Multistate Tax Commission/Association of Fund-Raising Distributors & Suppliers   New Mexico

Agency: Taxation and Revenue Dept.

Contact Person: Jeanne Flannery

Tel. No.: (505) 827-0908

Fax No.: (505) 827-0331

E-mail: poffice@state.nm.us

  1. If your State exempts fundraising sales by certain groups from sales or use taxes, please indicate which of the following are exempt in your State.

Public Schools (K-12) - Exempt

Private Schools (K-12) - Not Exempt*

School Groups (e.g., clubs, bands, teams) - Not Exempt*

PTAs - Not Exempt*

PTOs - Not Exempt*

Other parent groups - Not Exempt *

(please identify)

Church Groups - Not Exempt*

Youth Sports League - Not Exempt*

501 (c)(3) organizations - Exempt

501 (c)(6) organizations

Other (specify:__________________)

* other than 501(c)(3) groups

1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?

Yes

1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.

  1. Some 501(c)(6) organizations (chambers of commerce, visitor centers & convention centers) are exempt to the extent that their receipts derive from typical chamber of commerce, visitor center or convention center activities. Otherwise their receipts are not exempt.

  2. Non profit organizations, whatever nonprofit status is under New Mexico or Federal law - other than 501(c)(3) entities (because their receipts are totally exempt anyway) - may deduct the receipts from two fundraisers per year. Section 7-9-85 NMSA 1978.

 

  1. If your State exempts fundraising sales of certain products from sales and use tax, please indicate which of the following products are exempt.

    No products are exempt.

    2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?

    Yes. Products are not exempt. Receipts of organizations, as explained under 1, may be exempt.

    2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.

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  3. If some or all fundraising groups or products qualify for exemption from sales and use tax in your State, please indicate any exceptions to or limitations on such exemptions. (Check all that apply and specify the limitation.)

    Limits on number of fundraiser events per year

    Limits on duration of fundraisers

    Section 7-9-85 NMSA 1978 limits tax free fundraisers to two per year. The organizations can have as many fundraisers as they desire. By regulation, each tax tree fundraiser is limited (with few exceptions) to a maximum of 10 days.

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  5. If some or all fundraising groups qualify for exemption from sales and use tax in your State, please set forth the procedure through which a group may establish its qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

    Contact: Public Regulation Commission
    224 Fast Palace Ave.
    Santa Fe, NM 87501
    (800) 663-4752

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  7. If some or all fundraising products qualify for exemption from sales and use tax in your State, please set forth the procedure for establishing a product's qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.

    N/A

  8.  

  9. In instances where a fundraising product or group is not exempt from sales or use tax, please indicate who bears the responsibility for collecting and remitting the tax.

    The fundraising group (e.g., school, PTA, church)

    The gross receipts tax is imposed directly on the vendor. Presumably this is the fundraising group.

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  11. In instances where a fundraising product or group is not exempt from sales or use tax, what is the basis for calculating the sales/use tax?

    Price paid by consumer to fundraising group. The gross receipts tax is measured by the receipts of the vendor. Basically this will be the price (less any discounts and refunds). Accrual basis tax payors can also deduct bad debts written off.

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  13. Provide any additional information regarding the sales and use tax treatment of fundraising transactions and/or groups in your State. Also set forth any statements, disclosures, disclaimers, etc.,to be provided as part of the clearinghouse regarding your state's practices and procedures. Attach additional sheets if necessary.