Unlike most states, New Mexico does not impose a sales tax based on the point of delivery of the goods sold. Instead, New Mexico imposes a tax on the gross receipts of the seller or lessor. The business location of the seller or lessor determines the rate of the Gross Receipts Tax (GRT). This FYI discusses how to determine your business reporting location and the importance of correct reporting and using the correct tax rate.
How The Gross Receipts Tax System Works
Reporting Requirements
Determining Your Business Reporting Location
Based On The Location of Your Business
Based On Your Type of Business .
Taxpayer Information
For Further Assistance
New Mexico's Gross Receipts Tax system is a joint effort of the state and its individual counties and municipalities. The state sets a flat gross receipts tax rate (currently 5%). To this rate of 5%, counties and municipalities may add various Local Option Gross Receipts Taxes. The total rate in any area may include levies by all three levels of government; the state, the county, and the municipality.
Local Option Gross Receipts Taxes and related taxes are collected by the Department and distributed to municipalities and counties to fund essential services, such as police and fire services, hospitals, health care facilities, and waste management services. This is why businesses are required to report their business location when reporting and paying the Gross Receipts Tax. For most counties and municipalities, Gross Receipts Taxes are a major source of revenue. It is vital to fiscal planning that counties and municipalities have a dependable source of revenue.
The Gross Receipts Tax and Local Option Gross Receipts Taxes are reported and paid on CRS-1 Forms, which are included in the CRS-1 Filer's Kit. On the CRS-1 Form, you will need to report your business location(s) in Column A, your business Location Code(s) in Column B, and the Gross Receipts Tax rate in effect at your business location(s) in Column F. Location codes and Gross Receipts Tax rates are listed in the Gross Receipts Tax Rate Schedule, which is included in your CRS-1 Filer's Kit.
The CRS-1 Filer's Kit is updated and distributed twice yearly to registered CRS taxpayers. The combined Gross Receipts Tax rate can change on January 1 and July 1 of each year, so it is important to check the Gross Receipts Tax Schedule in your Filer's Kit for current GRT rates.
The following will provide a guideline for determining your business reporting location based on your business location and the type of business you are in. You may wish to use this guideline along with the Gross Receipts Tax Schedule.
BASED ON THE LOCATION OF YOUR BUSINESS
IF YOU HAVE MULTIPLE SITES IN NEW MEXICO ...
your business reporting location is at each site where you have a business. Use the corresponding GRT rates and Location Codes. For sites that are located outside a municipality but not on municipally owned land, use the "Remainder of County" rate and corresponding Location Code. If you are not sure whether you are within municipal limits, contact either the local municipal or county zoning office.
IF YOU ARE LOCATED ON MUNICIPALLY OWNED LAND OUTSIDE MUNICIPAL BOUNDARIES ...
your business location will be that of the municipally owned land (identified on the Gross Receipts Tax Rate Schedule). The GRT rate will be the "Remainder of County" rate listed for that county. Please refer to the Gross Receipts Tax Rate Schedule for the correct codes and rates.
IF YOU ARE LOCATED OUT OF STATE, BUT YOU HAVE ONE OR MORE NEW MEXICO LOCATIONS ...
your business reporting locations would be at each New Mexico site where you have a business -- that is, a store, office, warehouse, or showroom; or the New Mexico location of your resident sales personnel. Use the corresponding GRT rates and location codes. If you also do business in New Mexico from your out-of-state location, show those gross receipts using the special location code 88-888 (or 77-777 for research and development services) and the GRT rate of 5%.
IF YOU ARE LOCATED OUT OF STATE, WITH NO NEW MEXICO LOCATIONS ...
your business location will be out of state. Use the special location code 88-888. If your business is research and development services and you have nexus (presence) in New Mexico use the special location code number 77-777. Both of these codes have a GRT rate of 5%.
BASED ON YOUR TYPE OF BUSINESS IF YOU ARE AN ITINERANT PEDDLER ...
your business reporting location is your residence. Use the corresponding GRT rate and location code.
An itinerant peddler does no advertising or soliciting, has no one employed to sell, and is not employed as a salesperson.
If you pay a fee to occupy a particular location or space for a determined period of time, or if you advertise in advance that you will be at a particular location for a specified period of time, you are not an itinerant peddler. Instead, you have a temporary business location. Use that location as your business reporting location and use the corresponding GRT rate and location code.
IF YOU ARE IN THE BUSINESS OF SELLING UTILITIES OR TELEPHONE SERVICES ...
your business reporting location is each customer's meter or telephone. Use the corresponding GRT rates and location codes. If you are subject to the Interstate Telecommunications Gross Receipts Tax, see publication FYI-403: INTERSTATE TELECOMMUNICATIONS.
IF YOU PROVIDE GENERAL SERVICES ...
your business location will be your business reporting location regardless of where you perform the service. Use the corresponding GRT rate and location code.
IF YOU PROVIDE CONSTRUCTION SERVICES ...
your business reporting location is the location of each construction site. Use the corresponding GRT rates and location codes. All phases of construction are considered a service, including materials that become component parts of the completed project. If you are not sure of the construction site's location -- especially with state or federal installations -- contact the project owner or the local municipal or county zoning office.
IF YOU ARE IN THE BUSINESS OF LEASING ...
your business location will be the business reporting location regardless of where the items are actually used. Use the corresponding GRT rate and location code.
IF YOU ARE SELLING REAL ESTATE ...
your business reporting location is the location of the property sold, not the location of the real estate company's office. Use the corresponding GRT rate and location code.
IF YOU ARE PROVIDING TRANSPORTATION SERVICES ...
your business reporting location is that of your business location but special adjustments to the local option tax rates may apply. See publication FYI-290: INFORMATION FOR THE TRANSPORTATION INDUSTRY.
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General Information. FYIs and Bulletins present general information with a minimum of technical language. All FYIs and Bulletins are free and available through all local tax offices, the Tax Information and Policy Office and on the Internet. The Taxation and Revenue Department's address is:
Regulations. The Department promulgates regulations to interpret and exemplify the various tax acts administered by the Department. These regulations are compiled and are available for a $20 per volume fee, prepaid. Volumes are available in looseleaf book form. The order form is available at all local tax offices, and through the Tax Information and Policy Office. Specific regulations are also available at the State Records Center.
Rulings. Rulings are written statements signed by the Department Secretary and approved by the Attorney General that apply to one or a small number of taxpayers. A taxpayer may request a ruling to clarify its tax liability or responsibility under specific circumstances. The request for a ruling must be made in writing, should include not only the details about the taxpayers situation, but also identify who the taxpayer is and should be directed to the Secretary of the Taxation and Revenue Department. While the Department is not required to issue a ruling when requested to do so, the Department carefully considers every request. There is no charge for requesting a ruling.
Local tax offices can provide full service and information about the Department's taxes, programs, and forms as well as specific information about your filing situation. All telephone numbers are area code 505.
On request, this publication can be made available in various accessible forms. Please contact:
ADA (Americans with Disabilities Act) Coordinator
New Mexico Taxation and Revenue Department
P.O. Box 630
Santa Fe, NM 87504-0630
(505)827-0700
For TTY service (text telephone), call through the New Mexico Relay Network:
1-800-659-8331
1-800-659-1779 (voice)
(505)889-0420 (in the Albuquerque area)
This publication provides general information. It does not constitute a regulation, ruling, or decision issued by the Secretary of the New Mexico Taxation and Revenue Department. The Department is legally bound only by a regulation or a ruling [7-1-60, New Mexico Statutes Annotated, 1978]. In the event of a conflict between FYI and statute, regulation, case law, or policy, the information in FYIs is overridden by statutes, regulations, and case law. Taxpayers and preparers are responsible for being aware of New Mexico tax laws and rules. Consult the Department directly if you have questions or concerns about information provided in this FYI.
FYI-200 REV. 1/97
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