Municipal Annexations
From time to time a municipality finds it necessary to annex territory.
When it does so, there is a procedure to follow to begin receiving revenues from the annexed territory in a timely way. Please remember that new tax rates and location codes take effect on January 1 and July 1 of any calendar year. It is important to notify the Department by September 30 (for January publication) or March 31 (for July publication).
To help the Department to help you, here are the steps to follow:
TRD Notification
Any ordinance that consents to the annexation of any contiguous territory is to be filed with the respective county clerk. After filing with the county clerk, the municipal clerk is required to send a copy of the ordinance annexing the territory and the plat of the territory to the Department of Finance Administration and the Taxation and Revenue Department according to Section 3-7-17 NMSA 1978.
Effective Date
The annexation is complete if no land owners appeal the annexation to the county clerk within 30 days of filing the ordinance with the county clerk.
Implementation of Annexation
Any necessary changes to the Gross Receipts Tax Rate Schedule will be made, and the Audit and Compliance Division sends representatives to businesses in the annexed area to notify them of the change in the gross receipts tax and location code.