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In other words, Software-as-a-Service as a cloud-computing program that is only accessed remotely without delivery of a tangible media and does not include the user taking possession of the program is not subject to sales or use tax.
Optional maintenance contracts provide prepaid coverage for maintaining a vehicle. These contracts include taxable items and nontaxable repair labor for one price. Examples include: Oil changes.
Traditional Goods or ServicesPrescription medicine, groceries, and gasoline are all tax-exempt. New Mexico is unique in the fact that the state requires gross receipts tax to be paid on all services.
Generally speaking, sales and leases of goods and other property, both tangible and intangible, are taxable. Unlike many other states, sales and performances of most services are taxable in New Mexico. Most tangible goods are also taxable with the exception of grocery items.
In New Mexico, receipts from the sale or license of prewritten software delivered electronically are subject to gross receipts tax. New Mexico defines SaaS and cloud computing as services, making them subject to the state's taxes.
Generally speaking, sales and leases of goods and other property, both tangible and intangible, are taxable. Unlike many other states, sales and performances of most services are taxable in New Mexico.
The tax is imposed on the gross receipts of businesses or people who sell property, perform services, lease or license property or license a franchise in New Mexico. The same goes for those who sell research and development services performed outside New Mexico when the resulting product is initially used here.
The definition of SaaS sometimes falls in the gray area of digital service. New Mexico does tax SaaS products, but check the website to confirm that the definition firmly applies to your service.
When the service is performed in New Mexico, it is taxable. In general, maintenance contracts are either taxable at the time of sale or taxable at the time of service.
Traditional Goods or ServicesPrescription medicine, groceries, and gasoline are all tax-exempt. New Mexico is unique in the fact that the state requires gross receipts tax to be paid on all services.