How to Register to Collect and Pay Gross Receipts Tax in New Mexico

New Mexico does not have a state sales tax but rather a gross receipts tax. And if you have a business in New Mexico you are probably subject to this tax. The gross receipts tax applies on the total amount 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 selling research and development services performed outside New Mexico when the product of those services is initially used in New Mexico.

According to the New Mexico Taxation and Revenue Department, the gross receipts tax is imposed on the business but is generally passed on to the purchaser, either as a separate item on an invoice or included in the sale price. The gross receipts tax rate includes the state, county and municipal rates and ranges from 5.125% to 8.6875% depending on the location in New Mexico. The rates can be changed twice a year in January or July, and you can find tables of Current and Historic Rates on the New Mexico Taxation and Revenue Department website.

You could be subject to the New Mexico gross receipts tax if your business is established outside the state but you are considered to have nexus in New Mexico. According to the New Mexico Taxation and Revenue Department, some of the criteria that establish nexus in New Mexico include having a business location, having property stored, employing any person or contracting a salesperson or agent in the state, leasing equipment that is used in the state, performing services in the state, licensing the use of intangible property in the state, and transporting property in the state using your own vehicles.

To operate a business in New Mexico you need to register with the New Mexico Taxation and Revenue Department to obtain a taxpayer identification number. This number is referred to as a CRS number, for the Combined Reporting System. You can register by filing Form ACD-31015, Application for Business Tax Identification Number with any local tax office. This same form is used for all types of business entities. Or you can register online using the New CRS Registration. There is no fee for applying for a CRS number.

Once you have a CRS number and are doing business in New Mexico, you must collect the gross receipts tax and file tax returns. If your average total tax liability for any combination of taxes due in New Mexico is over $200 a month, you must file Form CRS-1 each month. As indicated by the New Mexico Taxation Department in Information for New Businesses once you have a CRS number you must file returns even if you have no gross receipts and owe no taxes for a period.

The CRS-1 Forms (long and short forms) are in the CRS-1 Filer's Kit that is mailed every June and December. All taxpayers who must file monthly were required to begin filing their CRS-1 forms electronically starting for the month of June, 2011. You can file online using the NM E-Filing Services.

Sources:

CRS-1 Filer's Kit, New Mexico Taxation and Revenue Department

Current and Historic Rates, New Mexico Taxation and Revenue Department

Form ACD-31015, Application for Business Tax Identification Number

Forms - Gross Receipts, New Mexico Taxation and Revenue Department

Gross Receipts, New Mexico Taxation and Revenue Department

Information for New Businesses, New Mexico Taxation and Revenue Department

New CRS Registration, New Mexico Taxation and Revenue Department

Nexus, New Mexico Taxation and Revenue Department

NM E-Filing Services, State of New Mexico