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Information for Non-profits

New Mexico considers you a tax-exempt organization if the federal government has first granted the status to you under Section 501(c) of the Internal Revenue Code with a classification as an educational or social entity.

Your gross receipts may be exempt from gross receipts tax under Section 7-9-29 NMSA 1978.

Generally, the receipts of a 501(c)(3) or 501(c)(6) organization are exempt from gross receipts tax, except for unrelated trade or business under the Internal Revenue Code. Unrelated business income is fully taxable at state and federal levels.

What you buy may not be exempt from taxation.  Note: Although the gross receipts of a 501(c)(3) organization are exempt, the organization will pay another business’s passed-on gross receipts tax when it buys tangible personal property unless it delivers a nontaxable transaction certificate (NTTC) to the seller and the receipts are eligible for the deduction identified on the NTTC.

For more information see:

FYI-103: Information for Non-Profit Organizations

FYI-105: Gross Receipts & Compensating Taxes – An Overview

Quick Guide 04: 501(c)(3) Nonprofit Groups & New Mexico’s Gross Receipts Tax

FYI-204: Nontaxable Transaction Certificates (NTTCs)