![]() While an RST is a transaction tax imposed on the sale of tangible personal property and certain enumerated services, the GRT is imposed on the privilege of doing business in New Mexico. New Mexico's GRT is a unique state tax that resembles the retail sales tax (RST) imposed by most other states, but it differs from the RST in several ways. Basic structure of New Mexico's GRT and compensating tax This discussion summarizes both sets of changes to New Mexico's GRT and compensating tax regime, including economic nexus for remote sellers and marketplace facilitators, a comprehensive system of local compensating taxes, changes in the state's sourcing rules, and expansion of the tax base to include services performed out of state and certain digital goods. Any sellers that transact business with New Mexico consumers should take note of these changes and understand the impact to their New Mexico tax obligations. ![]() Potentially affecting more businesses than the nexus provisions, this second set of changes implements a regime of substantially uniform GRT and compensating taxes for both in- state and out- of- state businesses. 6 also contained a second set of significant GRT changes that will go into effect on July 1, 2021. 6, New Mexico's own economic nexus threshold for the GRT took effect on July 1, 2019. This paved the way for states to enact economic nexus laws requiring out- of- state businesses to collect sales and use tax from in- state customers even if the businesses have no physical presence in the state. 2080 (2018), in which the Court overturned its decades- old physical- presence nexus rule. Supreme Court decision in South Dakota v. The changes to the GRT came primarily in response to the U.S. Michelle Lujan Grisham signed House Bill (H.B.) 6, enacting major changes in the state's corporate income tax and gross receipts tax (GRT) regimes. The New Mexico Gross Receipts Tax is administered by the New Mexico Tax Compliance Bureau.On April 4, 2019, New Mexico Gov. The SSUTA is an agreement adopted by about half of states that ensures that their sales tax laws are simplified to lower the costs associated with compliance.Ĭontact the New Mexico Tax Compliance Bureau New Mexico is not a member of the Streamlined Sales and Use Tax Agreement. ![]() Is New Mexico a Streamlined Sales Tax State? ![]() The origin-based method of determining sales tax is less complicated for vendors than destination-based sales tax, because all in-state buyers are charged the same sales tax rate regardless of their location. Sales tax rates are determined by the location of the vendor, not by the location of the buyer. New Mexico is a origin-based sales tax state, which means Is the New Mexico Sales Tax Destination-Based or Origin-Based? Unlike a usual sales tax system, this means that the seller is taxed instead of the purchaser. While the state of New Mexico does not officially have a sales tax system, the state applies a gross receipts tax instead. ![]()
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