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Can I collect sales tax from customers in different states without violating tax laws in New Mexico? What are the requirements?

Sales Tax Collection Requirements for Out-of-State Businesses in New Mexico

If you are an out-of-state business selling goods or services in New Mexico, you may be required to collect and remit sales tax to the state. The requirements for sales tax collection vary depending on the state and the type of business you operate.

Non-Taxable Transaction Certificates (NTTC)

New Mexico offers Non-Taxable Transaction Certificates (NTTC) to businesses that qualify for tax-exempt purchases [1]. To obtain an NTTC, you must register with the New Mexico Taxation and Revenue Department and receive a Business Tax Identification Number. You can then obtain an NTTC online through the Taxpayer Access Point (TAP) [1].

Multijurisdictional Sales and Use Tax Certificate

If you are not required to register with the New Mexico Taxation and Revenue Department, you may be able to execute a Multijurisdictional Sales and Use Tax certificate issued by the Multistate Tax Commission or a Border States Uniform Sale for Resale certificate [1].

Sales Threshold

If you do not maintain a physical location in New Mexico, you may be exempt from state sales tax licensing and collection requirements if your retail sales of tangible personal property, commodities, and/or services made annually into New Mexico in both the current and previous calendar years are less than $100,000 [3]. However, you must also notify customers of their obligation to remit use tax [3].

South Dakota v. Wayfair, Inc.

It is important to note that the Supreme Court case South Dakota v. Wayfair, Inc. allows states to require out-of-state businesses to collect and remit sales tax if they meet certain sales or transaction requirements [2].

In summary, if you are an out-of-state business selling goods or services in New Mexico, you may be required to collect and remit sales tax to the state. The requirements for sales tax collection vary depending on the state and the type of business you operate. You may be able to obtain a Non-Taxable Transaction Certificate (NTTC) or execute a Multijurisdictional Sales and Use Tax certificate. If you do not maintain a physical location in New Mexico, you may be exempt from state sales tax licensing and collection requirements if your retail sales meet certain criteria. It is important to stay up-to-date on state sales tax laws, including the Supreme Court case South Dakota v. Wayfair, Inc. [1][2][3].

Source(s):
Jurisdiction

New Mexico