Tax Overview:
The state of New Mexico charges Gross Receipts Tax (GRT). 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, and performing services outside of New Mexico, the product of which is initially used in New Mexico
- Selling research and development services performed outside New Mexico, the product of which is initially used in New Mexico.
Gross receipts are the total amount of money or other consideration received from the above activities. Although the Gross Receipts Tax is imposed on businesses, it is common for a business to pass the Gross Receipts Tax on to the purchaser either by separately stating it on the invoice or by combining the tax with the selling price.
Tax Rate:
The Gross Receipts Tax (GRT) rate varies throughout the state from 5% to 9.3125%.
- It varies because the total rate combines rates imposed by the state, counties, and, if applicable, municipalities where the businesses are located.
- The business pays the total Gross Receipts Tax to the state, which then distributes the counties’ and municipalities’ portions to them.
Due to the variance of the tax rate, reZEN has been set up to integrate with the NM Tax & Revenue’s system, which allows us to match address to GRT Location Codes and tax rates.
Tax Collection:
In New Mexico, we collect the GRT during the settlement of the transaction and pay it on behalf of the agent. GRT is collected from the client on the real estate transaction.
The transaction will appear in the Transaction Information section in reZEN and on your CDA.
