How to use a New Mexico resale certificate
by March 3, 2024
Please note: This blog was originally published in 2021. It’s since been updated for accuracy and comprehensiveness.
When buying products with the intent to resell in the state of New Mexico, you can avoid paying sales tax on that purchase by presenting a valid New Mexico resale certificate.
Keep in mind that you should only use a resale certificate when you legitimately plan to resell, rent, or lease items – or use them as parts or ingredients in products for resale. Here’s what you need to know as a seller when using a New Mexico tax exemption certificate, or if one of your customers presents a resale certificate to you for a sales tax exemption.
How to obtain a New Mexico resale certificate
New Mexico does not require sellers to have a sales tax permit to use a resale certificate. For that reason, New Mexico has two different resale certificate forms. One for those registered with the state and one for sellers who are not.
If you have sales tax nexus in New Mexico and are registered with the state, you need to apply for a nontaxable transaction certificate (NTTC). You’ll need a valid CRS identification number to complete the form.
If you are not required to be registered with the state of New Mexico, you may fill out the Multistate Tax Commission’s Uniform Sales and Use Tax Certificate, or the Border States Uniform Sale for Resale Certificate (Form 60-0081).
You can find out more about New Mexico’s use of resale certificates by reading the New Mexico Taxation and Revenue Department’s information on nontaxable transactions and certificates.
If you are presented with a New Mexico resale certificate
You’re responsible for a few things when accepting a New Mexico resale certificate from a buyer. Failing to do any of these things and having a subsequent audit means that you’ll be the party on the hook for any fines and penalties. That said, the compliance steps are pretty easy.
- Make sure the resale certificate is properly completed – Check to ensure the New Mexico resale certificate is signed and includes the buyer’s New Mexico sales tax identification number.
- Verify it with the state – Here’s the link to check the validity of a New Mexico resale certificate. Then, under “Businesses,” select “Check CRS Status.” From there, enter CRS ID, zip code, and last 4 of SSN, FEIN, or ITIN. Here’s a guide to how you can verify retail sales certificates from every state.
Ready to say goodbye to sales tax management? Let TaxJar automate it for you.
