New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 101 - EXEMPTIONS - GROSS RECEIPTS TAX - GOVERNMENTAL AGENCIES › Section 3.2.101.9 - RECEIPTS OF GOVERNMENTAL ENTITIES

Current through Register Vol. 35, No. 13, July 16, 2024
A. Except for the receipts from the sale of
				gas or electricity by a utility owned or operated by a political subdivision of
				the state and receipts of a municipality from the ownership or operation of a
				cable television station owned by the municipality, the receipts of the United
				States or any agency or instrumentality of the United States, the state of New
				Mexico or any political subdivision of the state or any Indian nation, tribe or
				pueblo from activities or transactions occurring on its sovereign territory are
				exempt from the gross receipts tax. This exemption applies to the receipts of
				such governmental entity from the sale, leasing or licensing of property,
				granting a franchise or from the sale of a service by that governmental entity.
				This exemption, however, does not apply to the imposition of the governmental
				gross receipts tax under the provisions of Section
				7-9-4.3
				NMSA 1978.
B. Example 1: A New
				Mexico municipality publishes and sells to the public a compilation of all its
				municipal ordinances. The receipts from these sales are not subject to the
				gross receipts tax but the receipts will be subject to the governmental gross
				receipts tax.
C. Example 2: X
				Sporting Goods Store sells a hunting license for $7.50. Of this $7.50, X remits
				$7.25 to the state of New Mexico and $0.25 is retained by X as a commission.
				The $7.25 that is remitted to the state is exempt from the gross receipts tax.
				However, the $0.25 retained by X is subject to the gross receipts tax. This
				amount is not deductible under Section
				7-9-66
				NMSA 1978 because a license is not tangible personal property under Section
				7-9-3 NMSA 1978. The
				$0.25 is a receipt derived from services performed in New Mexico.
D. Example 3: M Utility Company obtains a
				franchise from a New Mexico municipality to operate an electric utility. The
				receipts the municipality obtains from M for granting of this franchise are
				exempt from the gross receipts tax.
E. Example 4: The university of New Mexico
				sells copies of transcripts to students. These receipts are not subject to the
				gross receipts tax because the university of New Mexico is the state of New
				Mexico. Provided that the conditions set forth in 3.2.20.21 NMAC are met, the
				receipts from selling the transcript copies are not governmental gross
				receipts.
F. Example 5: The
				receipts of a public housing authority which is an agency either of the state
				of New Mexico or any political subdivision thereof or of the United States or
				any agency or instrumentality thereof are exempted from the gross receipts tax
				to the extent provided in Section
				7-9-13
				NMSA 1978. The receipts of the public housing authority from the sale of
				tangible personal property from a facility open to the general public or
				providing refuse collection, refuse disposal or sewage services are
				governmental gross receipts subject to the governmental gross receipts tax; its
				receipts in the form of rentals are not governmental gross receipts.
G. Example 6: The receipts of concessionaires
				who are not agencies or instru-mentalities of the federal government or the
				state of New Mexico or any political subdivision of the state from carrying on
				activities within a federal area are subject to the gross receipts
				tax.