Understanding the Gross Receipt Tax in Santa Fe, NM

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What is the gross receipt tax in Santa Fe NM?
The Gross Receipts Tax rate varies throughout the state from 5.125% to 9.4375%. 2. Double-click a form to download it. Title Open File Gross Receipts Tax Filer’s Kit Nontaxable Transaction Certificates GRT-PV Gross Receipts Tax Payment Voucher Open File TRD-41413 Gross Receipts Tax Return Open File 1 more row
Read more on www.tax.newmexico.gov

The city of Santa Fe, New Mexico, levies a gross receipts tax on companies that conduct business there. Businesses that conduct sales, provide services, or lease personal property within the city are subject to the tax. A percentage of a company’s whole revenue, which includes all sales and services rendered, is the gross receipt tax.

Roads, parks, and public safety are only a few of the city’s numerous public works and services that are supported by the gross receipts tax. Depending on the type of business and the quantity of money produced, the tax rate varies. The tax rate, for instance, is 7.3125% for construction services and 8.3125% for retail sales.

New Mexico levies a sales tax in addition to the gross receipts tax on specific goods and services. The state’s current sales tax rate is 5.125%, although local governments are free to tack on additional fees. The combined state and local sales tax rate in Santa Fe is 8.4375%.

Both residents and non-residents who make money in New Mexico are subject to an income tax. Depending on income level, the state income tax rates range from 1.7% to 4.9%.

Although it can be difficult to calculate sales tax, it is crucial for companies that offer goods or services. You will need to know the total amount of the sale as well as the applicable sales tax rate in order to calculate the sales tax for a specific transaction. To calculate the amount of tax due, multiply the total by the sales tax rate.

The state of New Mexico does not impose a car property tax, which brings up a last point. Owners of vehicles must, however, pay registration costs and might be charged local taxes.

In conclusion, it’s critical for both enterprises and citizens to comprehend the numerous taxes levied in Santa Fe and New Mexico. While sales and income taxes finance a number of state initiatives and services, the gross receipts tax is a key source of funding for the city. Although tax calculation can be a little challenging, there are resources available to assist both people and corporations.