Doing Business in Rio Rancho

Taxation

Gross Receipts Tax

The portion of Rio Rancho laying in Sandoval County has gross receipts tax rate is 6.6875%, effective January 1, 2007 through June 30, 2008. Quail Ranch, also part of the City of Rio Rancho, lay in Bernalillo County and has a gross receipt tax rate of 7.125%. The gross receipts tax is a tax on persons engaged in business in New Mexico for the privilege of doing business in New Mexico. The tax is imposed on the gross receipts of persons who:

1. Sell Property in New Mexico: Property includes real property; tangible personal property, including electricity and manufactured homes; and certain intangible property -- licenses, franchises, patents, trademarks and copyrights.

2. Perform Services in New Mexico: Service includes construction activities and all construction materials that will become part of the construction project

3. Lease Property Employed in New Mexico: Granting a license to use property is considered a sale of property and not a lease

4. Sell Research and Development Services:  performed outside New Mexico the product of which is initially used in New Mexico

The total rate is a combination of the rates imposed by: the state, counties, and municipalities. The total gross receipts tax is paid to the State of New Mexico. The state keeps its portion and distributes the appropriate portions to the counties and municipalities. The state's portion of the gross receipts tax, which is also the largest portion of the tax, is determined by state law. Changes to the state rate occur no more than once a year, usually in July.

To view or download a Gross Receipts Tax Rate Schedule, click here.

For more information, see NMTRD free publication Gross Receipts and Compensating Taxes: An Overview (FYI-105) available for download at www.state.nm.us/tax.