No income tax shall be imposed upon:

A. a trust organized or created in the United States and forming part of a stock bonus, pension or profit-sharing plan of an employer for the exclusive benefit of his employees or their beneficiaries, which trust is exempt from taxation under the provisions of the Internal Revenue Code; or

B. religious, educational, benevolent or other organizations not organized for profit which are exempt from income taxation under the Internal Revenue Code except to the extent that such income is subject to federal income taxation as "unrelated business income" under the Internal Revenue Code.

History: 1953 Comp., § 72-15A-4, enacted by Laws 1965, ch. 202, § 4; 1969, ch. 152, § 2; 1971, ch. 20, § 2; 1981, ch. 37, § 15.

Cross references. — For exemption of severance tax bonds from taxation, see 7-27-24 NMSA 1978.

For exemption of mortgage finance authority and bonds and notes thereof, see 58-18-18 NMSA 1978.

For the Internal Revenue Code, see 26 U.S.C. § 1 et seq.

Tax burden should fall with uniformity and equality upon the class of persons sought to be taxed. N.M. Elec. Serv. Co. v. Jones, 1969-NMCA-111, 80 N.M. 791, 461 P.2d 924.

Exemptions strictly construed. — In pursuance of the beneficent public policy which favors equality in the distribution of the burden of government, all exemptions of persons or property from taxation are to be construed strictly against the exemption; the intention to create exemptions must affirmatively appear and cannot be raised by implication. N.M. Elec. Serv. Co. v. Jones, 1969-NMCA-111, 80 N.M. 791, 461 P.2d 924.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation §§ 362 to 391, 475 to 482.

Construction of exemption of religious body or society from taxation or special assessment, 17 A.L.R. 1027, 168 A.L.R. 1222.

Exemption of charitable organization from taxation or special assessment, 34 A.L.R. 634, 62 A.L.R. 328, 108 A.L.R. 284.

Extent of area within tax exemption extended to property used for educational, religious, or charitable purposes, 134 A.L.R. 1176.

Exemption of college fraternity house or dormitory from taxation, 66 A.L.R.2d 904.

When is corporation, community chest, fund, foundation or club "organized and operated exclusively" for charitable or other exempt purposes under Internal Revenue Code, 69 A.L.R.2d 871.

Qualification of health care entities for federal tax exemption as charitable organization under 26 USCS § 501(c)(3), 134 A.L.R. Fed. 395.

84 C.J.S. Taxation §§ 321 to 393; 85 C.J.S. Taxation §§ 1715 to 1719, 1736 to 1737.