A. Exempted from the gross receipts tax are the receipts of organizations that demonstrate to the department that they have been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the United States Internal Revenue Code of 1986, as that section may be amended or renumbered, except for receipts of a hospital licensed by the department of health.

B. Exempted from the gross receipts tax are the receipts from carrying on chamber of commerce, visitor bureau and convention bureau functions of organizations that demonstrate to the department that they have been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(6) of the United States Internal Revenue Code of 1986, as that section may be amended or renumbered.

C. This section does not apply to:

(1) receipts derived from an unrelated trade or business as defined in Section 513 of the United States Internal Revenue Code of 1986, as that section may be amended or renumbered;

(2) receipts of a prime contractor that are derived from operating a facility in New Mexico designated as a national laboratory by an act of congress; or

(3) receipts of a prime contractor that are derived from operating a research facility in New Mexico that is owned by the state.

History: 1978 Comp., § 7-9-29, enacted by Laws 1970, ch. 12, § 3; 1983, ch. 220, § 6; 1988, ch. 139, § 1; 1990, ch. 41, § 5; 2019, ch. 44, § 1; 2019, ch. 270, § 33.

Cross references. — For the exemption of certain organizations from the compensating tax, see 7-9-15 NMSA 1978.

For Sections 501 and 513 of the Internal Revenue Code, see 26 U.S.C. §§ 501 and 513.

2019 Multiple Amendments. — Laws 2019, ch. 44, § 1 and Laws 2019, ch. 270, § 33, both effective July 1, 2019, enacted different amendments to this section that can be reconciled. Pursuant to 12-1-8 NMSA 1978, Laws 2019, ch. 270, § 33, as the last act signed by the governor, is set out above and incorporates both amendments. The amendments enacted by Laws 2019, ch. 44, § 1 and Laws 2019, ch. 270, § 33 are described below. To view the session laws in their entirety, see the 2019 session laws on NMOneSource.com.

The nature of the difference between the amendments is that Laws 2019, ch. 44, § 1, excluded national laboratory contractors and contractors running state-owned research facilities from the gross receipts tax exemption for nonprofit organizations, and made certain technical amendments, and Laws 2019, ch. 270, § 33, excluded hospitals from the gross receipts tax exemption.

Laws 2019, ch. 44, § 1, effective July 1, 2019, excluded national laboratory contractors and contractors running state-owned research facilities from the gross receipts tax exemption for nonprofit organizations, and made certain technical amendments; in the section heading, added "exceptions"; after "Internal Revenue Code of", deleted "1954" and added "1986" throughout; and in Subsection C, added Paragraphs C(2) and C(3).

Laws 2019, ch. 270, § 33, effective July 1, 2019, excluded hospitals from the gross receipts tax exemption; and in Subsection A, after "renumbered", added "except for receipts of a hospital licensed by the department of health".

The 1990 amendment, effective July 1, 1990, substituted "department" for "division" in Subsections A and B.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Charitable organization: exemption of charitable or educational organization from sales or use tax, 53 A.L.R.3d 748.

Exemption of charitable or educational organization from sales or use tax, 69 A.L.R.5th 477.