New Mexico Gross Receipts Tax

SantaFeOpera
New Member
1 0 1

New Mexico legislation changed NM from a source based taxing jurisdiction to a destination based taxing jurisdiction effective 7/1/21 for its Gross Receipts tax - basically sales tax. I have a case in with Shopify regarding this change, but for NM Shopify continues to charge the GRT based on the shop's location, rather than the shipping destination. On top of that, Shopify is charging an incorrect rate for the shop's location. The shop is located in the remainder of Santa Fe county as its taxing jurisdiction. However, because the name of the city the shop is located in is Santa Fe, then Shopify is charging the city of Santa Fe taxing jurisdiction rate on all orders shipped to New Mexico. That is 100% incorrect. How do I get Shopify to fix this? I was told yesterday one can only 'speak' with Shopify's tax department via email, at their behest. Appreciate all comments and suggestions. We want to be in compliance. 

Accounting Manager The Santa Fe Opera

Suzie1
New Member
5 0 0

I am having the same problem!

 

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Suzie1
New Member
5 0 0

I have had a website for years and have charged NM sales tax without problem.  Now I am having a terrible time figuring out how to configure all the municipalities on Shopify.  Is there someone who can help us?

 
Over 10 days ago, a customer placed an order and it charged her our city’s tax rate, not hers which is 250 miles away. I asked FirstWireApp to enter all of the correct tax rates for New Mexico into Shopify, but it still only has Bloomfield’s rate and Shopify will not let us manually enter in more than one tax rate for New Mexico.  
 
I just tried to reenter this order on Shopify and it still is charging Bloomfield Tax, not Rio Rancho’s tax.  It will not let me change the tax rate either.  See the little screen shots below the order.
 
(Rio Rancho Sandoval 87144 State: 5.125% County: 0.5% Municipal: 2.063% Tax Policy: Tax Shipping, Tax Shipping & Handling)
 
There should be a place to upload an excel sheet or something to add all the municipalities, counties and tax rates on Shopify. 
 
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New Mexico is an origin state. New Mexico doesn't actually have a sales tax, it has a gross receipts tax that is often passed on by merchants.

Gross receipts tax nexus in New Mexico can be triggered by a number of factors. The most common include having a physical location (office, warehouse, plant, etc.) within the state, having employees within the state, or conducting marketing activities within the state.

New Mexico is attempting to pass legislation that would compel merchants located outside of New Mexico, who are selling into New Mexico, to pay gross receipts tax on their New Mexico sales.

Shipping is taxable.

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