The Gross Receipts Tax rate varies throughout the state from 5.125% to 9.4375%.
2. Double-click a form to download it.
| Title | Open File |
|---|---|
| Nontaxable Transaction Certificates | |
| GRT-PV Gross Receipts Tax Payment Voucher | Open File |
3
What is subject to gross receipts tax in New Mexico?
GRT applies to the gross receipts of businesses or people who sell property, perform services, lease or license a property or franchise in New Mexico, and sell certain services delivered outside New Mexico when the resulting product is initially used here. Some transactions are tax exempt, and some are deductible.
Who must pay New Mexico gross receipts tax?
If you have no business location or resident salesperson but are liable for gross receipts tax (for instance, because you lease property used in New Mexico or perform a non-construction service in New Mexico), you are liable for tax at the rate for out-of-state businesses, the state gross receipts tax rate of 5.125%.
Who is subject to gross receipts tax?
A gross receipts tax is a tax applied to a company’s gross sales, without deductions for a firm’s business expenses, like costs of goods sold and compensation.
What is the difference between income tax and gross receipts tax?
Introduction. Gross receipts taxes are applied to receipts from a firm’s total sales. Unlike a corporate income tax, these taxes apply to the firm’s sales without deductions for a firm’s costs. They are not adjusted for a business’ profit levels or expenses and apply to all transactions a business makes.
How do you calculate gross receipts?
Add up your total sales to get gross receipts. If you’ve kept good records, it should be simple. Then subtract the cost of goods sold, as well as sales returns and allowances, to get your total income.
What is included in gross receipts?
Gross receipts include all revenue in whatever form received or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees or commissions, reduced by returns and allowances.
Is New Mexico gross receipts tax the same as sales tax?
New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico. In almost every case, the person engaged in business passes the tax to the consumer either separately stated or as part of the selling price.
Can you deduct gross receipts tax?
The gross receipts tax doesn’t deduct expenses. Other states have franchise taxes, which are similar to income taxes.
Are gross receipts the same as gross income?
Gross receipts, defined Generally, receipts are considered “ total income ” (or “gross income” in the case of a sole proprietorship, independent contractor or self-employed individual) plus the “cost of goods sold,” and exclude net capital gains or losses as these terms are defined and reported on IRS tax return forms.
Where do I find gross receipts on my tax return?
If you operate your business as a Sole Proprietorship or a single-member Limited Liability Company (LLC), gross receipts go on Schedule C of your IRS Form 1040.
Which states have a gross receipts tax?
The states that levy gross receipts tax include:
- Delaware.
- Michigan.
- Nevada.
- New Mexico.
- Ohio.
- Oregon.
- Tennessee.
- Texas.
How does a gross receipts tax work?
Gross receipts taxes are applied to a company’s gross sales, without deductions for a firm’s business expenses, like compensation and cost of goods sold. These taxes land on businesses and capture business-to-business transactions in addition to final consumer purchases, leading to tax pyramiding.