New Mexico Sales Tax Registration Guide

Like most states, New Mexico raises state revenue by imposing a tax on commercial transactions. But instead of directly taxing customers with a sales tax, the state imposes a New Mexico gross receipts tax. This, as the name implies, is a tax on the total business sales of New Mexico businesses. Each business must first register the business and register to get a New Mexico tax ID number. The business then pays this special New Mexico sales tax to the Taxation and Revenue Department.

Step 1:

The first thing a new business needs to do is check whether it must file with the New Mexico Public Regulation Commission Corporations Bureau. The following types of business entities must file with this statewide government agency: for-profit corporations, non-profit corporations, cooperatives and limited liability companies. You can find the applicable New Mexico corporation forms at nmprc.state.nm.us/cf.htm.

Choose a New Mexico name and file using that name. After confirming registration with the Corporations Bureau, use that same business name when filing for New Mexico sales taxes and other business taxes imposed by the state and local tax authorities.

Step 2:

See about the need to get a federal employer identification number for your New Mexico business. This is a federal tax ID number, generally for businesses that hire employees. However, there are special categories of other businesses or charities that also have to get an EIN. Find out by going to IRS.gov and running a search for “EIN registration requirements or a similar phrase with the search engine provided on that site.

Step 3:

Complete your New Mexico business registration with the New Mexico Taxation and Revenue Department. The state registers your business for sales tax, gross receipts tax, withholding and other New Mexico business tax at the same time. To use a paper form, go to tax.newmexico.gov/SiteCollectionDocuments/TRD-Forms/Misc/CRS/acd31015f.pdf and fill out the “Application for Business Tax Identification Number” form. You can then go to or send the form to a local office of the taxation department to get your New Mexico tax ID number (called a “CRS identification number”). However, you can get this number immediately by registering online on the “New CRS Registration” page at https://tap.state.nm.us/NM_xwTapCrs.aspx.

Step 4:

Once you have this New Mexico number, you then use that to pay your New Mexico sales tax (gross receipts tax) and other business taxes. You next need to find out how to compute your New Mexico taxes. As of 2010, the Ne Mexico gross receipts tax rate varies from about 5 to 8 percent, depending on the rates in the local county or city. But for more information on how to pay your gross receipts tax, you should read “FYI-105: Gross Receipts and Compensating Taxes: An Overview.” You can find this state tax publication at tax.newmexico.gov/SiteCollectionDocuments/Publications/FYI-Publications/FYI-105__GROSS RECEIPTS and COMPENSATING TAXES – AN OVERVIEW 2009.pdf.

You will get a CRS-1 filer’s kit that tells you the rate for your locale. Always keep up to date with the current rate, as it does change from time to time.

Step 5:

Pay your New Mexico sales tax (gross receipts tax) by using the online E-File system. Go to New Mexico E-Filing Services at https://efile.state.nm.us/uls2/Logon.aspx. Create an account and pay your taxes by the due dates. Use the “Online Filing and Payments” system (see sources) to see the due dates on your monthly New Mexico sales tax returns.

Sources:

New Mexico Taxation and Revenue Department Online Filing and Payments Information