Is it illegal for NM businesses to over charge state sales tax?
Businesses can charge whatever the traffic will bear; that’s what a free enterprise system is all about. If you don’t like their price, go elsewhere. Gross receipts taxes are resorted to by some states to get around the “ban” on Internet taxes. Since the tax is levied upon the business and not the customer, the Internet “ban” does not apply. Businesses will sometimes state the Gross Receipts tax on receipts and invoices so that the customer will know how much is being paid but they are under no obligation to do so. Businesses pass on all costs to the consumer so of course the consumer ultimately pays the tax. But the consumer also ultimately pays the business’ electric bill, payroll, payroll taxes, income taxes, water bill, auto tags, property taxes, yadda yadda. The only thing that the business can’t do is collect a “Sales Tax” from the customer since the State doesn’t levy one. Some low-end accounting packages may not be able to to separate out Gross Receipts Taxes and Sales Taxes so
