New Mexico Administrative Code › Title 3 - TAXATION › Chapter 2 - GROSS RECEIPTS TAXES › Part 20 - GOVERNMENTAL GROSS RECEIPTS › Section 3.2.20.19 - RECEIPTS FROM SERVICES - RECREATIONAL, ENTERTAINMENT AND ATHLETIC SERVICES

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Receipts of any agency, institution, instrumentality or political subdivision
				of the state of New Mexico from performing services which are entirely or
				predominantly recreational, entertainment or athletic services in facilities
				which are open to the general public are governmental gross receipts and are
				subject to the governmental gross receipts tax.
B. Example: A public university sells season
				tickets to the games of its basketball team. The price of the season ticket
				includes use of a parking space in a parking lot near the place where the games
				are played. All receipts from the sale of the season tickets, including any
				receipts that might otherwise be attributable to the value of right to use the
				parking space, are governmental gross receipts.
C. Admissions fees to a recreational,
				entertainment or athletic facility open to the general public or to a
				recreational, entertainment or athletic event in a facility open to the general
				public are governmental gross receipts.
D. Example 1: Municipality X maintains a
				museum. An admissions fee of $2 is charged for admission to the museum, except
				that no fee is charged to school classes or accompanying adults. Receipts from
				the admissions fees collected are governmental gross receipts.
E. Example 2: A state agency maintains parks.
				It charges campers an admissions fee which also permits the use of a camping
				spot (whether designated or not). Receipts from the admissions fees collected
				are governmental gross receipts.
F.
				Student activity fees received by a state university, college or school are
				governmental gross receipts to the extent that the fees permit attendance at
				recreational, entertainment or athletic events in facilities open to the
				general public. When the portion of the student activity fees permitting
				attendance at recreational, entertainment or athletic events in facilities open
				to the general public is not readily determinable, reasonable methods may be
				used to estimate that portion, including the following.
(1) Reserved seats method. If a specific
				number of seats or places are reserved for students at the event, governmental
				gross receipts is estimated by multiplying the number of reserved seats or
				places times the amount of the lowest price ticket available to the general
				public.
(2) Face value method. When
				the student activity fee permits attendance of a student at an event at a
				reduced price (but not free), the governmental gross receipts from the sale of
				a discounted ticket is the cash received plus the amount of the discount, i.e.,
				the face value of the ticket.
(3)
				Budget method. When the student activity fees are commingled with other revenue
				sources and the total is used to carry on several activities, including at
				least one taxable activity such as a program of athletic contests in facilities
				open to the general public, the portion of the student activity fees which are
				governmental gross receipts is estimated by multiplying the total amount of
				student activity fees by a fraction, the numerator of which is the amount
				budgeted for taxable activities and events and the denominator of which is the
				total amount of commingled funds budgeted for all activities and
				events.
(4) Any other method agreed
				to by the secretary or the secretary's delegate.