The New Mexico Taxation and Revenue Department is reminding businesses to adjust their Gross Receipts Tax rate following a decrease in the rate implemented on July 1, according to a department spokesman.
The GRT rate decreased from 5.125% to 5% effective July 1, department spokesman Charlie Moore wrote in an email announcing the reminder.
It is the first decrease in the GRT rate in 40 years, he said.
Along with the decrease is a new GRT deduction that will benefit “certain professional services sold to manufacturers” by reducing taxation multiple times throughout production otherwise known as “pyramiding,” Moore said.
“Businesses need to update the rates being imposed so that they and their consumers can benefit from this critical tax relief,” Stephanie Schardin Clarke, department cabinet secretary, wrote in a statement. “We want to ensure that the tax relief reaches all New Mexicans statewide, and that businesses are correctly complying with the law.”
In addition to the reduction and deduction, the statewide tax rate is also scheduled to be reduced by one-eighth of a percent on July 1, 2023.
To find the GRT rate, visit www.tax.newmexico.gov/governments/gross-receipts-location-code-and-tax-rate-map/
