1. Retail sales of tangible personal property
2. Leases and rents of tangible personal property
3. Sales of licenses, franchises, and trademarks
In New Mexico, a few things are also exempt from sales tax. These comprise, but are not limited to:
2. Household food
4. Newspapers and magazines
Due to recent changes in tax regulations, Amazon now collects tax in the majority of states, including New Mexico. In the past, unless they had a physical presence in the state, internet sellers were not obligated to collect sales tax. This was altered, nevertheless, by the Supreme Court’s ruling in the case of South Dakota v. Wayfair, Inc. in 2018. The court determined that even if an online shop does not have a physical presence in a state, states may nonetheless require them to collect sales tax.
Depending on where the sale takes place, Amazon charges different amounts of tax. The average tax rate in New Mexico is 5.125%. However, additional local taxes can apply to some purchases.
You may look at your order history to see if you paid tax on an Amazon purchase. Your order summary should include the tax amount. To find out if you were taxed, check your credit card statement. Amazon refunds taxes, right?
Amazon does not provide customers a tax refund in cash. You can ask for help from Amazon customer service if you think the tax you were charged was improper. In rare circumstances, you might be able to submit a claim to the state to ask for a tax refund that was overpaid.
In conclusion, the majority of products and services, including those sold by Amazon, are taxed in New Mexico. The location of the sale and the kind of item being sold both affect the tax rate. Food and prescription medications are two examples of things that are excluded from sales tax. You can get help from the proper authorities or customer support if you have questions about the New Mexico sales tax or transactions made on Amazon.