business having economic nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
- Selling products and taxable services in New Mexico (includes occasionally selling items at craft shows, fairs, seminars, conventions, etc.)
- Employees (including sales representatives or agents) are working in New Mexico
- An online business located in New Mexico is selling taxable products to New Mexico residents
- A remote seller selling more than $100,000 in taxable sales to New Mexico residents.
What products and services are taxable in New Mexico?
Almost all products and services are taxable in New Mexico, however, there are a few exceptions, such as some agricultural and manufacturing products, medical equipment, and prescriptions. See the list of gross receipts tax exemptions.
How to register for a Gross Receipts Tax Permit in New Mexico
A gross receipts tax permit can be obtained by registering for a CRS Identification Number online or submitting the paper form ACD-31015.
After registering, the business will be issued a Combined Reporting System (CRS) Number, sometimes known as a New Mexico Tax Identification Number.
Information needed to register includes the:
- Business name
- Doing Business As name (if applicable)
- Employer Identification Number (EIN) from the IRS, or owner’s Social Security Number if a sole proprietorship with no employees
- Business address, phone, and email
- Type of legal structure: Sole Proprietorship, Partnership, Corporation, Limited Liability Company (LLC)
- Date business activity started or anticipated to start
- Business registration number from the New Mexico Secretary of State (corporations and LLCs only)
- Filing status (monthly, quarterly, semi-annual, temporary and seasonal)
- Names, address, SSN of owners/officers/members
- Method of accounting (cash or accrual)
- Description of what products or services are being sold
Sales tax reporting
How is gross receipts tax collected?
When a business sells a taxable product or service, the business charges the appropriate gross receipts tax rate to the customer. The business collects this tax and then sends it to the New Mexico Taxation and Revenue Department.
How much gross receipts tax is charged?
The gross receipts tax rate that is charged varies depending on the address of the business if the purchase is made in the store. When shipping in-state, the sales tax is based on the address of the purchaser.
In addition to the statewide tax, there are additional local sales taxes that may be added by counties and municipalities. To find gross receipts tax rates, see the New Mexico Taxation and Revenue Department’s sales tax rate map.
When are New Mexico gross receipts tax returns due?
The Taxation and Revenue Department will determine a filing frequency based on the expected sales volume, which will be monthly, quarterly, or semi-annually. Generally, a business collecting over $1,000 in gross receipts tax each month will file monthly.
There is no cost for a gross receipts tax permit in New Mexico.
Filings are due the 25th day of the month following the reporting period, unless the 25th falls on a weekend or federal holiday, which would move to the next business day.
Even if the business had no sales during the reporting period, a filing is still required indicating no sales.
In addition to registering for a sales tax permit, there may be other business licenses needed before starting a business in New Mexico. Learn what business licenses are needed in New Mexico.
How much does a Gross Receipts Tax Permit cost in New Mexico?
There is no cost for a gross receipts tax permit in New Mexico.
How long does it take to get a New Mexico gross receipts tax permit?
New Mexico tax permit applications made online are processed immediately, while paper forms take 1-2 weeks.
Do you have to renew a New Mexico gross receipts tax permit?
The gross receipts tax permit is a one-time registration, and no renewals are needed. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the New Mexico Taxation and Revenue Department.
How do I get a wholesale license in New Mexico?
A business can purchase items to resell without paying the gross receipts tax, by obtaining a New Mexico Non-Taxable Transaction Certificate. The tax liability is passed from the wholesaler or distributor to the retailer, who will then charge gross receipts tax to the end-user of the item.
Wholesalers and distributors will require a CRS ID Number and a completed Non-Taxable Transaction Certificate (also referred to as a resale certificate or sales tax exemption certificate) to document the items being purchased are for resale.
Is a business license the same thing as a sales tax license?
In addition to registering for a sales tax permit, there may be other business licenses needed before starting a business in New Mexico.
Learn what business licenses are needed in New Mexico.
If you have questions about the sales tax permit, contact the New Mexico Taxation and Revenue Department at their main number of 866-285-2996 or by visiting a local center.
5301 Central NE
Albuquerque, NM 87198-8485
1200 S. St. Francis Dr.
Santa Fe, NM 87502-5374
3501 E. Main St., Suite N
Farmington, NM 87499-0479
2540 S. El Paseo Building #2
Las Cruces, NM 88001-0607
400 N. Pennsylvania Ave., Suite 200
Roswell, NM 88202-1557