New Mexico to grocery stores: Stop taxing food on deliveries

New Mexico

Marylou Ligier takes a to-go order to a patron at her family’s restaurant and pastry shop Clafoutis on Monday, Aug. 24, 2020, in Santa Fe, New Mexico. An outdoor tent, seen in the reflection of a pastry case, was installed three weeks ago in the parking lot after indoor seating was banned due to COVID-19. Ligier says the tent rental costs thousands of dollars each month, nearly amounting to a second mortgage. (AP Photo/Cedar Attanasio)

SANTA, N.M. (AP) — New Mexico state taxation authorities on Wednesday urged grocery stores to stop unnecessarily collecting sales taxes on groceries that are delivered during the coronavirus pandemic.

The state remained under a stay-at-home order Thursday that discourages unnecessary outings and public gatherings.

At the same time, online shoppers have discovered gross receipts tax charges on home-delivered groceries that are tax free when purchased in stores, undercutting the incentive to stay home.

The Taxation and Revenue Department published a guidance memo that outlines exact circumstances for waiving taxes on food.

State law provides for a tax deduction for sales at retail food establishments.

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