Do non-profits have to pay gross receipts tax?
It's a common question. The short answer is no and yes. No 501(c)(3) & 501(c)(6) organizations do not pay gross receipts tax on tangibles they purchase. To take advantage of this exemption they must provide the seller with a nontaxable transaction Type 9. Yes Purchases of services by
501(c)(3) & 501(c)(6)organizations are subject to gross receipts
tax. (See FYI 103 page 6 & Brochure 4 page 2 under What a Nonprofit
May Buy) The sometimes unexpected taxation
of services sold to 501(c)(3)'s & & 501(c)(6)'s is one of the
aspects of N.M. gross receipts tax law that is different from most other
states' sales tax. |