NMSA 1978, § 7-9-4 — 7-9-4

Imposition and rate of tax; denomination as "gross receipts
tax".

# A.

For the privilege of engaging in business, an excise tax equal to the following
percentages of gross receipts is imposed on any person engaging in business in New
Mexico:
(1) prior to July 1, 2023, five percent; and
(2) beginning July 1, 2023, four and seven-eighths percent, except as
provided in Subsection C of this section.

# B.

The tax imposed by this section shall be referred to as the "gross receipts tax".

# C.

If, for any single fiscal year occurring after fiscal year 2025 and prior to fiscal year
2030, gross receipts tax revenues are less than ninety-five percent of the gross receipts
tax revenues for the previous fiscal year, as determined by the secretary of finance and
administration, the rate of the gross receipts tax shall be five and one-eighth percent
beginning on the July 1 following the determination made by the secretary of finance
and administration.

# D.

On or before February 1 of each year, until the rate of the gross receipts tax is
adjusted to five and one-eighth percent pursuant to Subsection C of this section, the
secretary of finance and administration shall make a determination for the purposes of
Subsection C of this section. If the rate of tax is adjusted pursuant to that subsection,
the secretary shall certify to the secretary of taxation and revenue that the rate of the
gross receipts tax shall be five and one-eighth percent, effective on the following July 1.

# E.

As used in this section, "gross receipts tax revenues" means the net receipts
attributable to the gross receipts tax and distributed to the general fund.