Adding insult to injury: New Mexico taxes shipping of online sales

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.

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2 Replies to “Adding insult to injury: New Mexico taxes shipping of online sales”

  1. Paul, I think that the new NM internet sales tax follows the SD statute (that was argued in front of the Supremes) and requires sales of at least $100,000 in a state before the vendor is subject to the tax. Last week ,on an Amazon order I placed, the portion that was shipped by Amazon added the full tax but the portion that was sent by another vendor charged no tax. I suspect that a lot of buyers will seek out non Amazon vendors to avoid the tax.

  2. What did New Mexico think it would accomplish by adding local GRT to internet sales? So now, New Mexicans will simply seek out vendors who aren’t subjected to this typically draconian…..err “democratic” governor we are truly blessed with (sic). People stop voting for these clowns that promise you a mansion and send you a poorly printed picture of one instead. You should pay careful attention to the Democrats currently in office (Yes Brandon, that means you too). To put a tax like this in the middle of an economic downturn due to high fuel costs, high inflation, massive costs for food and other necessities, and supply and logistic issues that cause shortages, should tell you of the job “Democrats” are doing. Does this sound right for New Mexico? Giving you $500 dollars to combat the cost of fuel? When you spend thousands more than that? Cutting a dismal .25 percent off the GRT? But now adding local GRT to your bill? Your not getting a thing people!!! You are getting screwed!!!!

    Send a message to this hopeless, witless mess of a governor who has done nothing but hide her hand behind her back, throw a few bucks at you, and hope you will vote for her, because it is the “woke” thing to do. Send her packing and give New Mexico a bright future without Democrats taxing you from one end, and stealing it from the other. We are STILL 50th in education, if that is any clue to what you will get with 4 more years of “Good Job Grisham”.

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