New Mexico Taxes Commissions and Fees for Selling Third Party Services

Wednesday, April 12th, 2017

 
 
A person holding a cellular phone in a retial shop.
Share
Link

The New Mexico Department of Taxation and Revenue recently ruled that commissions or fees received from selling cellular service agreements are taxable.

The taxpayer sold cellular goods and services on behalf of a large cellular service provider. The taxpayer received income from the sale of goods as well as commissions for service agreements acquired on behalf of the cellular service provider. The taxpayer paid tax on the amount received from the sales of goods but did not pay tax on the commissions received from the service agreement sales.

New Mexico taxes the total amount of money received from selling tangible property or services. The total amount of money received includes commissions or fees received from selling services. As a result, the taxpayer was required to pay tax on the commissions received from the service agreement sales.

https://www.ttrus.com/sites/default/files/nm/17-16_Affordable_Cellular.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Marketplace Facilitators of Software Products to be...

Friday, March 15th, 2019 -The Commissioner of Taxation and Finance in New York released an advisory opinion that determined third partie...

Arkansas Rules on Taxability of Repairs and Labor Related...

Wednesday, March 13th, 2019 -The Arkansas Department of Finance and Administration recently released an administrative decision addressing ...

Studio Room Rental for Photography Sessions is Subject to...

Wednesday, March 6th, 2019 -The Missouri Department of Revenue (DOR) has released a letter ruling addressing the taxability of studio room...

Unprocessed Sand Not Taxable in Texas

Monday, March 4th, 2019 -The Texas Comptroller recently released a private letter ruling that found the mining and selling of unprocess...

California to Require Additional Registration and...

Friday, March 1st, 2019 -California recently released a special notice for out-of-state retailers who are required to register with the...

Guided Hunting and Fishing Trips are Taxable in Washington

Wednesday, February 27th, 2019 -The Washington Department of Revenue recently published guidance stating that guided hunting and fishing trips...