New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 218 - IMPOSITION AND RATE OF GOVERNMENTAL GROSS RECEIPTS TAX
Section 3.2.218.8 - SALE TO A 501(c)(3) ORGANIZATION

Receipts from selling tangible personal property to organizations which demonstrate to the department that they have been granted an exemption from federal income tax as an organization described in Section 501(c)(3) of the United States Internal Revenue Code of 1954, Section 501(c)(3) of the United States Internal Revenue Code of 1986 or Section 101(6) of the United States Internal Revenue Code of 1939 may be deducted from the seller's gross receipts if the buyer delivers a nontaxable transaction certificate (nttc) to the seller and if the tangible personal property sold is employed by the 501(c)(3) organization in its ordinary functions. Receipts from the sale of tangible personal property to a 501(c)(3) or 101(6) organization which are employed 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, or Section 422(b) of the United States Internal Revenue Code of 1939, may not be deducted pursuant to Section 7-9-60 NMSA 1978. If the 501(c)(3) organization delivering the nttc employs the property purchased in the conduct of an unrelated trade or business, the compensating tax is due.