Online retail giant Amazon will soon begin collecting taxes on purchases being sent to New Mexico addresses.
Officials with the New Mexico Taxation and Revenue Department confirmed Monday that the new sales tax will begin in April.
The tax will combine state and local rates to total about 7 per cent.
Department spokesman Ben Cloutier says the revenues generated by Amazon's collections will be significant, likely in the tens of millions of dollars.
Some of the revenue will go into the state's general fund and the rest will be allocated to the cities where the item was purchased.
As New Mexico looks to fill a budget gap, lawmakers are considering measures to force internet vendors without a physical presence in the state to collect gross receipts taxes.
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