July 22, 2021
New Mexico has issued a publication (FYI-200) regarding updated sourcing rules. The publication provides explanation and some examples to help taxpayer understand how the new rules might apply. Under the new rules, most New Mexico-based businesses pay the Gross Receipts Tax rate in effect where their goods or the products of their services are delivered. This “destination” sourcing method was mandated by legislation adopted in 2019 and 2020. This also allows the state to tax out-of-state internet-based businesses.
The rules for service providers are complex but they are summarized below:
|Type of Receipts||Impact of 7/1/2021 Change in Law|
|General Services, In Person Professional Services and Tangible Personal Property (Goods)||Change from Origin to Destination Based|
|Professional Services that require an advanced degree or a license from the state to perform (when not in-person)||No Change – Remain Origin Based|
|Construction Services and Real Estate Commissions||No Change – Remain Destination Based|
March 23, 2021
The New Mexico Taxation and Revenue Department has announced it will extend the deadline for filing and paying 2020 New Mexico personal income taxes until May 17, 2021 in accordance with the announced federal extension. ( Personal Income Tax deadline extended until May 17, 03/18/2021 .)
March 3, 2021
The Senate Bill passed last week, would create a four-month gross receipts tax deduction for several types of businesses on their sales of food and non-packaged beverages. Individuals earning up to $31,200 and joint filers earning up to $39,000 would also receive a $600 tax credit for the 2020 tax year.
April 1, 2020
The personal and corporate tax filing deadline has been extended to July 15, 2020, including quarterly personal income tax estimated payments. The filing and paying of withholding tax has been extended to July 25, 2020 for those returns and payments originally due between March 25, 2020 and July 25 2020.
More on Taxes and the Coronavirus Pandemic.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.