New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 239 - DEDUCTION - GROSS RECEIPTS TAX - FUNDRAISING
Section 3.2.239.12 - IDENTIFICATION OF FUNDRAISING EVENTS

A. Each organization may deduct under Section 7-9-85 NMSA 1978 the receipts of two fundraising events conducted during a calendar year. If an organization conducts more than two fundraising events during a calendar year, the first two fundraising events will be presumed to be those qualifying for the deduction provided by Section 7-9-85 NMSA 1978 unless the organization has identified in writing in advance the two fundraising events for which the organization intends to claim the deduction prior to conducting any fundraising event during the calendar year.

B. Example 1: A civic league, exempt from federal income tax under Section 501(c)(4) of the Internal Revenue Code, sponsors the following activities each calendar year:

C. Each of these activities qualifies as a fundraising event. However, only the receipts from the button sale and the indoor track meet may be deducted under Section 7-9-85 NMSA 1978. The civic league must pay gross receipts tax on the receipts from the fireworks display and the art fair.

D. Example 2: The same facts as Example 1, except that the civic league adopts a resolution in January identifying the track meet and the fireworks display as the two fundraising events for which the civic league intends to claim the deduction provided in Section 7-9-85 NMSA 1978. The receipts from the track meet and the fireworks display may be deducted under Section 7-9-85 NMSA 1978. The civic league must pay gross receipts tax on the receipts from the button sale and the art fair.

E. Example 3: The same facts as Example 1, except that the civic league adopts a resolution at their meeting on the last Thursday of February identifying the track meet and the fireworks display as the two fundraising events for which the civic league intends to claim the deduction provided in Section 7-9-85 NMSA 1978. Because the resolution was not adopted prior to the first fundraising event sponsored by the civic league, the receipts from the button sale and the track meet may be deducted under Section 7-9-85 NMSA 1978. The civic league must pay gross receipts tax on the receipts from the fireworks display and the art fair.

F. The requirement for written advance identification can be satisfied by adopting a resolution to be retained in the permanent records of the organization or reflecting the decision in the minutes or other permanent records of the organization. The written identification must include, at a minimum:

G. The written advance identification must be retained by the organization and provided to the department on request.