New Mexico restaurants, bars leaving gross receipts tax refund on table
May 19—The state since March has been allowing restaurants, bars and brewpubs to keep the gross receipts tax they collect, but so far only 552 have taken the New Mexico Taxation & Revenue Department up on the offer.
The Legislature early this year approved a four-month gross receipts tax relief for the dining and drinking sector from March 1 to June 30, but merchants must claim the deduction by the 25th day of the month for the prior month. The May 25 deadline is nearing to claim April deductions, according to the taxation department.
Eligible businesses can choose to not charge gross receipts tax on the deductible receipts or to charge the tax but keep the amount charged, which is 8.4375 percent of taxable sales in Santa Fe, the taxation department spelled out it its guidelines.
"The food services industry was especially hard hit by the pandemic, and we want to be sure that restaurant and bar owners are aware of the significant tax relief that is available to them," Taxation Secretary Stephanie Schardin Clarke wrote in an email. "Those who qualify can simply deduct their receipts when they file their gross receipts taxes for the period of March 1 through June 30."
Information on the deduction can be found at tax.newmexico.gov, then click Forms & Publications, then Publications, then Bulletins, then 100 Series-General Information and, finally, Bulletin 100.39 Or, information can be found at tinyurl.com/2b92azcf about the tax deduction.
