Overview
New Mexico regulates vending machines through business registration requirements, gross receipts tax compliance, and local health permits for food vending operations. The state uses gross receipts tax instead of traditional sales tax and requires business registration with the Public Regulation Commission. New Mexico follows the 2017 FDA Model Food Code for food safety.
New Mexico's gross receipts tax system is unique and applies to gross receipts from business activities. Local governments may impose additional requirements beyond state regulations. Native American tribal lands have separate jurisdictions.
Business Registration
Business registration is required for vending operators in New Mexico.
Registration Agency
New Mexico Secretary of State →
Registration Types
- LLC Formation ($50 filing fee)
- Corporation Formation ($100 filing fee)
- Partnership Registration ($25 filing fee)
- Foreign Entity Registration ($200 filing fee)
- Trade Name Registration ($25 filing fee)
Business entities must maintain a registered agent and office in New Mexico. Foreign entities must register before conducting business. Annual reports required for corporations and LLCs. Certificate of Authority required for out-of-state businesses.
Sales Tax
Tax Application
- General sales tax applies to vending: Yes
- Food tax variation: Same as general
- Local rates possible: Yes
- Resale certificate required: Yes
- Filing frequency: monthly for most businesses
New Mexico uses gross receipts tax instead of sales tax. Vending operators must pay gross receipts tax on receipts from vending sales. State rate is 5.125% plus local rates up to 4.9375%. Nontaxable transaction certificates (NTTC) available for resale transactions.
Registration
Forms: CRS-1 (Combined Registration Application), NTTC-1 (Nontaxable Transaction Certificate)
Vending Operator License
Vending operator license is not required in New Mexico.
Machine Registration
Machine registration is not required in New Mexico.
Health Permit & Food Code
Health permits are required for:
- Machines dispensing potentially hazardous foods (TCS)
- Micro markets
- Fresh food vending
- Bulk food dispensing machines
Agency: New Mexico Environment Department
Food Code: 2017 FDA Model Food Code
Inspections: At least annually
Micro Markets
Micro markets are recognized in state code.
Permit required: Yes
Specific Requirements
- Food establishment permit required
- Adequate supervision or monitoring system
- TCS foods require proper temperature control
- Must comply with retail food establishment requirements
- Employee health and hygiene training may be required
Product Restrictions
Restricted Products
- Alcohol: Prohibited in vending machines. New Mexico requires licensed establishments for alcohol sales with trained staff and age verification systems. Special permits required through the Alcohol and Gaming Division.
- Tobacco: Prohibited in accessible vending machines except in adult-only establishments where minors are not permitted. Age 21+ requirement. Employee-assisted sales typically required. Tobacco dealer permit required for sales.
- CBD/Hemp: Hemp products must comply with New Mexico Department of Agriculture hemp regulations and Cannabis Control Division requirements. THC content must not exceed 0.3%. Adult-use cannabis regulations may also apply.
- Age Verification: Strict age verification required for restricted products. ID required for anyone appearing under 30. Electronic age verification may be required for certain products.
Placement Rules
Schools
Federal Smart Snacks nutrition standards apply to competitive foods sold during school hours. New Mexico Public Education Department administers USDA child nutrition programs and school vending regulations.
Public Buildings
Must comply with state and local procurement regulations. Vendor registration may be required for government facility contracts. Public contracting laws apply to state and local government facilities.
Private Property
Property owner permission required. Subject to local zoning and business regulations. Must comply with ADA accessibility requirements for public accommodations.
ADA & Accessibility
Must comply with ADA requirements including accessible routes, proper reach ranges, and operable controls. State accessibility standards may supplement federal requirements.
Electrical & Fire Code
Must comply with New Mexico electrical code and local fire codes. Commercial electrical requirements apply. Building permits may be required for permanent installations.
Local Permits
New Mexico has home rule, meaning local jurisdictions can impose additional requirements.
Typical Local Requirements
- City business license
- Local health permits for food vending
- Building permits for installations
- Zoning compliance and approvals
- Right-of-way permits for public placement
Example Localities
Albuquerque
Requires business license for vending operations. Health permits required for food vending machines. Zoning approvals needed for placement. Special permits may be required for Old Town and downtown areas.
Santa Fe
Business license required. Food establishment permits for food vending. Building permits for installations. Special consideration for historic district placements and plaza areas.
Las Cruces
Municipal business license required. Health permits for food vending. Zoning compliance required. Special permits may be needed for university area placements.
Penalties & Enforcement
Common Violations
- Operating without business registration
- Gross receipts tax non-compliance
- Food safety violations in vending machines
- Operating without required health permits
- Zoning violations for placement
- Consumer protection law violations
Penalties
- Business registration violations: fines up to $1,000
- Gross receipts tax penalties: 2% per month on unpaid tax
- Food safety violations: permit suspension or revocation
- Health permit violations: fines up to $300 per day
- Zoning violations: daily fines until compliance
Key Contacts
New Mexico Department of Health
Phone: (505) 827-2613
New Mexico Public Regulation Commission
Phone: (505) 827-4504
New Mexico Regulation and Licensing Department
Phone: (505) 476-4500
Frequently Asked Questions
How does New Mexico's gross receipts tax work for vending machines?
New Mexico uses gross receipts tax instead of sales tax. Vending operators pay tax on their gross receipts from sales. The state rate is 5.125% plus local rates up to 4.9375%. You register through the Combined Registration Application (CRS-1) and file monthly returns.
Are health permits required for food vending machines in New Mexico?
Yes, machines dispensing potentially hazardous foods, micro markets, fresh food vending, and bulk food dispensing require food establishment permits. The permit fee is around $200, and food protection manager certification is required.
Do I need individual permits for each vending machine in New Mexico?
No, New Mexico does not require individual machine registration at the state level. Business registration covers all vending operations, and health permits cover food vending activities. Local jurisdictions may have their own requirements.
Can I sell tobacco products through vending machines in New Mexico?
Tobacco vending machines are prohibited except in adult-only establishments where minors are not permitted. Age 21+ requirement applies, and employee- assisted sales are typically required. A tobacco dealer permit is required for any tobacco sales.
What business registration is required in New Mexico?
You must register your business entity with the Public Regulation Commission and register for gross receipts tax with the Taxation and Revenue Department. Use the Combined Registration Application (CRS-1) for tax registration. Filing fees range from $25-200 depending on entity type.
What are the penalties for gross receipts tax non-compliance?
Penalties include 2% per month on unpaid gross receipts tax, plus interest. Business registration violations can result in fines up to $1,000. Food safety violations may result in permit suspension or revocation, with fines up to $300 per day.
Sources
- New Mexico TRD - Gross Receipts Tax
- New Mexico Environment Department - Food Safety Program
- New Mexico SOS - Business Services
- New Mexico TRD - Business Registration
- New Mexico PED - Nutrition and Wellness
- New Mexico RLD - Cannabis Control Division
- City of Albuquerque - Business Registration
- City of Santa Fe - Business Licenses