New Mexico landlord and tenant rules

Seayora publishes 7 New Mexico rules, covering contractor sales tax, security deposits. Every one is generated from the statute it cites — the same rule Seayora's own deadline engine enforces on a live tenancy — and carries the date it was last checked.

New Mexico at a glance

RuleNew Mexico
Do contractors charge sales tax in New Mexico?Gross receipts (Gross Receipts Tax)
Is a capital improvement exempt from sales tax in New Mexico?Not exempt
Is appliance repair taxable in New Mexico?Taxable, with the parts
Is contractor labor taxable in New Mexico?Taxable — residential and commercial
Does a landlord have to pay interest on a security deposit in New Mexico?Interest at the passbook rate on deposits over one month's rent for leases of a year or more.
How long does a landlord have to return a security deposit in New Mexico?30 days
How much can a landlord charge for a security deposit in New Mexico?1 month of rent

Contractor sales tax in New Mexico

Do contractors charge sales tax in New Mexico?

New Mexico does not run an ordinary sales tax on contractors. It taxes the contractor's own GROSS RECEIPTS, and the charge is called Gross Receipts Tax. It is a tax on the business, not a tax collected from the customer, so it applies to the whole job — including amounts a contractor recharges "at cost", such as a permit fee. New Mexico also has county, city or special-district rates on top of the state rate, so the rate depends on where the job site is, not where the contractor is based. Source: NMSA 1978 §7-9-4 (gross receipts tax on receipts from performing services and selling property in New Mexico).

GRT is levied on the CONTRACTOR's receipts and is customarily passed through as a separate line. Construction services and construction materials can be deducted by the buyer under §7-9-52 with a Type 6 NTTC — the certificate is what makes it deductible, not the nature of the work.

Full answer and the checkable figures.

Is a capital improvement exempt from sales tax in New Mexico?

No. New Mexico does not exempt capital improvements to real property the way most states do, because it taxes the contractor's gross receipts rather than running a sales tax on the customer. Work that would be exempt elsewhere is taxable here. A capital improvement is a permanent addition that becomes part of the property; a repair restores something to working order and is treated differently. Source: NMSA 1978 §7-9-4 (gross receipts tax on receipts from performing services and selling property in New Mexico).

GRT is levied on the CONTRACTOR's receipts and is customarily passed through as a separate line. Construction services and construction materials can be deducted by the buyer under §7-9-52 with a Type 6 NTTC — the certificate is what makes it deductible, not the nature of the work.

Full answer and the checkable figures.

Is appliance repair taxable in New Mexico?

Yes. New Mexico taxes the LABOR on repairs to tangible personal property — an appliance, a boiler or a unit that never becomes part of the building — as well as the parts. This is a different question from work on the real property itself: the same technician on the same visit can be doing taxable work on an appliance and differently treated work on the structure, and the invoice has to tell them apart. Source: NMSA 1978 §7-9-4 (gross receipts tax on receipts from performing services and selling property in New Mexico).

GRT is levied on the CONTRACTOR's receipts and is customarily passed through as a separate line. Construction services and construction materials can be deducted by the buyer under §7-9-52 with a Type 6 NTTC — the certificate is what makes it deductible, not the nature of the work.

Full answer and the checkable figures.

Is contractor labor taxable in New Mexico?

Yes. New Mexico taxes the LABOR on repair and maintenance work to real property, on both residential and commercial jobs. Repair and maintenance is not the same thing as a capital improvement — the classification of the job is what decides the tax, not the wording on the invoice. Source: NMSA 1978 §7-9-4 (gross receipts tax on receipts from performing services and selling property in New Mexico).

GRT is levied on the CONTRACTOR's receipts and is customarily passed through as a separate line. Construction services and construction materials can be deducted by the buyer under §7-9-52 with a Type 6 NTTC — the certificate is what makes it deductible, not the nature of the work.

Full answer and the checkable figures.

Security deposits in New Mexico

Does a landlord have to pay interest on a security deposit in New Mexico?

Yes. New Mexico requires a landlord to pay the tenant interest on a security deposit. Interest at the passbook rate on deposits over one month's rent for leases of a year or more. The deposit itself must be returned within 30 days of the end of the tenancy. This is N.M. Stat. § 47-8-18.

Full answer and the checkable figures.

How long does a landlord have to return a security deposit in New Mexico?

In New Mexico, a landlord has 30 days after the tenancy ends to return the security deposit, together with an itemised statement of any deductions. New Mexico also requires interest to be paid on the deposit: Interest at the passbook rate on deposits over one month's rent for leases of a year or more. This is N.M. Stat. § 47-8-18.

Full answer and the checkable figures.

How much can a landlord charge for a security deposit in New Mexico?

In New Mexico, a security deposit is capped at 1 month of rent. One month's rent on leases under a year. This is N.M. Stat. § 47-8-18.

Full answer and the checkable figures.

Sources

  • N.M. Stat. § 47-8-18
  • NMSA 1978 §7-9-4 (gross receipts tax on receipts from performing services and selling property in New Mexico).

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses these rules

Seayora computes the deadline this rule sets from the tenancy’s own dates, shows it on the lease and the deposit statement, and reminds the landlord before it falls due — so the answer above is not reference material sitting beside the product, it is the rule the product enforces.

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