Position #2 Gross Receipts Tax – Destination Based Sourcing
The New Mexico state legislature passed Gross Receipts Tax reform during the 2019 session. The law now includes a provision to change the tax rate from the source (the business location) to the destination (the location where the products or services are delivered or rendered). This change places an unwarranted administrative burden on small businesses thus raising the cost of doing business; makes NM businesses less competitive; and is a deterrent to attracting small and woman-owned business to our state. NAWBO NM recommends the New Mexico Legislature continue the work to simplify current gross receipts reporting; is willing to engage in testimony to review impact; and be a resource to draft amendments that alleviate currently imposed negative and unduly impacts on small businesses.