[et_pb_section fb_built=”1″ _builder_version=”4.16″ _module_preset=”default” background_repeat=”round” custom_margin=”0px||||false|false” custom_padding=”0px||0px|||” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ _module_preset=”default” use_background_color_gradient=”on” background_color_gradient_stops=”#ffffff 0%|#dedede 100%” background_color_gradient_start=”#ffffff” background_color_gradient_end=”#dedede ” custom_margin=”0px||||false|false” custom_padding=”4px||4px||true|false” background_color_gradient_stops_tablet=”#ffffff 0%|#dedede 100%” background_color_gradient_stops_phone=”#ffffff 0%|#dedede 100%” border_width_all=”1px” border_color_all=”#c9c9c9″ global_module=”210″ saved_tabs=”all” locked=”off” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_dmb_breadcrumbs font_icon=”%%20%%” home_icon=”%%236%%” use_home_text=”on” home_text=”Businesses” _builder_version=”4.16″ _module_preset=”default” body_text_color=”#282728″ separator_text_color=”#282728″ link_text_color=”#000000″ custom_padding=”0px||0px|15px|false|false” global_colors_info=”{}”][\/et_pb_dmb_breadcrumbs][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ specialty=”on” padding_bottom_1=”0px” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”Explore Section & Events” use_icon=”on” font_icon=”||divi||400″ _builder_version=”4.16″ _module_preset=”7b5e95ba-231a-438c-8dd9-6676746c29e6″ global_colors_info=”{}”][\/et_pb_blurb][et_pb_sidebar area=”et_pb_widget_area_1″ _builder_version=”4.16″ _module_preset=”50d7f88b-470d-49c8-b370-96c4a9bca4df” custom_margin_tablet=”10px||||false|true” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|4%|20px|4%|false|true” saved_tabs=”all” locked=”off” global_colors_info=”{}”][\/et_pb_sidebar][\/et_pb_column][et_pb_column type=”3_4″ specialty_columns=”3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_row_inner _builder_version=”4.16″ _module_preset=”default” background_color=”#ffffff” custom_padding=”|20px||20px|false|false” global_colors_info=”{}”][et_pb_column_inner saved_specialty_column_type=”3_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_post_title meta=”off” _builder_version=”4.16″ _module_preset=”default” title_font=”|300|||||||” title_font_size=”50px” title_letter_spacing=”-3px” global_colors_info=”{}”][\/et_pb_post_title][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
This tax is sometimes called a \u201cuse tax,\u201d or \u201cbuyer pays.\u201d Compensating tax helps to protect New Mexico businesses from unfair competition from out-of-state businesses that are not subject to gross receipts tax.<\/p>\n
Compensating tax is imposed when a business or an individual uses tangible property, a service, a license or a franchise that was acquired as a result of a transaction with a person located outside the state that would have been subject to gross receipts tax if the seller had nexus in New Mexico. Compensating tax is also imposed on manufacturers who use property they manufacture. The compensating tax is imposed at a rate generally determined by the location where the property, service, license, or franchise is used, and is the same as the gross receipts tax rate for that location. More information on determining the reporting location for gross receipts tax may be found in the Publication FYI-230 Compensating Tax.<\/a><\/strong><\/p>\n Compensating tax is reported on a Form TRD-41412 Compensating Tax Return and is due on or before the 25th day of the month following the report period in which the taxable transaction occurs.<\/p>\n This tax is deposited in the tax administration suspense fund at the state treasury. After necessary refunds and interest are paid, the state distributes 10% of receipts to the small cities assistance fund and 10% to the small counties assistance fund. The remainder goes to the general fund.<\/p>\n To contact the Department<\/a><\/strong><\/p>\n E- File<\/a><\/strong> [\/et_pb_text][et_pb_code _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_code][\/et_pb_column_inner][\/et_pb_row_inner][\/et_pb_column][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Compensating tax (Section 7-9-7 NMSA 1978) is an excise tax imposed on persons using tangible property, services, licenses or franchises in New Mexico This tax is sometimes called a \u201cuse tax,\u201d or \u201cbuyer pays.\u201d Compensating tax helps to protect New Mexico businesses from unfair competition from out-of-state businesses that are not subject to gross receipts […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-569","page","type-page","status-publish","hentry"],"yoast_head":"\nContact Information<\/h3>\n
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