(d) amounts received from transmitting messages or conversations by persons providing telephone or telegraph services (c) amounts paid by members of any cooperative association or similar organization for sales or leases of personal property or performance of services by such organization (b) the total commissions or fees derived from the business of buying, selling or promoting the purchase, sale or lease, as an agent or broker on a commission or fee basis, of any property, service, stock, bond or security (a) any receipts from sales of tangible personal property handled on consignment In an exchange in which the money or other consideration received does not represent the value of the property or service exchanged, "gross receipts" means the reasonable value of the property or service exchanged (1) "gross receipts" means the total amount of money or the value of other consideration received from selling property in New Mexico, from leasing or licensing property employed in New Mexico, from granting a right to use a franchise employed in New Mexico, from selling services performed outside New Mexico, the product of which is initially used in New Mexico, or from performing services in New Mexico. As used in the Gross Receipts and Compensating Tax Act: If you would like more information about how this change may apply to your business, contact us. While there is no requirement for sellers to collect the New Mexico gross receipts tax or compensating tax from the customer, the seller must provide a general statement that the New Mexico gross receipts tax is included in the price of the good or service, if the tax is not separately stated on the customer invoice. New Mexico also updated the requirements related to how sellers state the gross receipts tax on their invoices. New Mexico has an economic nexus threshold of $100,000 in sales made during the previous calendar year. Nexus can be established with New Mexico through physical presence or economic nexus. As of July 1, 2021, taxpayers must pay state and local rates for most goods and certain services based on the customer’s New Mexico location. The change impacts both in-state and out-of-state sellers. Under the change, if an out-of-state seller ships a taxable item to a customer in New Mexico, the compensating tax, including New Mexico state and local taxes, would be sourced to the customer’s location. For example, in-person services, including medical services, physical therapy, home health care, and services provided by barbers and cosmetologists, will now be sourced to the location of the service.Ĭhanges to the sourcing of the state’s compensating tax mirror those made to the gross receipts tax. Most goods and certain services subject to New Mexico gross receipts or compensating tax will now be sourced to the location where the product or service is provided. New Mexico recently changed the reporting location for its gross receipts tax and compensating tax to destination-based sourcing for most goods and certain services.
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