What is NM gross receipts?

What is NM gross receipts?

Gross receipts are the total amount of money received from: Selling, leasing, or licensing New Mexico property; Granting a right to use a franchise in New Mexico; Performing services in New Mexico; and.

What is subject to gross receipts tax in New Mexico?

The tax is imposed on the gross receipts of businesses or people who sell property, perform services, lease or license property or license a franchise in New Mexico. The same goes for those who sell research and development services performed outside New Mexico when the resulting product is initially used here.

How do you calculate gross receipts tax?

To find your gross receipts for personal income, add up your sales. Then, subtract your cost of goods sold and sales returns and allowances to get total income. The better your financial records are, the easier the process will be.

Who is exempt from NM gross receipts tax?

Receipts subject to one of the following taxes are exempt from governmental gross receipts tax: gross receipts tax; compensating tax; motor vehicle excise tax; gasoline tax; special fuel supplier’s tax; the oil and gas emergency school, severance, conservation and ad valorem taxes; resources tax; processors tax; …

What is GRT in Albuquerque?

The gross receipts tax rate for purchases made in the metro area ranges from 6.375 to 8.3125 percent throughout the MSA; Albuquerque’s Gross Receipts Tax rate is 7.875 percent. The compensation tax (use tax) for purchases made outside New Mexico is 5.125 percent.

What is not included in gross receipts?

Gross receipts do not include the following: taxes collected for and remitted to a taxing authority if included in gross or total income (such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees);

What is the difference between gross receipts tax and sales tax?

Unlike a sales tax, a gross receipts tax is assessed on businesses and apply to business-to-business transactions in addition to final consumer purchases, leading to tax pyramiding. A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions.

What is GRT in real estate?

Gross receipts tax is a tax some businesses must pay on their gross receipts. Unlike sales tax, gross receipts tax is not typically paid by the consumer (e.g., at the point of sale). However, GRT can be imposed on consumers in some areas. Some states levy gross receipts tax instead of corporate income tax.