WHAT IS THE NEW MEXICO GROSS RECEIPTS TAX?

Written by Dianne Goodman, CPA


Most states have what is known as a sales tax. New Mexico does not have a sales tax but they have a Gross Receipts Tax. When you engage in business in New Mexico you may be required to pay Gross Receipts Tax. This tax is paid byrepparttar selling business and can be passed on torepparttar 148390 consumer. In general sales and/or leases of goods are taxable. On January 1, 2005 gross receipts tax was eliminated from certain food sales and certain health care services. Prescription drugs are no longer taxable either. Thanks forrepparttar 148391 relief! Howeverrepparttar 148392 unfortunate reality is that sales and performance of services are taxable in New Mexico. This includes services performed outside New Mexico for a product initially used in New Mexico. Letís hope someday New Mexico will try to become more competitive with its neighboring states and eliminaterepparttar 148393 burden of Gross Receipts Tax on services too!

You can viewrepparttar 148394 current Gross Receipts Rate Schedule at http://www.state.nm.us/tax/pubs/gr_rates_dec_05.pdf which is effective through December 31, 2005.

WHAT ARE THE GROSS RECEIPTS TAX OBLIGATIONS OF PURCHASERS IN NEW MEXICO?

If you are a purchaser of nontaxable items you may needrepparttar 148395 tax exempt certificates provided byrepparttar 148396 Department in order to avoid paying tax on these items.

WHAT ARE THE GROSS RECEIPTS TAX OBLIGATIONS OF SELLERS IN NEW MEXICO?

If you are a seller of nontaxable items, you will needrepparttar 148397 tax exempt certificate properly filled out from your purchaser. You only need one certificate forrepparttar 148398 time period specified in order to comply.

WHAT ARE EXEMPTIONS FROM GROSS RECEIPTS TAX?

There are sales which are exempt from Gross Receipts Tax. If you only have exempt receipts, you do not need to file withrepparttar 148399 Department or report this information onrepparttar 148400 CRS-1 form. Examples of exemptions include interest and dividends and receipts of 501C(3) nonprofit groups.

WHAT ARE DEDUCTIONS FROM GROSS RECEIPTS TAX?

There are also deductions from Gross Receipts Tax. If you have receipts and related deductions, you do need to file withrepparttar 148401 Department and you will need to completerepparttar 148402 CRS-1 form. Be sure that you haverepparttar 148403 proper documentation for these deductions in caserepparttar 148404 State audits you. They charge 15% interest and that doesnít includerepparttar 148405 penalties that you will also have to pay! In most cases an NTTC Exemption Certificate is an acceptable form of documentation. These forms can be obtained by filling outrepparttar 148406 form at http://www.state.nm.us/tax/forms/year99/acd31050.pdf . Deductions include sales for resale, construction material and services sold to a construction contractor for use in a construction project and sales by suppliers of components in manufacturing processes. Please note that if you are not current on your reporting and paying of Gross Receipts Tax,repparttar 148407 Department will not provide you with these forms and you may be forced to pay tax you might otherwise not have owed since you wonít haverepparttar 148408 exemption certificates.

How to start a Home Business

Written by Carolyn B Smith


Let me first tell you why I started my home business. Retiring after 30 years of service withrepparttar post office, my income was reduced by 50%. I needed to supplement my income. I knew that I did not want to go back to a forty hour per week job in order to do this, so I decided to start a home based business.

Just like me, I am sure that your first obstacle is what am I going to do and how can I do it? Do I want an online store or residual income? After about two weeks of searching for a suitable business, I discovered that withrepparttar 148356 right resources, one can do both. After initial setup, you will be able to work 15 to 20 hours per week. The whole key to whetherrepparttar 148357 business sinks or swims is traffic. If you donít getrepparttar 148358 people torepparttar 148359 site, there is no sell. The same thing does not work allrepparttar 148360 time; therefore, you must test and retest. To generate traffic you must work, build e-mail list, write articles to name a few but do something each day.

There are many home business companies onrepparttar 148361 internet who, will be there with you to support you on your path to making thousands of dollars. In choosing your business, you will see many which require a small investment; however donít expect to make millions without making an investment. There are some freebies but not a lot. You must research each opportunity and choose what is best suitable

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use