How to Register New Mexico Sales Tax Permit 2024: A Step-by-Step Guide

How to Register for Sales Tax Permit in New Mexico

Ready to launch your exciting business venture in New Mexico? As thrilling as it may be, navigating your way through the maze of local laws and acquiring necessary sales tax permits is crucial. That’s why we’re here to ease your business formation journey with our comprehensive guide on registering a sales tax permit in New Mexico.

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On this page, you’ll learn about the following:

What is a Sales Tax Permit
- What You Need to Register for Sales Tax Permits
How to Apply for a Sales Tax Permit in New Mexico
Who is Exempted to Apply for a Sales Tax Permit
FAQs

What is a Sales Tax Permit

A sales tax permit, a seller’s permit, is a legal authorization allowing businesses to collect and remit sales tax on taxable products and services. In New Mexico, the state sales tax rate is 5.13%, and businesses are required to collect and remit this tax to the New Mexico Taxation and Revenue Department. Failure to register for a sales tax permit and properly collect and remit sales tax can result in fines, penalties, and potential legal issues.

What You Need to Register for Sales Tax Permits

After starting your business in New Mexico, begin registering for a sales tax permit; gathering the necessary information about your business is essential. This information is crucial to ensure a smooth and accurate application process. Here is a detailed explanation of the information you will need to complete the registration process:

Legal business name and address: The official name under which your business operates and is registered with the state. The address should be the principal place of business where your company operates, including the street address, city, and zip code.
Federal Employer Identification Number (EIN) or Social Security Number (SSN): An EIN is a unique, nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for tax identification purposes. You may use your SSN instead of an EIN if your business is a sole proprietorship or a single-member LLC with no employees.
Business structure: This refers to the legal structure of your business, such as a Limited Liability Company (LLC), corporation, partnership, or sole proprietorship. The business structure determines how your company is taxed and the level of liability protection it receives.
Business start date: This is the date when your business officially began operations. If you are still determining the exact date, provide an approximate date.
Description of products or services offered: Briefly describe your business’s products or services. This information helps the New Mexico Taxation and Revenue Department understand the nature of your business and determine if it is subject to sales tax collection.
Estimated annual sales: Estimate your business’s annual sales. This information is used by the New Mexico Taxation and Revenue Department to determine if your business meets the sales threshold for sales tax collection in New Mexico.
Contact information for the business owner or responsible party: Provide the full name, phone number, email address, and mailing address of the individual responsible for managing the business’s sales tax compliance. This person may be the business owner, a partner, or a designated employee.

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How to Apply for a Sales Tax Permit in New Mexico

Once you have gathered the necessary information, follow these steps to register for a sales tax permit in New Mexico:

Step 1: Gather Business Information

Before starting the registration process, double-check that you have all the business information mentioned above. Having all the necessary details readily available will help you complete the application accurately and efficiently, minimizing the chances of errors and delays.

Step 2: Go to Your State’s Website

Visit the New Mexico Taxation and Revenue Department website to access the sales tax permit registration portal. This website will provide you with detailed instructions on how to register, as well as any additional state-specific requirements. Familiarize yourself with the instructions and note any unique requirements for New Mexico to ensure a smooth application process.

Step 3: Apply for Sales Tax Permit

Depending on New Mexico’s preferences, you may apply for a sales tax permit online or by mail and send it to the “Taxpayer Access Point‘s online portal, if required, and complete the digital version of the ACD-31015. Print the form clearly and legibly, using black or blue ink if you will apply by mail. Double-check your entries before submitting the form to avoid any potential issues.

Step 4: Pay the Seller’s Permit Fee

Some states may charge a fee for obtaining a sales tax permit. In New Mexico, the $0 (Free) must be paid when submitting your application. Confirm the payment amount and method with the

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Who is Exempted to Apply for a Sales Tax Permit

While most businesses selling tangible goods or certain services are required to collect and remit sales tax in New Mexico, there are some exemptions. The following entities or transactions may be exempt from applying for a sales tax permit:

Nonprofit organizations: Many states, including New Mexico, exempt nonprofit organizations, such as charities, religious institutions, and educational institutions, from collecting sales tax on their sales. However, they may still need to apply for an exemption certificate from the New Mexico Taxation and Revenue Department.
Resellers or wholesalers: Businesses in New Mexico that purchase goods or services for resale or as components of other products may be exempt from paying sales tax. These businesses must typically obtain a resale certificate or provide a tax-exempt number to their suppliers.
Certain goods and services: Some states exempt specific items or services from sales tax, such as groceries, prescription medications, and medical devices. Businesses selling only these exempt goods or services may not need a sales tax permit.
Occasional or casual sellers: Individuals in New Mexico who occasionally sell items at garage sales, flea markets, or online platforms may be exempt from obtaining a sales tax permit, provided their sales do not constitute a regular business activity.
Businesses operating exclusively in sales-tax-free states: If a business operates solely in a state with no sales tax, such as Delaware, Montana, New Hampshire, or Oregon, it is not required to obtain a sales tax permit. However, this exemption does not apply to businesses in New Mexico.

It is crucial to note that sales tax exemption requirements vary by state, and businesses should consult the New Mexico Taxation and Revenue Department or a tax professional to determine their specific obligations in New Mexico. Additionally, even if a business is exempt from obtaining a sales tax permit, it may still be required to file annual or periodic reports with the New Mexico Taxation and Revenue Department to maintain its exempt status.

FAQs

What is a Sales Tax Permit?

A Sales Tax Permit is a document that allows you to collect and remit sales tax in New Mexico.

Who needs to register for a Sales Tax Permit in New Mexico?

Anyone conducting business in New Mexico who sells tangible personal property must register for a Sales Tax Permit.

How do I register for a Sales Tax Permit in New Mexico?

You can register online through the New Mexico Taxation and Revenue Department’s website or by submitting a paper application.

Can I register for a Sales Tax Permit over the phone?

No, the NMTRD does not accept registration over the phone.

Is there a fee to register for a Sales Tax Permit in New Mexico?

No, there is no fee to register for a Sales Tax Permit in New Mexico.

How long does it take to receive my Sales Tax Permit after I apply?

Permit processing times vary, but typically it takes around two weeks to receive your Sales Tax Permit.

Can I activate my Sales Tax Permit before I receive it in the mail?

Yes, you can activate your Sales Tax Permit online as soon as you receive your confirmation number.

How long is my Sales Tax Permit valid?

Your Sales Tax Permit is valid until it is cancelled by either you or the NMTRD.

What information do I need to provide to register for a Sales Tax Permit in New Mexico?

You will need to provide your business and personal information, including your Taxpayer Identification Number, mailing address, and contact information.

Do I need a separate Sales Tax Permit for each location in New Mexico where I operate my business?

No, you only need one Sales Tax Permit for all locations where you conduct business in New Mexico.

What happens if I register for a Sales Tax Permit, but I do not collect sales tax?

You are still required to file a Sales and Use Tax Return even if you did not collect any sales tax.

How often do I need to file a Sales and Use Tax Return in New Mexico?

You must file your Sales and Use Tax Return on a monthly, quarterly, or annual basis, depending on the amount of your taxable sales.

What is the due date for the Sales and Use Tax Return?

The due date for the Sales and Use Tax return depends on your filing frequency, but it is usually the 25th day of the month following the end of your reporting period.

Is there a penalty for missing the due date for the Sales and Use Tax return?

Yes, there is a penalty for missing the due date.

Can I file my Sales and Use Tax return online?

Yes, you can file your Sales and Use Tax return online through the New Mexico Taxpayer Access Point.

How do I close my Sales Tax Permit in New Mexico?

You can close your Sales Tax Permit online through the New Mexico Taxpayer Access Point or by submitting a written request to the NMTRD.

Do I need to renew my Sales Tax Permit in New Mexico?

No, there is no need to renew your Sales Tax Permit in New Mexico.

Can I transfer my Sales Tax Permit to another business owner?

No, you cannot transfer your Sales Tax Permit to another business owner.

What happens if I do not register for a Sales Tax Permit in New Mexico?

If you conduct business in New Mexico without a Sales Tax Permit, you may be fined or penalized.

Can I register for a Sales Tax Permit at any time during the year, or are there specific registration periods?

You can register for a Sales Tax Permit at any time during the year, but you must begin collecting and remitting sales tax once you receive your permit.

What sales are subject to New Mexico gross receipts tax?

All gross receipts are subject to sales tax, apart from receipts from sales of medicine, some food products, and certain construction services.

What documents are necessary to register for a Sales Tax Permit in New Mexico?

A Business Registration Application and the Form ACD-31015 Business Registration Worksheet are required for a New Mexico Sales Tax Permit application.

If I have multiple business activities, should I file separate registration forms?

No. If you engage in several business activities in different locations, it does not necessarily mean that you should file separate forms to obtain a separate Sales Tax Permit.

What if I’m selling through a marketplace facilitator and/or using drop shipping?

In New Mexico, in the case of a marketplace dealer collecting taxes on behalf of the vendors, vendors should not file Sales Tax.

When can I display my permit to my customers?

Your sales & use tax permit must first be registered before displaying your permit is legal.

What if my business activity location changes?

You should file an application so you Community Fee and Sales Tax account with taxpayers’ approval, enabling the re-functionalization of the account.

When I move, do I need to cancel my New Mexico Sales Tax Permit?

It may be a good idea to start a new ownership, terminate this permit, and request another if you are not making any business transactions in New Mexico.

Can one business have multiple Sales Tax Permits in the same location?

Indeed, Sales Tax permits can be created for different types of registrations.

What is a Sales Tax Permit in New Mexico?

A Sales Tax Permit is a registration issued by the New Mexico Taxation and Revenue Department that allows a business to collect and remit the state’s Gross Receipts Tax.

Who needs to obtain a Sales Tax Permit in New Mexico?

Any business that sells goods or services within the state of New Mexico is required to obtain a Sales Tax Permit.

How can I apply for a Sales Tax Permit in New Mexico?

You can apply for a Sales Tax Permit in New Mexico by completing the online application process through the New Mexico Taxation and Revenue Department website.

Can I apply for a Sales Tax Permit in New Mexico if I have a home-based business?

Yes, you can apply for a Sales Tax Permit in New Mexico even if you operate a home-based business.

How much does it cost to apply for a Sales Tax Permit in New Mexico?

There is no fee to apply for a Sales Tax Permit in New Mexico.

When is the best time to apply for a Sales Tax Permit in New Mexico?

It is recommended that you apply for a Sales Tax Permit in New Mexico at least 30 days before starting your business operations.

Do I need a Sales Tax Permit in New Mexico if I’m a nonprofit organization?

No, nonprofit organizations are generally exempt from collecting and remitting a sales tax in New Mexico.

Can I apply for a Sales Tax Permit in New Mexico if I don’t have a physical presence in the state?

Yes, you can apply for a Sales Tax Permit in New Mexico even if you don’t have a physical presence in the state.

How long does it take to receive a Sales Tax Permit in New Mexico?

It typically takes 7-10 business days to receive a Sales Tax Permit in New Mexico after submitting your application.

What information do I need to provide when applying for a Sales Tax Permit in New Mexico?

You will need to provide your business name, address, phone number, social security number or federal identification number, and a detailed description of your business activities.

How do I notify the New Mexico Taxation and Revenue Department if I relocate my business?

You will need to update your business information through the New Mexico Taxpayer Access Point (TAP).

What is the penalty for failing to obtain a Sales Tax Permit in New Mexico?

Failing to obtain a Sales Tax Permit in New Mexico can result in fines and legal repercussions.

Can I register for a Sales Tax Permit in New Mexico if I have an out-of-state business or am an online seller?

Yes, you will still need to register for a Sales Tax Permit in New Mexico if you have a business that sells in the state.

How do I file the Gross Receipts Tax in New Mexico?

You can file the Gross Receipts Tax in New Mexico through the New Mexico Taxpayer Access Point (TAP).

Do I need to collect city and county municipal taxes in addition to the state sales tax in New Mexico?

Yes, many municipalities in New Mexico require additional city and county sales taxes to be collected.

How do I obtain my Tax ID number in New Mexico?

You can obtain your Tax ID number in New Mexico by contacting the New Mexico Taxation and Revenue Department.

Can I use my federal Tax ID number for my Sales Tax Permit in New Mexico?

Yes, you can use your federal Tax ID number to apply for your Sales Tax Permit in New Mexico.

How do I report and remit my sales taxes in New Mexico?

You can report and remit your sales taxes in New Mexico through the New Mexico Taxpayer Access Point (TAP).

What happens if I don’t pay my sales taxes in New Mexico?

If you do not pay your sales taxes in New Mexico, the state can take legal action to collect the debt, including seizing your assets and levying fines or penalties.

How often do I need to file my Gross Receipts Tax in New Mexico?

Your filing frequency for Gross Receipts Tax in New Mexico will depend on your business activity and the amount of gross receipts you collect.

Can I apply for a Sales Tax Permit in New Mexico if I run an online business?

Yes, you will still need to register for a Sales Tax Permit in New Mexico even if you run an online business.

How can I update my business address on my Sales Tax Permit in New Mexico?

You can update your business address through the New Mexico Taxpayer Access Point (TAP).

Do I need to include sales tax in the price of my goods and services in New Mexico?

Yes, sellers in New Mexico are required to include the state sales tax in the price of their goods or services.

Can I apply for a Sales Tax Permit in New Mexico if I’m a sole proprietor?

Yes, you can apply for a Sales Tax Permit in New Mexico if you’re a sole proprietor.

Can I apply for a Sales Tax Permit in New Mexico if I operate a temporary or seasonal business?

Yes, you will still need to register for a Sales Tax Permit in New Mexico even if you operate a temporary or seasonal business.

Can I sell tax-exempt items in New Mexico without a Sales Tax Permit?

No, you must have a Sales Tax Permit in New Mexico to sell taxable items, even if some items are tax-exempt.

How can I cancel my Sales Tax Permit in New Mexico?

To cancel your Sales Tax Permit in New Mexico, you’ll need to file a request through the New Mexico Taxpayer Access Point (TAP).

What is the rate of the Gross Receipts Tax in New Mexico?

The rate for Gross Receipts Tax in New Mexico depends on the location and classification of your business activity.

Conclusion

Registering for a sales tax permit in New Mexico is critical for any business selling taxable goods or services. By following the steps outlined in this guide, you can ensure a smooth and efficient registration process, allowing you to focus on the growth and success of your business. Staying compliant with the New Mexico Taxation and Revenue Department not only helps you avoid potential fines and legal issues but also builds trust with your customers and supports the local economy.

As a business owner in New Mexico, it is essential to remain up-to-date with any tax laws and regulations changes and the filing requirements for your sales tax returns. By staying informed and proactive in managing your sales tax obligations, you can continue to operate your business with confidence, contributing to the thriving economy of The Land of Enchantment. Visit LLCBase regularly to stay informed and access valuable resources tailored to your needs. We aim to provide you with the most up-to-date information and support, ensuring your business’s continued success in New Mexico.