The state of New Mexico is one of several that charges a sales tax on escrow, closing, and settlement fees. These taxes vary by location, and typically there are changes across multiple localities from one half of the year to the next.
Since the rate charged is dependent on closing location, which is generally unknown or can change from the time of the initial quote, LodeStar references the highest rate possible in the state when a quote is requested in order to ensure that there are no cures on this amount.
This tax will appear if a client requests LodeStar support to toggle it on, and will display in Section C as follows:
For more information, consult the New Mexico Gross Receipts Tax website:
https://www.tax.newmexico.gov/businesses/gross-receipts-overview/
See also the following Gross Receipts Tax Rate Schedule: