Current through Register Vol. 35, No. 18, September 24, 2024
A. 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.
