Reseller tax guide

New Mexico resale certificate and sales tax for resellers

A summary of what the sources listed on this page say about New Mexico: its permit and resale certificate, buying inventory for resale, and refunds of sales tax paid on inventory. General information only.

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Not tax advice. General information only: not tax, legal, or financial advice. Tax rates, forms, and rules change and vary by state, locality, and your situation. Confirm with the tax agency or a qualified tax professional before relying on it. Strooply is software from The Stroop LLC. It is not a certified public accounting firm, tax advisory service, enrolled agent or law firm, and nothing on this page creates a professional relationship with you. The full disclaimer and limits of liability are in the Terms of Service. By using this page, you agree to those terms. See something wrong? Report an error.

Last reviewed

Every fact on this page comes from the sources listed below, as they read on the review date. Where a source did not say something, we leave it out. Sources can change after that date.

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At a glance

New Mexico quick facts

What the sources listed below say. Rules change, and how they apply depends on the facts of each case.

State base sales tax rate
4.875%[5]
Resale certificate
NTTC (Nontaxable Transaction Certificate)[5]
Certificate expiry (as listed)
No expiry listed in the source[5]
Permit or registration
New Mexico Business Tax Identification Number (gross receipts tax registration)[35]
Cost of the permit
Free (the department says there is no fee to register)[3]
Online application offered
Yes[3]
Where to apply
State application page[3]
Certificate form
State certificate form[1]

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Permit and certificate

What the state says about its permit and resale certificate

The state calls the registration associated with buying for resale and collecting tax a New Mexico Business Tax Identification Number (gross receipts tax registration).[35] The state says the cost is: Free (the department says there is no fee to register).[3] The state says it offers an online application.[3] State application page.[3]

The resale certificate the state lists is NTTC (Nontaxable Transaction Certificate). The source cited lists no expiry.[5] State certificate form.[1]

Sourcing

What the state says about buying inventory for resale

Multistate certificates

  • The state says it accepts the Multistate Tax Commission uniform certificate.[14]

Out-of-state buyers

The department says other states' resale certificates are not valid in New Mexico. Out-of-state buyers not required to register there may use a Type OSB NTTC, the MTC certificate or, for buyers from certain border states, a Border State certificate.[12]

Other points the sources mention

  • New Mexico taxes the seller's gross receipts, and a seller may pass the amount to the customer. A seller deducts receipts from a sale for resale by taking a Nontaxable Transaction Certificate (Type 2 covers resale), and a properly executed NTTC accepted in good faith is conclusive evidence of the deduction.[12]
  • According to the department, the buyer needs a Business Tax Identification Number, then obtains and executes NTTCs in the Taxpayer Access Point. Type 2 and Type 5 are executed immediately, and one NTTC from a customer covers all transactions of the same type.[12]
  • For many deductions the department also accepts alternative evidence instead of an NTTC. It says its FYI-204 publication describes the details.[12]
  • The department says vendors at a special event need a New Mexico Business Tax Identification Number and file and pay by the 25th day of the month following the event, or in their normally scheduled month based on filing status.[6]
Refunds

What the state says about refunds of sales tax paid on inventory

Some states let a purchaser request a refund of sales tax paid on items bought for resale, and some direct the request to the seller. Whether and how that applies depends on the facts of each purchase. This section reports what the sources say for New Mexico. This page could not confirm whether a purchaser who paid sales tax to a seller can file directly. The state tax agency can say.[7]

Who files, per the state
Not confirmed on this page[7]
Refund form named by the state
Form RPD-41071 (Application for Tax Refund)[7]
How the state says to submit
Amended return for the overpaid period, followed by Form RPD-41071 with supporting documentation[7]
Time limit the state describes
Generally 3 years[7]
Note from the source. New Mexico has a gross receipts tax levied on sellers rather than a sales tax charged to buyers by law. The total rate combines state, county and municipal rates.[7]

Gross receipts tax is levied on the seller, who may pass the amount to the customer. The base rate is the state portion of the total, and county and municipal rates add to it. Refund applications run up to three years after the end of the year in which the payment was due. The Legislature removed the expiration date for paper NTTCs of the 1992 Series, so those remain valid.[7]

Illustration

Illustration: the New Mexico state base rate applied to an amount you enter

Enter an amount to see an illustration.

Illustration only. It applies the 4.875% state base rate to the amount entered, and assumes that amount is before tax. It leaves out local taxes, exemptions and every other rule, which can change the result. It is an estimate for illustration, not a tax calculation or a prediction of any amount owed, deductible or refundable.

Not tax advice. Last reviewed . Confirm with the state agency or a qualified tax professional. Report an error

Keep each purchase receipt linked to the items it covers

Strooply is an app for eBay resellers that identifies items from photos, shows live comps and sold-price estimates, drafts eBay listings for your review, and tracks costs and profit.

Receipt scanning, on Pro and Team plans, links each purchase receipt to the items it covers, with the tax shown on the receipt. It can misread prices, dates or line items.

Strooply is record-keeping software. It does not prepare or file tax returns, refund claims, or other filings, it is not a tax preparer, and its figures are estimates to check against your own records.

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FAQ

Common questions and what the sources say

Does New Mexico have a sales tax?

New Mexico has a gross receipts tax, and the legal liability for it is placed on sellers and lessors, who may charge the amount to the customer. The department says the total rate combines the rates imposed by the state, counties and municipalities, so it varies by location.[15]

How do I get a resale certificate in New Mexico?

The department's steps are registering with the Taxation and Revenue Department for a Business Tax Identification Number (no fee, per the department), then obtaining a Type 2 Nontaxable Transaction Certificate through the Taxpayer Access Point. The department says Type 2 and Type 5 certificates are executed immediately.[123]

Does a New Mexico NTTC expire?

The department says the Legislature removed the expiration date for paper NTTCs of the 1992 Series, so executed Series 1992 certificates remain valid. Paper NTTCs are requested with Form ACD-31050, with a limit of five per application.[1]

Can I use my out-of-state resale certificate in New Mexico?

The department says resale certificates issued by other states are not valid in New Mexico. In place of a Type 2 NTTC, customers not required to register with the department may be able to use an MTC certificate or, for buyers from certain border states, a Border State certificate, or a Type OSB NTTC that the New Mexico seller obtains for them.[124]

Not tax advice. Last reviewed . Confirm with the state agency or a qualified tax professional. Report an error

Sources

Where these facts come from

Each number in square brackets on this page matches an entry below. Check a source itself for its current wording.

  1. NM Taxation and Revenue: Non-Taxable Transaction Certificates (NTTC), www.tax.newmexico.gov/businesses/non-taxable-transaction-certificates-nttc/
  2. NM Taxation and Revenue: FYI-204 Nontaxable Transaction Certificates, realfile.tax.newmexico.gov/FYI-204.pdf
  3. NM Taxation and Revenue: Who must register a business, www.tax.newmexico.gov/businesses/who-must-register-a-business/
  4. Multistate Tax Commission: Uniform Sales and Use Tax Resale Certificate (state chart and notes), www.mtc.gov/wp-content/uploads/2023/01/Unif-Resale-Cert-revised-10-14-22.pdf
  5. NM Taxation and Revenue: FYI-105 Gross Receipts and Compensating Taxes, realfile.tax.newmexico.gov/FYI-105.pdf
  6. NM Taxation and Revenue: Special Events and Vendors, www.tax.newmexico.gov/businesses/special-events-and-vendors/
  7. Form RPD-41071 (Application for Tax Refund), state refund form, www.tax.newmexico.gov/forms-publications/
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