On July 1 New Mexico began forcing online consumers to pay gross receipts taxes. While the Rio Grande Foundation has never supported such a policy we were resigned to the fact that New Mexico’s voracious policymakers would choose to unlock this revenue source. Currently the tax is 5.125% which is the Statewide rate. Local GRT rates will be tacked on starting in 2021.
Of course online sales themselves are not the only cost of buying things online, there are shipping costs to consider. And, as this article from Avalara notes (and the map below illustrates) New Mexico is one of the States which charges taxes on the shipping component of online sales.
So, next time you make that purchase online and wonder why it costs so much more, thank the Legislature and Gov.