State Law - Gross Receipts Tax Identification Number

All persons engaging in business in New Mexico must register with the New Mexico Taxation and Revenue Department to obtain a "Combined Reporting System" (CRS) identification number. The CRS is the Department’s method for reporting the state’s major business taxes: gross receipts tax, all local option gross receipts taxes, compensating tax, and withholding tax. The CRS identification number is your state tax identification number and is commonly called the gross receipts tax identification number.

There is no fee to obtain a CRS identification number. There are two ways to obtain a CRS identification number. The first way to obtain a CRS identification number is to submit an application to the local tax office in Roswell in person, by mail or fax and you may expect to receive your CRS identification number within one week. The second way to obtain a CRS identification number is to apply online. Online registration is available at: https://tap.state.nm.us/tap. A CRS identification number will be automatically generated once registration is complete.

Gross Receipts Tax Rate

The gross receipts tax rate for persons engaging in business from a physical location within the Hobbs City Limits is 6.8125%. Even if your business is providing goods or services outside the City Limits or County Limits, if you are a Hobbs-based business, you must charge sales tax and remit those taxes to the State.

Business Registration - New Merchandise, Sales, Service

Each place of business with an actual physical address located within the Hobbs City Limits, operating a business for the purpose of profit and who are required to have a New Mexico taxpayer identification number, are required to obtain a City of Hobbs Business Registration. The annual cost is $25 per calendar year. (Chapter 5.04 of the Hobbs Municipal Code)

Mobile Business Registration - New Merchandise

Any person who has a valid business registration within the City of Hobbs and is engaged in mobile business activity at a location which is not their usual place of business must pay an additional $100.00 and obtain a Mobile Business Registration. The annual cost is $100.00 per calendar year. (Chapter 5.04.031 of the Hobbs Municipal Code)

Secondhand Dealer’s License - Used Merchandise

Any person operating a secondhand store or junkshop within the Hobbs City Limits, engaging in the business of buying and reselling used merchandise or goods, is required to obtain a New Mexico gross receipts tax number and a City of Hobbs Secondhand Dealer’s License. The annual cost is $50 per year. (Chapter 5.32 of the Hobbs Municipal Code)

Solicitor's Permit

A solicitor’s license is required for any person who goes from door to door visiting single family or multi-family dwellings and businesses to sell any goods, wares, merchandise or services. The annual fee is $25.00 and fingerprinting is required along with a background check and approval by the Police Chief. All approved solicitors are required to visibly display their valid Solicitor’s Permit issued by the Hobbs City Clerk’s Office which will include a photograph of the solicitor. (Chapter 5.36.010 of the Hobbs Municipal Code)

*PENALTY*

Any person convicted of a violation of any provision of the above chapters of the Hobbs Municipal Code shall be guilty of a misdemeanor and shall be punished by a fine of not more than $500.00 or by imprisonment for not more than 90 days, or by both such fine and imprisonment. Each day that the violation is committed or permitted to continue shall constitute a separate offense and shall be punishable as such hereunder.