Home New mexico tax Delivered groceries now tax free, but Walmart continues to tax

Delivered groceries now tax free, but Walmart continues to tax

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THINK OF NEW MEXICO

As you may recall, in the last legislative session, Think New Mexico successfully defended the enactment of a new law banning the taxation of food delivered by grocery stores to New Mexicans.

This law entered into force on July 1, 2021.

The sale of food in grocery stores has been tax-exempt since Think New Mexico secured passage of a food tax repeal law in 2004. This year’s law closed a loophole that allowed some stores impose a tax on food when it is delivered to a customer, rather than being bought in a store – a problematic practice during a pandemic.

Being able to have groceries delivered without paying taxes of up to 9% remains important for elderly and disabled New Mexicans, who often have difficulty getting to the store.

So we were concerned when we got calls last week from two New Mexicans, one in Las Cruces and one in Rio Rancho, who both reported being taxed on food orders they delivered to their local Walmart stores.

We sent letters to the New Mexico Department of Taxation and Revenue and the state attorney general’s office and urged them to take immediate action to enforce the law and prevent Walmart from charging this illegal tax.

If you have had a similar experience, with Walmart or another grocery retailer taxing your food purchase, please help us end this illegal practice by emailing the Secretary of Tax and Revenue and the Attorney General. from New Mexico and letting them know what happened. .

Please include any details you can provide, including the store, the date you ordered your groceries delivered, and ideally even attach a copy of your receipt to show the items you purchased and the tax that was imposed. . (An important note to keep in mind: the food tax exemption only applies to food purchased from a retail store for home consumption – hot foods prepared or ordered in a restaurant are therefore still subject to tax.)

About Think New Mexico

Think New Mexico is a results-driven think tank whose mission is to improve the lives of all New Mexicans, especially those without a strong voice in the political process. We fulfill this mission by educating the public, media, and policymakers about some of the most serious challenges New Mexico faces and by developing and advocating for lasting, effective, and evidence-based solutions. Visit thinknewmexico.org.


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