No corporate income or franchise tax shall be imposed upon:

A. insurance companies, reciprocal or inter-insurance exchanges which pay a premium tax to the state;

B. 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

C. religious, educational, benevolent or other organizations not organized for profit which are exempt from income taxation under the Internal Revenue Code unless the organization receives income which is subject to federal income taxation as "unrelated business income" under the Internal Revenue Code, in which case the organization is subject to the corporate franchise tax, and the corporate income tax applies to the unrelated business income.

History: 1978 Comp., § 7-2A-4, enacted by Laws 1981, ch. 37, § 37; 1986, ch. 20, § 35; 1989, ch. 111, § 1.

Cross references. — For exemption of nonprofit corporations, see 53-8-28B NMSA 1978.

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

The 1989 amendment, effective June 16, 1989, substituted the present provisions of Subsection C for "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".

Am. Jur. 2d, A.L.R. and C.J.S. references. — 19 Am. Jur. 2d Corporations, § 2524; 71 Am. Jur. 2d State and Local Taxation §§ 309, 318, 326 to 331, 362 to 391, 428 to 435, 475, 477 to 482.

Exemption from taxation of property which religious or charitable body has no right to hold, 27 A.L.R. 1047.

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

Gift or trust for benefit of employees of corporation or business as within exemption or deduction provisions of succession tax or income tax law, 71 A.L.R. 870.

Permissible classification of insurance companies which will justify discrimination among them by taxing statutes, 83 A.L.R. 464.

Business trust, franchise tax on, as denial of equal protection of the laws, 108 A.L.R. 333.

Annuities, consideration paid for, as "premium" within contemplation of statute imposing franchise tax on insurance company, 109 A.L.R. 1060, 135 A.L.R. 1248.

What constitutes a trust, for income tax purposes, 113 A.L.R. 457.

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

Hospitals as within tax exemption provision not specifically naming hospital, 144 A.L.R. 1483.

Tax exemption of property of religious, educational, or charitable body as extending to property or income thereof used in publication or sale of literature, 154 A.L.R. 895.

What amounts to trust for benefit of employees within exemption from income tax, 161 A.L.R. 774.

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.

Receipt of payment from beneficiaries as affecting tax exemption of charitable institutions, 37 A.L.R.3d 1191.

Tax exemption of property of educational body as extending to property used by personnel as living quarters, 55 A.L.R.3d 485.

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 §§ 208 to 218, 261 to 262, 310 to 312, 321 et seq.; 85 C.J.S. Taxation §§ 1736 to 1737.