NMSA 1978, § 7-9-60 — 7-9-60

Deduction; gross receipts tax; governmental gross receipts
tax; sales to certain organizations.

# A.

Except as provided otherwise in Subsection B of this section, receipts from
selling tangible personal property to 501(c)(3) organizations may be deducted from
gross receipts or from governmental gross receipts if the sale is made to an
organization that delivers a nontaxable transaction certificate to the seller or provides
alternative evidence pursuant to Section 7-9-43 NMSA 1978. The buyer shall employ
the tangible personal property in the conduct of functions described in Section 501(c)(3)
and shall not employ the tangible personal property in the conduct of an unrelated trade
or business as defined in Section 513 of the United States Internal Revenue Code of
1986, as amended or renumbered.

# B.

The deduction provided by this section does not apply to receipts from selling
construction material, excluding tangible personal property, whether removable or non-
removable, that is or would be classified for depreciation purposes as three-year
property, five-year property, seven-year property or ten-year property, including indirect
costs related to the asset basis, by Section 168 of the Internal Revenue Code of 1986,
as that section may be amended or renumbered, or from selling metalliferous mineral
ore; except that receipts from selling construction material or from selling metalliferous
mineral ore to a 501(c)(3) organization that is organized for the purpose of providing
homeownership opportunities to low-income families may be deducted from gross
receipts. Receipts may be deducted under this subsection only if the buyer delivers a
nontaxable transaction certificate to the seller or provides alternative evidence pursuant
to Section 7-9-43 NMSA 1978. The buyer shall use the property in the conduct of
functions described in Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended, and shall not employ the tangible personal property in the conduct of an
unrelated trade or business, as defined in Section 513 of that code.

# C.

For the purposes of this section, "501(c)(3) organization" means an organization
that has been granted exemption from the federal income tax by the United States
commissioner of internal revenue as an organization described in Section 501(c)(3) of
the United States Internal Revenue Code of 1986, as amended or renumbered.