New Mexico – State To Tax Out-of-State Sellers And Marketplace Providers


New Mexico is the latest of more than 35 states to adopt economic nexus and impose a sales tax collection requirement on remote businesses that have a certain amount of economic activity in the state.

Starting July 1, 2019, an out-of-state seller or marketplace provider with no physical presence in New Mexico is “engaging in business” in the state if, in the previous calendar year, it has at least $100,000 in total taxable gross receipts from in-state sales. Instead of taxing sales, as is the case with sales tax, New Mexico taxes the gross receipts of business engaged in business in New Mexico.

Though all receipts are presumed taxable in New Mexico, House Bill 6 specifies the $100,000 threshold applies to “receipts from sales, leases and licenses of tangible personal property, sales of licenses and sales of services and licenses for use of real property sourced to this state.” Once the threshold has been met, a retailer must register with the New Mexico Department of Taxation and Revenue and remit the state gross receipts tax as required by law.


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cpa practice advisor
by gail cole
april 11, 2019