LAS CRUCES, NM (AP) – Walmart taxed groceries delivered by at least two people in New Mexico, even though a tax deduction governing those door-to-door deliveries took effect on July 1.
Walmart told the Las Cruces Sun-News that it is working to remove the sales tax assessment on delivered groceries after receiving clarification from the state on the new tax exemption. “We apologize for the confusion,” Walmart said in a statement.
As delivered groceries became more popular during the pandemic, New Mexicans noticed gross receipts tax charges on their delivered groceries, which would normally be tax-free at grocery stores.
Previously, only food sold in retail stores could be deducted from gross tax revenue. But earlier this year, New Mexico lawmakers changed the policy so that the deduction applied to foods sold by retail stores, making delivered groceries deductible.
Department of Taxation and Revenue spokesperson Charlie Moore said that although the agency will notify a grocer of the change in the food tax deduction, the department “cannot control which deductions a taxpayer chooses. to claim “.
The grocer can decide whether or not to take the deduction, according to Moore, although most grocers take the deduction and choose not to charge the tax.
“It is up to each taxpayer to interpret their eligibility for deductions,” Moore said. “The tax on gross receipts is an obligation of the company.