New Mexico Sales and Use Tax Bond Guide
If you’re a New Mexico business that purchases out–of–state goods or services, you’ll likely need this bond.
Bond Overview
- Purpose: To protect New Mexico businesses from unfair competition because of out–of–state importation
- Who Needs It: All businesses that make purchases outside of New Mexico state lines
- Regulating Body: The Taxation and Revenue Department
- Required Coverage: $1,000–$100,000
- Premium Rate: 1–10% of required amount, credit–based
Learn all about the bond requirements and process in this guide.
What Is a New Mexico Sales and Use Tax Bond?
A New Mexico sales and use tax bond ensures that businesses importing goods and services are still paying the appropriate sales tax.
This tax, also known as the compensating tax, protects businesses from unfair competition that arises when businesses import goods to avoid sales tax.
How Much Do Sales and Use Tax Bonds Cost?
New Mexico sales and use tax bonds cost a small percentage of the required coverage amount, typically 1–10%.
The bond amount is calculated according to the tax amount imposed on the business based on their location.
Exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Sales and Uses Tax Bond?
The New Mexico Taxation and Revenue Department requires this bond for any business that imports goods or services into the state or manufactures property or goods for their own use.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a New Mexico sales and use tax bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file it with the New Mexico Taxation and Revenue Department as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a New Mexico Sales and Use Tax Bond Work?
A sales and use tax bond creates a legal contract between these three parties:
- Principal: You, the business, filing the bond
- Obligee: The New Mexico Taxation and Revenue Department requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of New Mexico Statutes Chapter 7, Article 9.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you must ultimately refund the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your sales and use tax bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
