N.M. Code R. § 3.2.20.24 – Agency

A. The receipts of an agent acting for an agency, institution, instrumentality or political subdivision of the state of New Mexico are subject to the governmental gross receipts tax if the receipts are from a taxable activity.
B. Example 1: City X operates a library open to the general public. A nonprofit organization called “Friends of the X Library” agrees to help raise funds for the library by, among other activities, selling Library X's excess or obsolete books and other materials. Money resulting from these sales are turned over to Library X. These receipts are governmental gross receipts.
C. Example 2: City Y operates a zoo. Admissions are charged; annual passes are also sold. A nonprofit organization, called Zoo People, is established by concerned citizens to provide various services to or for the zoo. Zoo People collects donations to defray the costs of its activities on behalf of the zoo. The zoo agrees to provide a limited number of annual passes in exchange for certain services to the organization. Zoo People sells these passes through raffles and other means. Although Zoo People does not turn over the proceeds from these sales to the zoo, the money helps pay for services provided to or for the zoo. The value of the services supplied is other consideration; the value of the consideration, up to the value of the passes supplied, is subject to the governmental gross receipts tax.
D. Receipts of groups or organizations (other than corporations) created by an agency, institution, instrumentality or political subdivision will be considered receipts of the agency, institution, instrumentality or political subdivision for the purposes of the governmental gross receipts tax if the group or organization is acting as an agent for the agency, institution, instrumentality or political subdivision.
[6/28/91, 10/2/92, 11/15/96; 3.2.20.24 NMAC - Rn, 3 NMAC 2.100.24, 4/30/01]