Gross Receipts Tax - City of Rio Rancho

Report
CRS-1
New Business Workshop
1
07/08/2011
“Taxes are the price we pay
for civilization.”
Justice Oliver Wendell Holmes, Jr.
2
Buying
an existing
business?
Be sure
they are in
good
standing
with the
State
Register
with NM
Taxation &
Revenue by
applying for
a CRS
Business
Tax ID
TO REPRESENT
CLIENT ON
BUSINESS
PERTAINING TO
TAXES
NOTIFY TAXATION
AND REVENUE DEPT
OF AUTHORIZED
REPRESENTATIVE
Where do I
Report
Changes?
7
CRS-1 Filer’s Kit Contents
Front cover – Announcements
Due Dates
Department Office
Locations/Contacts
GRT Rate Schedule
CRS-1 Form Written Instructions
CRS-1 Report Forms
Other Forms & Information
Filing Period Requirements
You may choose your filing status
as long as you do not report an
AVERAGE of $200.00 or more in
total tax per month. This will
require you to file MONTHLY.
If you owe $25,000 or more, you
must make arrangements to file
and pay by EFT.
11
Business Location Determines Tax Rate
 If you are in the construction business, your tax
rate is determined by the location of each
construction project.
 If you are located in a municipality within a
county, your tax rate is that of the municipality.
 If you are a craftsperson who sells at craft fairs
where you rent a booth, that is your location for
that period of time. You must use the
corresponding tax rate.
 Service businesses use their base tax rate from
their home or physical location.
13
14
Cr
s1
for
m
Gross Receipts Tax
Compensating Tax
Withholding Tax
Gross Receipts Tax
 Ten states have some variation of Gross
Receipts Tax.
 In most cases leads to “tax pyramiding”
(value added tax).
 Low rates, typically less than 1%.
 In New Mexico used as a replacement
for sales tax.
16
Gross Receipts Tax
 Unlike sales tax – “seller is responsible
to file reports & pay over taxes”
 Tax for the privilege of doing business
 Apply to sale or lease of property and
services
 Prevalent practice – pass the tax to the
customer
Taxable, Exempt, and Deductible
Most
transactions in
NM are taxable
unless specified
by an act of
legislature to be
deductible or
exempt.
What is the difference
between
exemptions &
deductions?
Exemption
Frees the seller of the
requirement to report
receipts from the exempted
type of activity.
Deduction
Requires the seller to report the receipts, but allows
them to deduct the receipts before calculating tax
liability.
The Department requires taxpayers to retain
substantiation in their records when claiming a
deduction from gross receipts.
Transactions involving
Non-Taxable Transaction Certificates (NTTCs)
Non-Taxable
Transaction
Certificates
(NTTC)
21
NMSA 1978 Statute 7-9-43
Nontaxable Transaction Certificate
and Other Evidence Required to Entitle
Persons to Deductions.
22
•Issued by the Buyer/Lessee to the Seller/Lessor
•For the purchase or lease of material and/or
services for resale
•Buyer/Lessee does not pay Gross Receipts Tax
on purchase
•Creates deduction for Seller/Lessor
•Can be generated online, and printed if
necessary
23
NTTC-NET
The Taxation and Revenue Department has
developed NTTC-NET, a paperless system
on the web, to expedite the processing of
Nontaxable Transaction Certificates (NTTCs).
Taxpayers can apply for, execute and request
additional NTTCs by logging on to NTTCNET through www.tax.newmexico.gov
ACTIVE SINCE JULY 1, 2005
Get online and get out of line!
Types of NTTCs








Type 2 – Purchase of tangibles for resale
Type 5 – Purchase of services for resale
Type 6 – For construction contractor’s materials and
services
Type 9 – For tangibles purchased by not-for-profit
(501c3) and governmental agencies
Type 10 – Available to persons that hold an interest in
a qualified generating facility
Type 15 – For tangibles purchased by qualified
federal contractors
Type 16 – For qualified Film Production companies
materials and services
OSB are not available online - Contact the District
office
26
OSB NTTC’S
 Type
OSB NTTCs are issued to
registered New Mexico sellers /
lessors to execute to Out-of-State
Buyers who are not registered with
the department.
 Will resell tangible personal
property outside of New Mexico.
New Mexico sellers may accept the Multijurisdiction Uniform
Sales and Use Tax Certificate (MTC) from out-of-state buyers
not required to register in New Mexico as documentation for
three types of deductions:
1. Receipts from sales of tangible personal property or licenses for
resale (Section 7-9-47);
2. Receipts from sales of tangible personal property to
manufacturers who will incorporate the property as an
ingredient or component part of the product the manufacturer
is in the business of making (Section 7-9-46); and
3. Receipts from services performed directly upon tangible
personal property a manufacturer is in the business of making,
or upon ingredient or component parts of that product (Section
7-9-75).
28
MTCs are issued by the multistate
tax commission or a state, other
than New Mexico, that is a
member of that organization. The
certificates may be obtained
through the commission’s web
site at:
www.mtc.gov
29
New Mexico sellers may accept the Border State Certificate
(BSC) from out-of-state buyers from Arizona, California,
Oklahoma, Texas, Utah and the United States of Mexico if the
buyers are not required to register with this Department and who:
1. Wish to buy goods for resale or incorporation as ingredients or
components of a
manufactured product, or
2. Wish to buy a manufacturing service that will be performed on
a manufactured product or
ingredient or component part thereof, and
3. Will transport the tangible personal property across state or
national boundaries.
30
For further information
regarding BSC’s, please contact
the Border States Caucus. The
web site for the Border States
Caucus is:
ww.borderstatescaucus.org
31
Compensating Tax
 Called “use tax” – “buyer pays”
 Protect New Mexico businesses from unfair




competition
5% of the value of service
5.125% of the value of property
Apply to out-of-state business purchase (supplies
& equipment for business use)
Apply to property or service acquired using a
NTTC and later used by buyer
Withholding Tax
Every employer who withholds a
portion of an employee’s wages for
payment of federal income tax
must withhold New Mexico
income tax.
Personal
Income Tax
& Gross
Receipts tax
“two
distinct tax
programs”
To make personal income tax
estimated payments use a PIT-ES
36
The CRS-1 LONG
FORM
is used for
businesses that have
more than 3 locations
or require more than
three lines to file.
Taxpayers using the
special M and F code
deduction require two
lines per location.
If Tax is
included in
Gross Receipts
you will need to
back out Gross
Receipts Tax
before entering
amount on
Column D
HOW TO “BACK OUT” GROSS RECEIPTS TAX
To “BACK OUT” tax from total receipts at the end of the report period, simply.................
DIVIDE total receipts including the tax for the report period, by 100 PLUS the applicable gross receipts
tax rate (i.e., if your business is in Albuquerque the tax rate is 7.00% and your gross receipts including
tax are $2,000.00 then divide by 107.00%). The result is your gross receipts without tax or $1,871.35.
( to be entered in Column D of CRS-1 form).
Example
STEP 1:
GROSS RECEIPTS (Including Tax)
$2,000.00
TAX RATE (Plus 100)
107.00%
EQUALS GROSS RECIPTS WITHOUT TAX $1,869.16
Divided By
Equals
Column “D”
STEP 2:
GROSS RECEIPTS WITHOUT TAX
TAX RATE
TAX DUE
Alb/Bernalillo
$1869.16
7.00%
$ 130.84
02-100 1869.16
Multiply By
Equals
Column “H”
1869.16
7.00
130.84
130.84
7 1 11
Taxpayer
130.84
12 31 11
02-123000-00-0
Taxpayer
222-8888
Owner
130.84
1-25-12
New E-Filing Changes
August, 2010 – All filers with tax payments
due over $20,000 were required to file monthly
returns online
January, 2011 – All filers with tax payments
due over $10,000 were required to file monthly
returns online
Beginning July, 2011 – All monthly filers
will be required to file online regardless of
amount due
See Publication FYI-108, Electronic Filing 39
Mandate
ELECTRONIC FILING
www.tax.newmexico.gov
Access to:
• NM WebFile
• NTTC-Net
• Taxpayer Access Point (TAP)
40
• CRS Filing
• PIT-Net
• Tri-Agency Filing
– Informational reports for Department of
Workforce Solutions, Workers’ Compensation
Administration
• Taxpayer Access Point (TAP)
– Business Registration
– Account Access
• Update of Selected Account Information
– Payments
• Assessment, Return or Estimated
41
Other Tax Programs















Cigarette Excise Tax
Tobacco Products Tax
Enhanced 911 (E911) Surcharge
Telecommunication Relay Services Surcharge (TRS)
Liquor Excise Tax
Local Liquor Tax
Fiduciary Tax
Coal/Uranium Conservation Tax
Severance Tax
Resource Excise Tax
Oil and Gas Withholding
Private Railroad Car Tax
Water Conservation Fee
Fuels
Commercial Vehicle
42
HI!
I’m from Taxation &
Revenue…
and I’m here to help!
43
Assistance from Taxation & Revenue
• District Office Customer Service Units (Walkins)
• District Office Taxpayer Assistance Units
(Revenue Agents)
• Call Center Bureau
• Auditors On-Call
• CPA Hotline
• Fraud Hotline
44
Contact Numbers
•
•
•
•
•
•
ABQ District Office – (505) 841-6200
ABQ Taxpayer Assist. – (505) 841-6626
Santa Fe District – (505) 827-0827
Roswell District – (575) 627-2900
Las Cruces District – (575) 524-6225
Call Center Bureau – (866) 285-2996
(505) 841-6352
• CPA Hotline – (505) 827-0929
• Fraud Hotline – (866) 457-6789
45

similar documents