New Mexico Sales Tax on Services, Installation, etc New Mexico: Sales Tax Handbook

New Mexico:

What purchases are taxable in New Mexico?

The taxability of various transactions (like services and shipping) can vary from state to state, as do policies on subjects such as whether excise taxes or installation fees included in the purchase price are also subject sales tax. This reference is here to help answer your questions about what is and is not subject to the New Mexico sales tax.

Section 1: Taxability of Goods and Services

What transactions are generally subject to sales tax in New Mexico?


Are services subject to sales tax in New Mexico?

In New Mexico, services are taxable unless they are specifically exempted from taxation.

You can find a table describing the taxability of common types of services later on this page.

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Are shipping & handling subject to sales tax in New Mexico?

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Are drop shipments subject to sales tax in New Mexico?

"Drop shipping" refers to the common business practice in which a vendor, often in a different state, makes a sale of a product which is shipped to the end-user by a third party supplier hired by the initial vendor. In New Mexico, drop shipments are generally subject to state sales taxes.

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Section 2: Taxability of Various Items in New Mexico

This table shows the taxability of various goods and services in New Mexico. If you are interested in the sales tax on vehicle sales, see the car sales tax page instead. Scroll to view the full table, and click any category for more details.

Category Exemption Status
Amazon Purchases
Products on Amazon.com EXEMPT
Clothing
General Clothing TAXABLE
Food and Meals
Catering TAXABLE *
Grocery Food EXEMPT
Leases and Rentals
Motor Vehicles TAXABLE *
Tangible Media Property TAXABLE
Manufacturing and Machinery
Machinery TAXABLE *
Raw Materials EXEMPT
Utilities & Fuel TAXABLE
Medical Goods and Services
Medical Devices TAXABLE *
Medical Services TAXABLE *
Medicines TAXABLE
Newspapers and Magazines
Newspapers EXEMPT
Periodicals TAXABLE
Occasional Sales
General Occasional Sales EXEMPT *
Motor Vehicles EXEMPT *
Optional Maintenance Contracts
General Optional Maintenance Contracts TAXABLE
Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts EXEMPT
Pollution Control Equipment
General Pollution Control Equipment EXEMPT
Services
Janitorial Services TAXABLE
Transportation Services TAXABLE
Software and Digital Products
Canned Software - Delivered on Tangible Media TAXABLE
Canned Software - Downloaded TAXABLE
Custom Software - Delivered on Tangible Media TAXABLE
Custom Software - Downloaded TAXABLE
Customization of Canned Software TAXABLE
Digital Products TAXABLE
Trade-Ins
General Trade-Ins EXEMPT *
Vending Machine Sales
Food TAXABLE
Merchandise TAXABLE

* See notes in category taxability page for details



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** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/new-mexico/sales-tax-taxability