New Mexico Enacts Economic Nexus and Marketplace Sales Tax Rules

[May 22, 2019] With the passage of House Bill 6, effective July 1, 2019, the definition of “engaging in business” has been amended to apply to persons lacking physical presence in New Mexico provided they had at least $100,000 in taxable gross receipts from sales, leases and licenses of tangible personal property the previous calendar year. NMSA §7-9-3.3. A “person” includes a marketplace provider. Id. As such, marketplace providers with sales into New Mexico over $100,000 must collect tax on behalf of their marketplace sellers. NMSA §7-9-3.5(2)(g). New Mexico permits marketplace sellers to deduct receipts for sales that are facilitated through a marketplace provider, so long as the seller obtains documentation from the provider indicating that the provider is registered with the department as has remitted or will remit taxes due on gross receipts from applicable transactions. HB 06 Section 36.

Author

Katherine Mullen

Katherine Mullen is a Tax Law Research Associate in the Regulatory Analysis department at Sovos. Her research focuses on US transaction tax and VAT law in several African, Asian and Middle Eastern countries. Katherine is a lawyer and a member of the Massachusetts Bar. Prior to joining Sovos, she was a paralegal for O’Neill & Neylon, an estate planning law firm. She holds a B.A. in English Literature from McGill University, an M.S. in Library Science from Simmons College and a J.D. from Suffolk University School of Law.
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