To begin you have to ask yourself 3 questions…
DEFINITIONS
let’s first take a look at what each of these sale tax terms means so that you can understand how it pertains to Photographers in New Mexico.
These definitions are laid out below.
👉NEXUS
So, what’s nexus? The term “nexus” is used in tax law to describe a situation in which a business has a tax presence in a particular state. A nexus is basically a connection between the taxing authority and a business that must collect or pay the tax. It’s possible to have nexus in more than one state especially if you travel to another state to shoot. So you want to be sure you understand the laws of each state you work in.
👉SOURCE
The source indicates where the sales are taxed.
- Origin-sourced sales are taxed where the seller is located, so this is based on your zip code.
- Destination-sourced sales are taxed at the location where the buyer takes possession of the item sold.
Also, keep in mind if the client picks up tangible goods from your location or studio, this is the point where the transaction happens. If you mail or ship to the client, it will be by their zip, not yours.
👉PHYSICAL GOODS
Any physical products sold to a client, items you can touch and hold like prints, albums, frames, etc…
👉DIGITAL GOODS
These are digital items delivered electronically via telephone lines, over the internet, by email, or by another alternative form of non-physical transmission.
Beware of digital prints delivered on a physical device such as a thumb drive or CD as these are no longer digital and are now considered physical because you can touch them.
Services are anything needed to produce the end product, such as shooting, editing, culling, touchup, etc…
👉SERVICES
Services are anything needed to produce the end product, such as shooting, editing, culling, touchup, etc…
👉SHIPPING
This is any shipping charged by you to your client. Third parties such as album companies who dropship or online
galleries where clients can order prints will take care of their own shipping. But if you charge your client shipping,
this is where the shipping rules in this guide apply to you.
New Mexico Sales Tax for Photographers
Below are the sales tax requirements for Photographers in New Mexico broken out. You will find supporting links and resources at the bottom of this post.
New Mexico has a Gross Receipts Tax (GRT) Imposed on all businesses that do business in the state.
✅New Mexico Nexus
Every business with income is responsible to collect and submit Gross Receipts Tax (GRT)
✅New Mexico Source
New Mexico uses origin-based sales tax (GRT), which means sales tax should be collected based on where you, the seller, are located.
✅New Mexico Services
New Mexico charges a gross receipts tax on persons engaged in business in the state for the privilege of doing business in the state. Tax rates vary across the state from 5.125% to 8.8125%. The rate depends on your zip code, and it applies to the gross amount of your sales regardless of if it is a service, digital good, or physical good.
✅New Mexico Shipping
Shipping is included in taxable income for the gross receipts tax (GRT)
📆Monthly liability / Filing Frequency:
$200.00 + / Monthly
$66.67-199.99 / Semi-Annual
$0.00-66.66 / Annual
📆Monthly
Due last 25th of the following month
📆Quarterly
PERIOD/DUE
Q1 (JAN – MAR) / APR27
Q2 (APR – JUN) /JUL27
Q3 (JUL – SEP) / OCT26
Q4 (OCT – DEC) /JAN25*(Following year)
📆Semi-Annually
Q1 JAN-JUN / JUL27
Q2 JUL-DEC / JAN25* (Following year)
✨LINKS
⭐️LookUp Rates
⭐️New Mexico – Revenue & tax – Gross Receipts Tax
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