Sales/Use Tax New Mexico: New law clarifies use tax nexus; generally increases tax rate

S.B. 10, signed by gov. 3/24/10 with partial vetoes. Effective July 1, 2010, new law clarifies nexus regarding certain state compensating (use) tax transactions by stating that tangible property "acquired as the result of a transaction with a person located outside this state that would have been subject to the gross receipts tax had the tangible personal property been acquired from a person with nexus with New Mexico" is subject to New Mexico's compensating tax.

The law also generally increases the state sales/use tax rate from 5% to 5.125%.