On August 9, 2022, the New Mexico Taxation and Revenue Department issued proposed regulations explicating the gross receipts tax (i.e. the state’s version of a sales tax) treatment of digital advertising services. The proposed regulations “clarify” that the state’s gross receipts tax applies to providers of digital advertising services whose digital platform may be accessed or viewed from within New Mexico. State tax regulators explicitly state that the proposed regulations do not reflect a policy change, but instead emphasize that the rules make consistent the tax treatment for all advertising platforms (non-digital and digital).

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