The leased vehicle gross receipts tax applies to persons engaging in business who have receipts from the short-term leasing of vehicles (Section 7-14A-3 NMSA 1978):
- The lease is for a term of six months or less;
- The vehicle is part of a fleet of five or more leased vehicles;
- The vehicle is a passenger automobile that will accommodate six or fewer adults, and
- The lessor acquired the vehicle on or after July 1, 1991.
The leased vehicle gross receipts tax is imposed at a rate of 5% on the receipts from leasing vehicles. The receipts are reported on the Leased Vehicle Gross Receipts Tax and Surcharge return, which can be found in the Business Taxes folder on the Forms and Publications page. The tax is due on or before the 25th day of the month following the month in which the taxable event occurs.
The revenue from this tax is distributed one-fourth to the Local Governments’ Road Fund and three-fourths to the Highway Infrastructure Fund.
Links
FYI-225: Short-Term Leased Vehicles
Leased Vehicle Gross Receipts Tax and Surcharge Return