WESST Las Cruces TrainingFirst Friday Small Business Workshop – Understanding the Gross Receipts Tax
According to the New Mexico Taxation and Revenue Department, gross receipts (GRT) are the total amount of money or value of other consideration received from:
- Selling property in New Mexico
- Leasing or licensing property employed in New Mexico
- Granting a right to use a franchise employed in New Mexico
- Performing services in New Mexico, and
- Selling research and development services performed outside New Mexico, the product of which is initially used in New Mexico
Although the gross receipts tax is imposed on businesses, it is common for a business to pass the gross receipts tax on to the purchaser either by separately stating it on the invoice or by combining the tax with the selling price.
The gross receipts tax rate varies throughout the state from 5.125% to 8.6875%, depending on the location of the business. It varies because the total rate combines rates imposed by the state, counties, and if applicable, municipalities where the businesses are located. If this has you confused, or you don’t know what to do on your upcoming taxes, you DO NOT want to miss our March First Friday!
Join Mary Ann Quesada from the Small Business Development Center as she discusses the differences in the GRT, how you report them, and more.