What are gross receipts?

Gross receipts, on which the gross receipts tax is based, are the total amount of money or value of other consideration received from. In other words: sales

  • 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.

The N.M. gross receipts tax is the responsibility of the seller. This different from many other states' sales taxes where the tax is the responsibility of the buyer. In that case the seller acts as a conduit to pass the tax from the buyer to the state. This difference is important because the seller must pay gross receipts tax even if they choose not to add the tax to their sale price.

The gross receipts tax rate varies throughout the state from 5.125% to 8.6875%. This variation is because counties and municipalities where sellers are located are able to set their own additional rates. Changes to the tax rates may occur twice a year in January or July. New tax rate schedules are posted online and in the CRS-1 Filer's Kit.