2019 New Mexico Statutes
Chapter 7 - Taxation
Article 9 - Gross Receipts and Compensating Tax
Section 7-9-39 - Exemption; gross receipts tax; fees from social organizations.
A. Exempted from the gross receipts tax are the receipts from dues and registration fees of nonprofit social, fraternal, political, trade, labor or professional organizations and business leagues.
B. For the purposes of this section:
(1) "dues" means amounts that a member of an organization pays at recurring intervals to retain membership in an organization where such amounts are used for the general maintenance and upkeep of the organization; and
(2) "registration fees" means amounts paid by persons to attend a specific event sponsored by an organization to defray the cost of the event.
History: 1953 Comp., § 72-16A-12.27, enacted by Laws 1969, ch. 144, § 32; 1977, ch. 141, § 1.
ANNOTATIONSCompiler's notes. — The following cases were decided under the prior version of this section which exempted nonprofit business organizations.
It is not necessary for all members to engage in business in order for a group to constitute a business organization. AAA v. Bureau of Revenue, 1975-NMSC-058, 88 N.M. 462, 541 P.2d 967.
Nonprofit business organization exempt. — The supreme court has decided that a nonprofit business organization, the receipts of which are from dues and registration fees of its members, is exempt from the payment of a gross receipts tax. Twining Coop. Domestic Water & Sewer Ass'n v. Bureau of Revenue, 1976-NMCA-052, 89 N.M. 345, 552 P.2d 476, cert. denied, 90 N.M. 7, 558 P.2d 619.
The American Automobile Association is a "business organization" in the common understanding of that term. It is a group of people that has a more or less constant membership, a body of officers, a purpose and a set of regulations, and engages in a commercial activity, even though it is a nonprofit activity and the receipts involved in AAA's activities are from dues and registration fees. AAA v. Bureau of Revenue, 1975-NMSC-058, 88 N.M. 462, 541 P.2d 967.
A "nonprofit" corporation means a corporation which distributes no part of the income or profit to its members, directors or officers. AAA v. Bureau of Revenue, 1975-NMSC-012, 87 N.M. 330, 533 P.2d 103, rev'd on other grounds, 1975-NMSC-058, 88 N.M. 462, 541 P.2d 967.
