{"id":375118,"date":"2016-03-31T21:36:01","date_gmt":"2016-04-01T02:36:01","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/new-mexico-law\/new-mexico-consumer-tax-laws.html"},"modified":"2016-06-20T19:51:11","modified_gmt":"2016-06-21T00:51:11","slug":"new-mexico-consumer-tax-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/new-mexico-law\/new-mexico-consumer-tax-laws.html","title":{"rendered":"New Mexico Consumer Tax Laws"},"content":{"rendered":"\n
\n \n
\n

New Mexico Consumer Tax Laws<\/h1>\n
\n
\n

Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last reviewed\n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Even if no one likes paying taxes, to have a functioning society with everything from public school teachers to police, almost everyone must pay taxes. In addition to personal income taxes<\/a> and property taxes, individuals in New Mexico must pay a variety of other consumer taxes. These taxes can be general taxes to raise money, like sales or use taxes, or \u201cvice\u201d taxes on things like alcohol, cigarettes, and gas that raise money and also try to deter individuals from buying those times.<\/p>\n

Who Pays Consumer Taxes?<\/h2>\n

Pretty much everyone does. One of least successful arguments against undocumented persons<\/a> or \u201cillegal aliens\u201d in the U.S. is that they don\u2019t pay taxes. However, as you can see form all of the taxes below, if someone is living in New Mexico, they\u2019re probably paying taxes most days.<\/p>\n

The following chart lists and explains the main consumer tax laws<\/a> in New Mexico.<\/p>\n\n
Sales Tax<\/b><\/td>\nThe state sales tax or \u201cgross receipts<\/a>\u201d tax is 5.125%, but is as much as 8.6875% with additional county and city sales taxes in some locations. Not that online purchases may not be taxed, if the seller has no connection to the state, such as Amazon<\/a>.<\/td>\n<\/tr>
Use tax<\/b><\/td>\nThe state \u201ccompensating tax<\/a>\u201d covers items that would\u2019ve been taxed under the sales or gross receipts tax, but weren\u2019t because they were bought out of state or acquired some other way where they weren\u2019t initially taxed. This is also called a usage tax or excise tax. The rate is 5.125% on certain property used in New Mexico and 5% on certain services used in New Mexico.<\/td>\n<\/tr>
Gas Tax<\/b><\/td>\nNew Mexico\u2019s gas tax is imposed on gas distributors, the current rate is $.17 per gallon<\/a>.<\/td>\n<\/tr>
Liquor Tax<\/b><\/td>\nThe liquor tax rate<\/a> varies based on the type of alcohol being taxed, as follows:
\n
Cigarette Tax<\/b><\/td>\nCigarettes are taxed $1.66 per pack<\/a> of 5, 10, or 20 cigarettes or $2.075 for packs of 25. The cigarette tax funds go to the University of New Mexico medical school cancer center, to the finance authority for various activities including rural county cancer treatment, and to the general fund.<\/td>\n<\/tr>
Gambling Tax<\/b><\/td>\nGaming is taxed at different rates based on whether the operator is a non-profit organization (10% tax<\/a>) or other licensed operator (26%). Racetracks pay 20%<\/a> of the net take to purses for the race track. For more information, see the New Mexico Gambling Laws<\/a> article.<\/td>\n<\/tr><\/tbody><\/table>\n

Getting Help with Taxes<\/h2>\n

Tax law is quite complicated. If you have questions about what you should be paying and whether you\u2019re eligible for a tax exemption or credit, it\u2019s best to talk with a tax expert, especially if you\u2019re accused of tax evasion. To learn more, speak to your local experienced tax lawyer<\/a>.<\/p>\n

Note:<\/i><\/b> State laws change regularly, so please conduct your own legal research or contact a lawyer to confirm the accuracy of these tax laws. <\/i><\/p>\n

Research the Law<\/h2>\n