The New Mexico Society of Association Executives is delighted to host New Mexico Taxation and Revenue Secretary Stephanie Schardin-Clarke and Deputy Secretary Emily Oster to our May Policy Forum. The goal of the policy forum is to educate association executives and government affairs professionals about two significant tax policy changes that take effect in New Mexico on July 1, 2021, which will affect almost every business in New Mexico. 

First, the Taxation and Revenue Department is redesigning its Combined Reporting System (CRS) to create separate returns for withholding, gross receipts, and compensating taxes. he first phase of the project, expected to be complete in July 2021, will create forms that are targeted to the needs of different taxpayers and make it easier for them to manage their accounts. It also will increase internal automation and expedite the processing of refunds. 

Second, a new law and regulations will take affect governing how businesses report their Gross Receipts Taxes. Most taxpayers now pay the GRT rate for the location of their business, and retail operations will continue to do so for most sales completed at their business locations. Also, some providers of professional services will continue to calculate tax using their place of business after July 1, and special rules will also apply to construction services, transportation network companies, and sales and leases of real estate.