Gross Receipts Tax Rates & Local Goverment Distributions
Gross Receipts Tax Rates
Although the gross receipts tax is imposed on businesses, it is common for a business to pass the gross receipts tax on to the purchaser either by separately stating it on the invoice or by combining the tax with the selling price.
The gross receipts tax rate imposed by the State of New Mexico is 5.125%, then, depending on the location of the business, a local-government gross receipts tax rate may be added. Within the city limits of Hobbs, the effective rate is 6.8125%. Hobbs and other municipalities in Lea County are among the very few municipal governments whose effective GRT rates are still less than 7 percent. The total GRT rate of some cities in New Mexico are as high as 8.6875%.
Changes to the tax rates may occur twice a year in January or July. The state Taxation and Revenue Department posts new tax rate schedules online and in the CRS-1 Filer's Kit. Always check the current Gross Receipts Tax Rate Schedule to see if the rate for your business location(s) has changed.
Local Government Distributions
The business pays the total gross receipts tax to the state, which then distributes the counties' and municipalities' portions to them. Tax collections are distributed the second month after the business activity, or accrual, month.
The Hobbs Chamber’s leading indicator of commercial vitality is the state’s local government distribution of gross receipts taxes to the City of Hobbs. To view a history of these distributions, as well as those derived from business activity in unincorporated Lea County, see the links below.
- Hobbs Local Government Distributions
- Lea County (Remaining Unincorporated Area) Local Government Distributions
To view details of gross receipts taxes and resulting local government distributions, visit www.tax.newmexico.gov.