How to Get an NTTC in New Mexico and Other Tax-Related Questions

Businesses in New Mexico that sell products or services must have a state tax identification number as well as a New Mexico Gross Receipts Tax (GRT) number. Businesses must also get a New Mexico Non-Taxable Transaction Certificate (NTTC) from the New Mexico Taxation and Revenue Department (TRD) before they can sell tangible personal property for resale.

Businesses must submit an application to the TRD with their tax ID number, GRT number, and a description of the kinds of items being sold in order to receive an NTTC. If the business is qualified, the TRD will assess the application and issue an NTTC. Businesses must renew their NTTC every three years, it’s crucial to remember this.

In New Mexico, nonprofit organizations may be qualified for some exemptions but are often not free from paying sales tax. For instance, charitable organizations that offer particular services could be exempt from GRT. Additionally, charitable organizations that sell products to raise money can be qualified for a specific exemption. You must speak with the TRD to find out if your nonprofit qualifies for any exemptions.

In general, sunglasses are not allowed during New Mexico’s tax-free weekend. Typically, tax-free weekends apply to apparel and footwear with a purchase price of under a specific amount. However, depending on the local laws in your location, there can be some exceptions, so it’s important to verify with the TRD or your neighborhood merchants.

Businesses who sell tangible personal property for the purpose of resale are required by New Mexico to provide a resale certificate. This certificate serves as proof that the buyer is buying the products to resell and will not be charged sales tax. Businesses must submit an application to the TRD for a resale certificate that includes their tax ID number, GRT number, and an explanation of the kinds of items being sold.

In conclusion, companies who sell tangible personal property for resale in New Mexico must take the necessary steps to obtain an NTTC. Although nonprofits may qualify for some sales tax exemptions, they are often not free from paying sales tax. The tax-free weekend usually does not apply to the purchase of sunglasses, and companies that sell tangible personal property for resale are required to get a resale certificate. Contact the New Mexico TRD for further details on these and other tax-related issues.