What are gross receipts?
Gross receipts are, in effect, sales on which gross receipts tax (GRT) is imposed. So gross receipts 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
Selling research and development services performed outside New Mexico, the product of which is initially used in New Mexico
Gross receipts also includes other unexpected items such as expense reimbursements and freight and delivery charges. In other words, it's usually the bottom line total on a bill.
The N.M. GRT is the responsibility of the seller. This is different from many other states' sales taxes where the tax is the responsibility of the buyer and the seller is a conduit that collects sales tax and passes it on 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 currently from 4.875% to 8.9375%. 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 reported in the GRT Filer's Kit.