- Sales of tangible personal property delivered in New Mexico
- Services used or consumed in New Mexico
- Licenses and leases of real property sourced to New Mexico
- Only taxable gross receipts count toward the threshold; exempt and deductible receipts are excluded
- Receipts that are exempt or deductible under New Mexico GRT law
- Marketplace seller receipts where the marketplace provider collects GRT on the business's behalf
Affiliate Nexus
New Mexico addresses affiliate nexus at the regulation level. Under NMAC §3.2.1.12, when a parent corporation and its wholly owned subsidiary carry on activity in New Mexico together, both entities are considered "engaging in business" and subject to GRT, even if only one entity has a direct presence in the state. The regulation does not require shared customers, shared branding, or market-maintenance activities. The combined in-state activity of affiliated entities is itself sufficient to establish the obligation for both.
Physical Nexus
A business has physical nexus in New Mexico when it maintains any of the following connections to the state. An office, store, or other business location in New Mexico establishes nexus, as does storing property or inventory in the state. The presence of any employee in New Mexico creates nexus, and the same applies to a contracted salesperson or agent operating on the business's behalf in the state. Leased equipment actively being used in New Mexico also triggers nexus. The performance of services in New Mexico establishes nexus regardless of where the business is incorporated or headquartered. Transportation of property into New Mexico using the business's own vehicles creates nexus, as does the licensing of intangible property, including software, for use in New Mexico.
Trailing Nexus
New Mexico has no automatic trailing nexus rule. When a business's taxable gross receipts fall below $100,000 in a prior calendar year and no physical presence exists in the state, the GRT account does not close automatically. Closure requires a proactive request submitted on a Department-prescribed form, and filing and remittance obligations continue until the account is formally closed.
