New Mexico Tax And Revenue In 2023
Introduction
New Mexico is one of the most diverse states in the United States. It is home to a wide variety of cultures and landscapes. As of 2023, the state of New Mexico is continuing to grow and develop. With the growth comes an increased need to ensure that the state's tax and revenue systems remain up to date and functioning properly. This article will provide an overview of the current state of New Mexico's tax and revenue systems.
Overview of New Mexico's Tax and Revenue Systems
New Mexico's tax and revenue systems are complex and can be difficult to understand. The state has both a gross receipts tax (GRT) and a personal income tax. These taxes are collected by the New Mexico Taxation and Revenue Department (TRD). In addition to the GRT and personal income tax, the state also collects use taxes, property taxes, and excise taxes. The TRD administers the collection of taxes and revenue in New Mexico.
Gross Receipts Tax (GRT)
The GRT is a consumption tax that is imposed on goods and services sold in the state of New Mexico. It is also sometimes referred to as a gross sales tax or a consumption tax. The GRT rate varies by county and can range from 0.055% to 8.4375%. The state also allows local governments to impose their own taxes on top of the GRT. For example, the city of Albuquerque imposes an additional 0.5% GRT.
Personal Income Tax (PIT)
The PIT is a progressive tax that is imposed on the taxable income of individuals and businesses. The rates range from 1.7% to 4.9% depending on the taxpayer’s income. The PIT is administered by the TRD and the state has an online system for filing, paying, and tracking individual income tax returns.
Use Tax
The use tax is a tax imposed on goods and services that are purchased from outside of the state of New Mexico. This tax is intended to level the playing field between in-state and out-of-state businesses. The use tax rate is the same as the GRT rate. The use tax is administered by the TRD and is collected from taxpayers on their income tax returns.
Property Tax
Property taxes are imposed on real and personal property in the state of New Mexico. The amount of the tax is determined by the county in which the property is located. The tax rate can range from 0.05% to 1.35%. The property tax is administered by the county assessor and the revenue is used to fund local government services.
Excise Tax
Excise taxes are taxes imposed on specific goods and services. These taxes are imposed by the state and are intended to raise revenue for specific purposes. Examples of excise taxes in New Mexico include taxes on gasoline and cigarettes. The excise tax is administered by the TRD and the revenue is used to fund various state programs.
Conclusion
New Mexico's tax and revenue systems are complex and can be difficult to understand. The state has a variety of taxes that are imposed on individuals and businesses. The taxes are administered by the New Mexico Taxation and Revenue Department (TRD) and the revenue is used to fund various state programs. It is important to stay up to date on the latest changes to the state's tax and revenue systems in order to ensure compliance.