State to grocery stores: Stop taxing food on deliveries
SANTA FE (AP) — New Mexico state taxation authorities on Wednesday urged grocery stores to stop unnecessarily collecting sales taxes on food that is delivered during the coronavirus pandemic.
New Mexico remains under a stay-at-home order that discourages unnecessary outings and public gatherings. At the same time, online shoppers have discovered gross receipts tax charges on sales of home-delivered groceries that are tax free when purchased in stores, undercutting the incentive to stay home.
“Many New Mexicans have been trying to do the right thing during the health emergency by limiting their outings, and one way to do that is to order groceries online and have them delivered,” Taxation and Revenue Department Secretary Stephanie Schardin Clarke said in a news release. “We certainly don’t want to discourage that, and we hope that this new guidance will alleviate confusion.”
State law provides a tax deduction for sales at a retail food establishment, and a memo from the tax agency outlines exact circumstances for waiving taxes on food.
Read more: https://www.hobbsnews.com/2020/09/04/state-to-grocery-stores-stop-taxing-food-on-deliveries/
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