Local Gross Receipts Taxes

The New Mexico Tax Research Institute (www.nmtri.org) newsletter, Tax Matters, reports new gross receipts tax rate numbers from the Taxation and Revenue Department. As of January 1, 2008, the state will have five jurisdictions with a GRT rate above 8 percent. They are two tourist communities, Taos Ski Valley and Red River, and three in Quay County, San Jon, Logan and Tucumcari. Between 7.5 and 8 percent there are 19 other towns. Albuquerque's seemingly modest 6.875 percent is still 18 percent above 2003. 

The rate hike trend has been pushed by the desire to find money to replace the 0.5 percent which was pulled to pay for the food and medical GRT cuts in 2004.

The newsletter includes a good summary of how the GRT works.