Home deliveries don’t get food-tax exemption during pandemic

New Mexico

New Mexico Gov. Michelle Lujan Grisham speaks about the uptick in confirmed COVID-19 cases in the state and her decision to hold off on opening more of the economy during a news conference at the state Capitol on Thursday, June 25, 2020. (Eddie Moore/Albuquerque Journal via AP)

SANTA FE, N.M. (AP) — Taxes are being levied on home-delivered groceries that are tax free when purchased at stores in New Mexico, undercutting incentives to stay at home during the coronavirus pandemic.

A panel of government income experts noted the problem Thursday as they delved into the financial consequences of COVID-19 and New Mexico’s stay-at-home order to avoid infections.

New Mexico lawmakers removed the gross receipts tax from sales of most food items in 2004, but the exemption covers only on-site sales.

Gross receipt taxes on sales and services range from about 5.5% in some rural areas to more than 9% in Espanola.

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