NOTE: The information below is based on available information from the State taxation authority. Please work with the hotel, merchant, or vendor to confirm the requirements of the specific State. Should the hotel, merchant, or vendor have any questions, they should reach out directly to the State for clarification.
Are Travel IBA (6th digit 1, 2, 3, 4) transactions sales tax exempt? No
p>Additional Information or Instructions
The State of New Mexico does not directly impose State sales tax on consumers, instead it assesses a gross receipts tax on vendors. Vendors have the ability to pass the cost of the gross receipts tax to card holders. This is allowable, even on CBA transactions.
Do I need a form?
No forms are required. However, the Federal Government is only exempt from specific types of transactions in New Mexico. For example, centrally billed accounts are not subject to gross receipts taxes on tangible property. Hotels and lodging, however, are considered intangible property and are subject to gross receipts tax.
In most cases, the presentation of your centrally billed card bearing the legend "United States of America" should be enough to qualify for the gross receipts exemption so long as it is an applicable transaction type such as tangible property. Some merchants, however, may require a Type 9 (purchase of tangible personal property by a governmental entity) nontaxable transaction certificate.
Who do I contact if I have questions?
New Mexico Taxation and Revenue Department
*Updated on 02/02/2022