The New Mexico Taxation and Revenue Department recently published an updated version of Publication FYI-102, Information for New Businesses. This publication covers a number of subjects related to registration, filing, and payment of business taxes in New Mexico including withholding tax.
There is one change of note in this most recent release, which provides a definition for “Engaging in Business” for New Mexico registration purposes.
- Registration with the Department: this section added a definition to “engaging in business”, which is:
- “Engaging in business” means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit. For a person who lacks physical presence in this state, including a marketplace provider, “engaging in business” means having, in the previous calendar year, total taxable gross 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 pursuant to Section 7-1-14 NMSA 1978, of at least one hundred thousand dollars ($100,000).”
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