This news release was originally published by the New Mexico Department of Taxation and Revenue on Oct. 31, 2022.
SANTA FE—The Taxation and Revenue Department has published a new tax bulletin providing gross receipts tax guidance for companies that facilitate lodgings, accommodations and vacation rentals, and for the owners of those properties.
Generally, companies that facilitate such rentals, known as “marketplace providers,” are required to pay gross receipts tax on the receipts for both the rental as well as their service fee. The property owner also reports the receipts for the rental but may deduct those receipts if the tax is being remitted to the Department by the marketplace provider.
A more detailed explanation, and pertinent examples, are available in the new publication, Tax Bulletin 200.37. The bulletin is available in the “publications” folder on the Forms & Publications page at tax.newmexico.gov.
“The travel industry has undergone tremendous change in recent years, with many new players. We hope this new publication will help everyone understand their gross receipts tax obligations and make it easier for them to comply,” said Taxation and Revenue Secretary Stephanie Schardin Clarke.
“I appreciate the efforts of the Department of Taxation and Revenue in working with us to provide clarity regarding gross receipts tax and marketplace providers should help bring about more fairness to New Mexico’s lodging sector,” Tourism Secretary Jen Paul Schroer said.