New Mexico to grocery stores: Stop taxing food on deliveries

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.