Quick Answer
Livestock sales in New Mexico are subject to gross receipts taxes, as well as state and local property taxes, but sales tax is exempt for livestock sales under the New Mexico Gross Receipts and Compensating Tax Act. The state tax rate is 5.125% for gross receipts taxes, and local tax rates vary.
Understanding State Taxes on Livestock Sales in New Mexico
Livestock sales in New Mexico are subject to gross receipts taxes, which are levied on the gross amount received from the sale of livestock. The state tax rate is 5.125%, and local tax rates vary. For example, in Santa Fe County, the gross receipts tax rate is 6.875% and in Bernalillo County, it is 6.382%.
Property Taxes on Livestock in New Mexico
In addition to gross receipts taxes, property taxes apply to livestock in New Mexico. Property taxes are calculated based on the assessed value of the livestock, which is typically 50% of the animal’s market value. For example, if you sell a cow for $1,500, the property tax on that animal would be 50% of $1,500, which is $750. The property tax rate in New Mexico ranges from 0.25% to 1.5% depending on the county. In Santa Fe County, the property tax rate is 0.48%.
Exemptions and Exceptions
Some livestock sales may be exempt from taxes in New Mexico. For example, sales of livestock to another farmer or rancher for breeding purposes may be exempt from gross receipts taxes. Additionally, if you’re selling livestock at an auction, the sale may be exempt from taxes if the auction is held on a licensed auction site. However, these exemptions and exceptions require specific documentation and verification, so it’s essential to consult with the New Mexico Taxation and Revenue Department for guidance on specific tax situations.
Find more answers
Browse the full Q&A library by topic, or jump back to the topic this question belongs to.