Finance

In New Mexico, what is Gross Receipts Tax as it relates to real estate services?

AA tax on the sale of real property paid at closing
BA tax on the gross receipts of real estate brokers and other businesses for services rendered in New Mexico✓ Correct
CA transfer tax paid by the buyer
DA property tax paid annually

Explanation

New Mexico imposes a Gross Receipts Tax (GRT) on businesses for the privilege of doing business in the state. Real estate brokers pay GRT on their commission income, unlike most states that use a sales tax.

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