So, for example, a lawyer based in Taos would be taxed at the rate in effect in Taos for services rendered to a client in neighboring Colorado.Ī true gross receipts tax is similar to a general sales tax in that both are based on the total amount of sales.
#De gross receipts tax license#
Some exceptions apply to the sourcing of professional services, which are services that require the provider to have an advanced degree from an accredited post-secondary educational institution or a license from the state to perform. On July 1, 2023, the GRT rate will drop again, to 4.875%.įor the most part, New Mexico GRT rates are based on the location where the products were delivered or the services supplied. The state GRT was lowered July 1, 2022, for the first time in 40 years. Changes to the state GRT are permitted no more than once a year and usually take effect July 1. Local GRTs in New Mexico are subject to change twice annually, on January 1 and July 1. Municipal and county gross receipts taxes are on top of that and can bring the total GRT rate to 9.3125% (as of this writing).
Unlike the gross receipts taxes that are in lieu of income taxes, which tend to be low, the base or state New Mexico GRT is 5%. New Mexico GRT also applies to the right to use a franchise in the state.
Gross receipts tax in New Mexico applies to receipts from sales of property, services (including research and development services), and tangible personal property.
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