N.M. Admin. Code § 3.2.108.9
Current through Register Vol. 35, No. 23, December 10, 2024
Section 3.2.108.9 - RECEIPTS OTHER THAN MEMBERSHIP FEES, DUES OR ASSESSMENTSA. The receipts of any homeowner association from the sale or lease of property to any individual, whether or not the individual is a member of the association, are not exempt from the gross receipts tax under Section 7-9-20 NMSA 1978. The receipts of any homeowner association from the sale of a service performed solely for the benefit of an individual, whether or not the individual is a member of the association, are not exempt from the gross receipts tax under Section 7-9-20 NMSA 1978 when the service is not performed on common areas served or controlled by the association.B. The following examples illustrate the application of Section 7-9-20 NMSA 1978. (1) Example 1: Association A maintains vending and other coin operated machines for the convenience of its members and their guests. The receipts which Association A receives from the operation of the coin operated machines are not exempt from gross receipts tax under the provisions of Section 7-9-20 NMSA 1978. Association A will be liable for gross receipts tax on any sale of tangible personal property through vending machines and on any service provided by coin operated machines.(2) Example 2: Association B owns and operates a golf course for the sole use by its members and their guests. Association B also rents golf carts on a per use basis. Its receipts from the rental of the golf carts are not received as membership fees, dues or assessments from members for payment of taxes, insurance, utility expenses, management or improvement, maintenance or rehabilitation of common areas, elements or facilities. The receipts from the rental of the golf carts are subject to the gross receipts tax.(3) Example 3: Association C has contracted to paint the interior and exterior of an individual member's residence. The maintenance of an individual's residence is not maintenance of common areas, elements or facilities. Therefore, Association C's receipts used for painting the member's individual property are subject to the gross receipts tax and are not exempt under Section 7-9-20 NMSA 1978.N.M. Admin. Code § 3.2.108.9
3/8/91, 11/15/96; 3.2.108.9 NMAC - Rn, 3 NMAC 2.20.9 & A, 5/15/01