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.

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Author

Katherine Mullen

Katherine Mullen is a Regulatory Counsel at Sovos. Within Sovos’ Regulatory Analysis function, Katherine researches U.S. transaction tax. Katherine 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. Katherine is a member of the Massachusetts Bar.
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