N.M. Code R. § 3.2.20.9 – “Receipts” and “Taxable Activity” Defined

A. “Receipts” means the total amount of money or the value of other consideration received by the state of New Mexico or any agency, institution, instrumentality or political subdivision thereof from another person.
B. Example: 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 to the organization in exchange for certain services. 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. City Y has receipts equal to the value of the consideration, up to the value of the passes supplied. The zoo also occasionally exchanges animals with other zoos which are parts of the state of New Mexico. In an exchange, the value of the other consideration received (in this case the value of the animal received) must be included in receipts.
C. Money or other consideration received in transactions among parts of an agency, institution, instrumentality or political subdivision are not receipts and therefore are not governmental gross receipts.
D. Example: City A's water department is operated on an enterprise basis. It sells water to City A's recreation department which must pay monthly, just as all of the water department's outside customers do. This is a transaction entirely within City A. City A as a whole has no receipts and therefore no governmental gross receipts from the transaction; money merely moved from one department's account to another's.
E. As used in Part 3.2.20 NMAC, the term “taxable activity” means:
(1) the sale of tangible personal property other than water from facilities open to the general public;
(2) the sale of water by a utility owned or operated by a political subdivision of New Mexico;
(3) the performance of or admissions to recreational, athletic or entertainment services or events in facilities open to the general public; or
(4) the performance of refuse collection, refuse disposal or sewage services.
[6/28/91, 10/2/92, 11/15/96; 3.2.20.9 NMAC - Rn, 3 NMAC 2.100.9 & A, 4/30/01]