New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 212 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX
Section 3.2.212.25 - FEDERAL CREDIT UNIONS ARE GOVERNMENTAL INSTRUMENTALITIES BUT STATE CREDIT UNIONS ARE NOT
Current through Register Vol. 35, No. 18, September 24, 2024
A. Federal courts have ruled that credit unions chartered under the Federal Credit Union Act are instrumentalities of the federal government. See United States v. Maine, 524 F. Supp. 1056 (D. Me. 1981) and United States v. Michigan, 851 F.2d 803 (6th Cir. 1988). Therefore persons who sell tangible personal property to federal credit unions are entitled to the deduction provided by Section 7-9-54 NMSA 1978.
B. Although Section 58-11-61 NMSA 1978 exempts from gross receipts tax the receipts of a credit union organized under or subject to the Credit Union Regulatory Act to the same extent that the receipts of a credit union chartered under federal law are exempt, the receipts of a vendor who sells tangible personal property to credit unions organized under or subject to the Credit Union Regulatory Act are not deductible under Section 7-9-54 NMSA 1978. The gross receipts tax is imposed on the receipts of the vendor; it is not imposed on the credit union. Credit unions organized under or subject to the Credit Union Regulatory Act are not instrumentalities of the federal government and no statute or judicial determination makes them instrumentalities of New Mexico. A vendor's receipts from selling tangible personal property to state-chartered credit unions, however, may be deductible under Section 7-9-61.2 NMSA 1978. This version of Subsection B of Section 3.2.212.25 NMAC applies to transactions occurring on or after July 1, 2000.
C. Section 3.2.212.25 NMAC is applicable to transactions on or after July 1, 1997.
