What method do you use to determine the correct GRT (gross receipts tax) code and rate for a property you are listing? It is very easy to find this information directly from the regulating authority. Check out this video to learn more:
Hi… this is Tony, for the Taos County Association of REALTORS®, or TCAR, with a… How Do I Do This video.
A member recently asked… How do I find the correct GRT Code for a property I am listing for sale?
In New Mexico, the regulating authority for the establishment of, collection of, and distribution of GRT, or gross receipts tax, is the New Mexico Taxation and Revenue Department.
Let’s take a look at their FYI-200 information sheet… titled, “Your Business Location and the Appropriate Tax Rate”.
As you can see, for services selling real estate, the reporting location and associated tax rate, are based on the location of the real estate being sold.
This info sheet also states, that if you arrange for the lease of real property, the reporting location and associated tax rate, are based on the location of your business site, or office, and not based on the location of the leased property.
And finally, this info sheet states that for transactions on Tribal territory, where the Tribe, or Pueblo, has entered into a GRT cooperative agreement with the state of New Mexico, you are required to report gross receipts based on the Tribal location of the sale.
So to find the correct GRT Code for a property being listed for sale, you should use the Gross Receipts Location Code and Tax Rate Map, located on the New Mexico Taxation and Revenue website.
The easiest way to get there, is to go to the Taos County Association of REALTORS® website, and access the map through either the link under the Member Resources section, or under the Maps section, on the right hand side of the website.
Once on the New Mexico Taxation and Revenue website, and at the Gross Receipts Location Code and Tax Rate Map page, scroll down the page to the actual map section.
In most cases, you can enter the address for the property being listed, in the search box at the top of the map. This will zoom the map in to the exact location of the property being listed for sale.
If the search feature at the top right hand side of the map doesn’t work for your listed property, you can use the map like any other online map. You can hold your left click button down while panning and moving the map around, to manually locate the property you are looking for. And you can use the plus and minus buttons at the top left of the map, to zoom in and zoom out.
There are also options at the top left of the map to switch various layers on, or off, an option to change the view of the map, including an aerial view, an option to share the map, and an option to print the map.
Now let’s go take a look at the Gross Receipts Location Code and Tax Rate Map… located on the New Mexico Taxation and Revenue website.
Let’s go ahead and enter an address, to let the map take us to the location on the map. So let’s enter something like… 115 Siler Road, in Taos New Mexico.
Since it might be unclear about whether or not you are on the right property, you can click on the view options at the top left corner of the map, and select an aerial view option, like the Imagery Hybrid option. This option will retain the street names for reference.
Now let’s click on the map right next to the property’s location, to bring up the GRT Code and Rate for the property.
As you can see, the map shows that the correct GRT Code for this property, is either 20-915, or 20-916, depending on either Note 1 or Note 2 as applicable. These notes are included at the bottom of the pop up box with the GRT Code and Rate. If you are uncertain about which code applies, you may contact the New Mexico Taxation and Revenue office for clarification.
It should be noted that the GRT Code and Rate boundaries, are not necessarily tied to local town or neighborhood boundaries, as there may be areas where jurisdictions overlap, and where special cooperative agreements, have been put in place between the overlapping jurisdictions.
Also, looking around the map, you will see that there are many little pockets of areas within areas, that have different GRT Codes and Rates, than their surrounding area. There are even areas where the GRT Code and Rate, may be different for a property on the south side of the street, from that for a property on the north side of the street.
And there are areas that seem to conflict with common sense, but that have actual GRT area boundaries that one would not anticipate or expect… such as the El Valle de Los Ranchos Water & Sanitation District… GRT Codes 20-419 and 20-429… which extend all the way south to the Stakeout area, and north to Callejon Road, and even north of Este Es Road.
Let’s explore the New Mexico Taxation and Revenue map a little further, to look at other local areas and their associated GRT Codes…
As you can see… it is very important to get the correct GRT Code, directly from the map on the New Mexico Taxation and Revenue website, or by contacting their office, and not by guessing, or relying on any other information, for determining the correct Code and Rate.
I encourage you to explore the Taos County Association of REALTORS® website for more useful information and resources, that you can use for your business.
Additional Gross Receipts Tax (GRT) Resources
New Mexico Taxation & Revenue FYI-200 Information Sheet – Your Business Location and The Appropriate Tax Rate
New Mexico Taxation & Revenue FYI-105 Information Sheet – Gross Receipts & Compensating Taxes: An Overview
New Mexico Taxation & Revenue – Gross Receipts Location Code and Tax Rate Map
Taos Pueblo Boundary Map – https://www.taospueblo.org/images/cms/msd/Taos_Pueblo_Boundary_Map_091615.pdf
El Valle De Los Ranchos Water and Sanitation District Map – https://www.elvalledelosranchos.org/map/