New Mexico: Adopted Rules Address Gross Receipts Taxation of Marketplaces and Services Performed

Adopted N.M. Regs. Sections 3.2.1.18, 3.2.1.21, 3.2.1.23, 3.2.300.9, N.M. Tax. & Rev. Dept. (10/13/21). The New Mexico Taxation and Revenue Department adopted administrative regulations covering the new method of sourcing for marketplace providers and sellers. The rules include an explanation of how a service provider’s receipts derived from performing a service in New Mexico, or performing a service outside New Mexico the product of which is initially used in New Mexico, generally are subject to New Mexico’s gross receipts tax unless a specific exemption or deduction provided under state law applies. The rules provide definitions for relevant terms, explain instances of partial performance of services within New Mexico, and include a possible credit for taxes paid on services performed outside New Mexico. Please contact us with any questions.

Source Deloitte

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