Understanding New Mexico’s GRT, who has to pay, how much to pay and when to pay are vital to doing business in the state and remaining compliant with state tax laws. Here is a quick and easy run-down to help you file your GRT.
How to File New Mexico GRT
The gross receipts tax is a tax imposed on persons engaged in business in New Mexico for the privilege of doing business in New Mexico. If you do business in New Mexico, you’ll more than likely need to file. Here’s how.
1. Do a Nexus Check
Businesses are required to collect and remit GRT if they have either physical or economic nexus with the state.
Physical Nexus
Physical nexus includes businesses that have physical locations in New Mexico as well as businesses that:
- Store property in New Mexico
- Employ a person in New Mexico
- Contract with a salesperson or other agent in New Mexico
- Lease equipment used in New Mexico
- Perform services in New Mexico
- License the use of intangible property in New Mexico
- Transport property in New Mexico using the taxpayer’s vehicles
Economic Nexus
A person who lacks a physical presence in New Mexico can still have economic nexus. This includes marketplace providers and other vendors who had $100,000 or more in taxable gross receipts in the previous calendar year from sales, both tangible goods and services, in the state.
Click here for more information on determining nexus.
2. Calculate What Tax You Owe
Add up your gross receipts for the filing period and apply the appropriate GRT rate for your location. To determine the correct GRT rate, you’ll add the state rate (currently 5.125%) to any local rate where your business operates. The combined rate is then applied to the total gross receipts from your business sales and services.
Click here to find current GRT rates.
3. File Your GRT Return
Gross Receipts Tax returns in New Mexico are generally due on the 25th of the month following the reporting period. Most businesses file monthly, however, businesses with lower gross receipts may be eligible to file quarterly or even annually.
The easiest and preferred method of filing your GRT return is to do so online using the New Mexico Taxpayer Access Point (TAP) system. Gross Receipts Tax forms and schedules can also be filled out by hand and mailed. You can get the paper forms at any district office, request them by mail or download them from the department website.
4. Make Your payment
If you file online, you can easily submit your payment electronically through the TAP system. This is the fastest, safest and preferred way to remit your payment, but you can also print a paper voucher and mail a check to make your payment.
Leave Your GRT to Jason Arsenault, CPA
If you have any questions about filing your Gross Receipts Tax or want help at any time, reach out to Arsenault CPA Firm. We are here to help with all your tax and business needs and are dedicated to helping businesses of all sizes navigate difficult sales tax issues. Let us give you peace of mind and confidence when it comes to New Mexico Gross Receipts Tax. As a certified public accountant serving individuals and businesses in the Albuquerque, Santa Fe and Farmington areas from Gallup, NM, you can trust our numbers and our tactics. Contact us today for a free consultation.