New Mexico Tax Department Issues Information on Sales, Excise Taxability of Short-Term Leased Vehicles

The New Mexico Taxation and Revenue Department (TRD) July 1 issued sales and use tax information for taxpayers engaged in the business of leasing motor vehicles under a short-term lease agreement. The leased vehicle gross receipts tax is 5 percent on the receipts from leasing vehicles and the leased vehicle surcharge is $2 for each day a vehicle is leased. Lessors who are subject to the leased vehicle tax may apply for a suspension of the motor vehicle excise tax due on vehicles acquired for leasing. The suspension is for a maximum of 12 months. Taxpayers must file and pay ...