Effective July 1 2021, New Mexico is moving to destination-based gross receipts tax (GRT) rates and reporting for sales of tangible personal property. Under destination sourcing, wineries that hold a Direct Wine Shipment permit will be required to pay the combined state and local GRT rate in effect at the shipping address on wine sales shipped directly to consumers in New Mexico. Until July 1, businesses, including wineries, that do not have a physical presence in New Mexico are only required to remit the 5.125% state GRT rate.
The New Mexico Department of Taxation & Revenue has developed a new GRT return form and will be taking its Taxpayer Access Point (TAP) e-filing portal offline from June 30 through July 5 in order upgrade the system. Wineries that file electronically will use the new return form to report GRT for the period ending June 30, which is due by July 25. Additionally, the “CRS number” that businesses use to report taxes will stay the same but will be renamed the Business Tax Identification Number (BTIN).
More information about the upcoming tax changes and an interactive GRT rate map are available on the department’s website.
Note that New Mexico law requires wineries to obtain a permit from the New Mexico ABC and remit GRT and liquor excise tax on all sales of wine shipped directly to consumers in New Mexico regardless of physical presence or economic nexus. Learn more about New Mexico’s direct shipping laws.