Amazon to collect sales tax in New Mexico starting in April


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ALBUQUERQUE, N.M. (AP) — Online retail giant Amazon will soon begin collecting taxes on purchases being sent to New Mexico addresses.

The New Mexico Taxation and Revenue Department confirmed Monday that the new sales tax will begin in April.

Department spokesman Ben Cloutier says the state gross receipts tax amounts to just over 5 percent and the revenues generated by Amazon's collections will be significant, likely in the tens of millions of dollars.

Some of the revenue will go into the state's general fund, and some will be allocated to the cities where the item was purchased.

As New Mexico looks to fill a budget gap, lawmakers are considering measures to force internet vendors without a physical presence in the state to collect taxes.

Democrat Rep. Carl Trujillo of Santa Fe said such legislation would more evenly distribute the tax burden among New Mexico businesses.

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