I just began my notary and signing agent business. I was curious to know, if/when I complete either a standard notarial act and/or complete a loan signing, is required to charge sales tax for each transaction? What transactions (if any) would one be required to charge sales tax? I live in New Mexico and the local city sales tax is 8%. Any advice or information would be appreciated. Thank you!
Never heard of any such requirement anywhere. What a PITA that would be. Shhhh…don’t give them ideas.
Here’s what I found with a quick google search:
“New Mexico does not have a sales tax. It has a gross receipts tax instead. This tax is imposed on persons engaged in business in New Mexico. … Generally speaking, sales and leases of goods and other property, both tangible and intangible, are taxable.”
I would suggest you contact the appropriate state and local agencies and inquire as to your taxing requirements. Do you have a state income tax? You may have to report that with your state income tax return. Again, I’d suggest contacting your state agencies to find out - start here:
Or an easier way would be to contact another New Mexico notary or a tax professional and ask them… no matter, BUT…make sure you do this and get your answers before you start any work so you have all your ducks in a row.
As to loan signings, you are not charging the customer - you are a subcontractor. Therefore, the sales tax burden is not yours. As to GNW, check with your state Department of Revenue. They can answer immediately.
Right. I was thinking more about doing private signings with individuals, not with a subcontractor. Not sure how often that will happen, but if it does, I suppose all of the pricing would have to be mutually agreeable between me and the signing party. If we have to charge a tax, I would (of course) include that in the mutual price. Thank you for your reply.
Any loan signings you do through a signing company will be as a subcontractor.
you work for the state. No sales tax
In VA, we don’t even have to pay self employment tax, Notaries are not charged for that.
Gail…if the self-employment tax you’re referring to is on your federal return, then that’s a federal regulation applicable to all states. However, you do pay SE tax on your income - the only thing exempt from SE tax is the fee your state allows for the notarizations. The rest of your income is subject to SE tax after appropriate deductions - further, all of your income is subject to federal income tax (I know you didn’t mention that but throwing it in there since it’s all the same subject).
Putting this out there in case anyone comes across this thread - just wanted it to be clear that yes, our income is taxable.
There is no Sales Tax on Services, just as An attorney, they do NOT pay sales tax…!!!
This helps a lot notary_stl. Thank you. I know I have to include income from my business come income tax time; that’s one of the benefits of owning an LLC, not having to file a separate tax. But being new, I wanted to make sure that I didn’t do anything wrong by not charging it. I really didn’t want to have to in the first place. But again, thanks!
Taxable only if there is a profit off the signings