Restaurant and Bar Gross Receipts Tax Relief
The temporary Gross Receipts Tax relief authorized by Senate Bill 1 allows many restaurants, bars, breweries and similar businesses a Gross Receipts Tax deduction for sales of prepared food and drinks made after March 1, 2021 and prior to July 1, 2021.
The tax relief is intended to help businesses that have been especially hard hit financially during the COVID-19 pandemic.
During the four-month period that the deduction is available, eligible businesses may choose either to not charge Gross Receipts Tax on the deductible receipts, or to charge the tax but keep the amount charged.
Fast food restaurants are not eligible for the deduction, but mobile food services do qualify.
More information, including how the deduction will be claimed, is available on the Forms & Publications page of tax.newmexico.gov.