Show Subnavigation

What is an agent for the collection of compensating tax?

Under certain circumstances, persons selling property or a combination of property and service to someone engaged in business in New Mexico may be required to collect compensating tax. The seller must not owe gross receipts tax on the sales, and the buyer must use the property, or property and service, in New Mexico (Section 7-9-10 NMSA 1978). Here are some examples of common business activities that incur agency for out-of-state businesses:- Regularly soliciting orders in New Mexico;
- Advertising in New Mexico media or soliciting orders through programs broadcast by New Mexico radio, television, or cable television systems, or
- Maintaining a stock of goods in this state.

back to list
View Our Most Popular Pages & Services
Latest News:
Secretary Demesia Padilla

Secretary Demesia Padilla,CPA

Learn more about secretary Padilla

Online Services

Find an Online Service to Serve Your Needs

Taxation and Revenue New Mexico

1100 South St. Francis Drive
Santa Fe, NM 87504
(505) 827-0700

TRD Home          Privacy & Security          Site Policies          Accessibility/Non-Discrimination Statement          
About Us          Contact Us      Site MapLink to New Mexico Tax and Revenue Facebook Page

call us E-Mail Contact Us