Article
Gross receipts tax deduction for New Mexico food and beverage businesses
April 19, 2021 · Authored by Mo Huda
Qualifying New Mexico food and beverage establishments may claim a temporary gross receipts tax (GRT) deduction on sales of food and beverages from March 1, 2021, through July 1, 2021.
New Mexico Senate Bill one (SB1) allows qualified entities the option to charge GRT and keep the funds as a stimulus incentive, or simply not charge customers the tax for the qualified period.
Establishments can receive the temporary GRT deduction on sales of prepared food or nonpackaged beverages — alcoholic or nonalcoholic — that are:
- Served at the establishment for immediate consumption
- Picked up by customers
- Delivered to customers for immediate consumption
New Mexico Senate Bill one (SB1) allows qualified entities the option to charge GRT and keep the funds as a stimulus incentive, or simply not charge customers the tax for the qualified period.
Qualified establishments
The following establishments and businesses are eligible for the temporary deduction as it relates to the sale of food and nonpackaged beverages.
- Restaurants that don’t serve fast food
- Mobile food services with a permit
- Bars or licensed dispensers where alcoholic beverages are prepared and served for on-premise consumption
- Wineries and winegrowers
- Licensed craft distillers
New Mexico tax credits to help increase cash flow for your business
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.