Under certain circumstances, persons selling property or a combination of property and service to someone engaged in business in New Mexico may be required to collect compensating tax. The seller must not owe gross receipts tax on the sales, and the buyer must use the property, or property and service, in New Mexico (Section 7-9-10 NMSA 1978). Here are some examples of common business activities that incur agency for out-of-state businesses:- Regularly soliciting orders in New Mexico;
– Advertising in New Mexico media or soliciting orders through programs broadcast by New Mexico radio, television, or cable television systems, or
– Maintaining a stock of goods in this state.
