Medical & Dental Practices Bookkeeping in New Mexico

Registering to do business in New Mexico runs through the New Mexico Secretary of State, with tax accounts through the New Mexico Taxation and Revenue Department and employer accounts through the New Mexico Department of Workforce Solutions. New Mexico treats these as wholly independent, so being in good standing with one says nothing about the others — and the sales tax account is the one that accrues a real balance while you are not looking.

Beyond sales tax, New Mexico levies the Gross Receipts Tax (GRT) on receipts from selling goods, leasing property, and performing services, payable by the seller, though it is usually passed on to the customer. services are squarely taxable, which is the opposite of the default in most states. A consultant, designer, or agency that would be exempt elsewhere is taxable here. The consequence for your books is direct: the rate is sourced to where the goods or services are delivered, so a business serving several New Mexico locations is applying several different rates and needs revenue coded by location. It is registered and filed separately from anything the New Mexico Secretary of State handles, and it accrues on revenue rather than on profit — so it is recorded as it builds, not discovered at year end.

Whether medical and dental practices services are taxable in New Mexico is the question that catches people out — states differ enormously, and several have been broadening what counts. The Gross Receipts Tax falls on the seller and covers most services, so service businesses that would be exempt elsewhere are taxable here. We code service revenue separately from any product revenue so the treatment is explicit rather than assumed.