Sales, Use and International Tax Activity Update - April 2010

New Mexico Engrossed in Gross Receipt and Compensating Tax Rate Changes

New Mexico Gov. Bill Richardson has signed a bill that increases the gross receipts and compensating tax rates to 5.125% from 5%.

The bill further clarifies nexus for certain compensating tax transactions to ensure that purchases of tangible personal property from sellers outside New Mexico without physical presence in the state are subject to the state’s compensating tax. The new rate is effective July 1, 2010.

The governor exercised a line-item veto for the provisions that would repeal the gross receipts tax deduction for the sale of food at a retail food store and provide a credit against the state’s share of the gross receipts tax for the sale of food at a retail food store.

The final Senate Bill can be viewed on the New Mexico Taxation and Revenue Bill Web site.

---

Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.

Email Address