SENATE BILL 271

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Timothy Z. Jennings

AN ACT

RELATING TO TAXATION; MODIFYING THE GROSS RECEIPTS TAX TREATMENT OF NONPROFIT ORGANIZATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 7-9-39 NMSA 1978 (being Laws 1969, Chapter 144, Section 32, as amended) is amended to read:

     "7-9-39. EXEMPTION--GROSS RECEIPTS TAX--[FEES FROM SOCIAL ORGANIZATIONS] NONPROFIT DONATIONS, DUES AND FEES.--

          A. Exempted from the gross receipts tax are the receipts from donations, dues and registration fees of nonprofit social, fraternal, political, trade, labor or professional organizations; chambers of commerce; visitor bureaus; convention bureaus; and business leagues, 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 entities described in Section 501(c) of the United States Internal Revenue Code of 1986, as amended or renumbered.

          B. For the purposes of this section:

                (1) "donations" means gifts;

                [(1)] (2) "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)] (3) "registration fees" means amounts paid by persons to attend a specific event sponsored by an organization to defray the cost of the event."

     Section 2. REPEAL.--Section 7-9-29 NMSA 1978 (being Laws 1970, Chapter 12, Section 3, as amended) is repealed.

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