A. No municipal gross receipts tax shall be imposed on the gross receipts arising from:
1. The transmission of messages by wire or other means from one point within the municipality to another point outside of the municipality;
2. Transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the municipality to another point outside the municipality; or
3. A business located outside the boundaries of a municipality on land owned by that municipality for which a gross receipts tax distribution is made pursuant to paragraph (3) of subsection D of Section 72-13-24, New Mexico Statutes Annotated, 1953.
B. Exempted from the municipal gross receipts tax are those receipts exempted in paragraphs 1 through 23 of this subsection B of Section 3.16.080.
1. Agricultural Products.
a. Exempted from the municipal gross receipts tax are the receipts of growers, producers, trappers or nonprofit marketing associations from selling livestock, live poultry, unprocessed agricultural products, hides or pelts. Persons engaged in the business of buying and selling wool or mohair or of buying and selling livestock on their own account are producers for the purposes of this section.
b. Receipts from selling dairy products at retail are not exempted from the municipal gross receipts tax.
2. Banks and Financial Corporations. Exempted from the municipal gross receipts tax are the receipts of banks and financial corporations from selling or leasing property or services in the course of their regular banking and financial corporation functions.
3. Certain Nonprofit Facilities. Exempted from the municipal gross receipts tax are the receipts of non-profit entities from the operation of facilities designed and used for providing accommodations for retired elderly persons.
4. Certain Organizations. Exempted from the municipal gross receipts tax are the receipts of organizations that demonstrate to the bureau that they have been granted exemption from the federal income tax by the United States Commissioner of Internal Revenue as organizations described in Section 501(c)(3) of the United States Internal Revenue Code of 1954, as amended or renumbered. This section does not apply to receipts derived from an unrelated trade or business as defined in Section 513 of the United States Internal Revenue Code of 1954, as amended or renumbered.
5. Dividends and Interest. Exempted from the municipal gross receipts tax are the receipts received as interest on money loaned or deposited, receipts received as dividends or interest from stocks, bonds or securities or receipts from the sale of stocks, bonds or securities.
6. Fees from Social Organizations.
a. Exempted from the gross receipts tax are the receipts from dues and registration fees of nonprofit social, fraternal, political, trade, labor or professional organizations and business leagues.
b. For the purposes of this section:
i. “Dues” means amounts that a member of an organization pays at recurring intervals to retain membership in an organization where such amounts are used for the general maintenance and upkeep of the organization; and
ii. “Registration fees” means amounts paid by persons to attend a specific event sponsored by an organization to defray the cost of the event.
7. Fuel. Exempted from the municipal gross receipts tax are the receipts from selling and the use of gasoline or special fuel on which the tax imposed by Section 72-27-3 New Mexico Statutes Annotated, 1953 or Section 64-26-68 New Mexico Statutes Annotated, 1953 has been paid and not refunded.
8. Governmental Agencies.
a. Exempted from the municipal gross receipts tax are the receipts of the United States or any agency or instrumentality thereof or the state of New Mexico or any political subdivision thereof.
b. Receipts from the sale of gas, water or electricity by a utility owned or operated by a county, municipality or other political subdivision of the state are not exempted from the municipal gross receipts tax.
9. Insurance Companies. Exempted from the municipal gross receipts tax are the receipts of insurance companies or any agent thereof from premiums.
10. Livestock Feeding.
a. Exempted from the municipal gross receipts tax are the receipts of any person derived from feeding or pasturing livestock.
b. Receipts derived from penning or handling livestock prior to sale are receipts derived from feeding livestock for the purposes of this section.
c. Receipts derived from training livestock are receipts derived from feeding livestock for the purposes of this section.
11. Occasional Sale of Property or Services. Exempted from the municipal gross receipts tax are the receipts from the isolated or occasional sale of or leasing of property or a service by a person who is neither regularly engaged nor holding himself out as engaged in the business of selling or leasing the same or similar property or service.
12. Oil and Gas Consumed in the Pipeline Transportation of Oil and Gas Products. Exempted from the municipal gross receipts tax are receipts from the sale of oil, natural gas, liquid hydrocarbon or any combination thereof consumed as fuel in the pipeline transportation of such products.
13. Oil and Gas or Mineral Interests. Exempted from the municipal gross receipts tax are the receipts from the sale of or leasing of oil, natural gas or mineral interests.
14. Persons Subject to Oil and Gas Emergency School Tax Act.
a. When a privilege tax is imposed by the Oil and Gas Emergency School Tax Act, the provisions of such act shall apply and determine the full measure of tax liability for the privilege of engaging in the business stated in the act, and no provision of this chapter shall apply to or create a tax liability for such privilege; except that any person engaging in business of severing oil, natural gas or liquid hydrocarbons from the soil of this state, who sells oil, natural gas or liquid hydrocarbons other than for subsequent resale in the ordinary course of business or for use as an ingredient or component part of a manufactured product is subject to this chapter as to those sales, as well as to the Oil and Gas Emergency School Tax Act.
b. No provision of this chapter shall apply to the storage of oil, natural gas or liquid hydrocarbons, individually or any combination thereof, or to the use of such products for fuel in the operation of a “production unit” as defined by the Oil and Gas Emergency School Tax Act.
15. Persons Subject to the Resources Excise Tax Act. When a privilege tax is imposed by the Resources Excise Tax Act, the provisions of the act shall apply and determine the full measure of tax liability for the privilege of engaging in the business stated in the act and no provision of this chapter shall apply to or create a tax liability for such privilege except in the same manner as is provided in Section 72-16A-27 New Mexico Statutes Annotated, 1953 in regard to the New Mexico Gross Receipts and Compensating Tax Act.
16. Purses and Jockey Remuneration at New Mexico Racetracks. Exempted from the municipal gross receipts tax are the receipts of horsemen, jockeys and trainers from purses at New Mexico horse racetracks subject to taxes levied under Section 60-6-9 New Mexico Statutes Annotated, 1953.
17. Refiners and Persons Subject to Natural Gas Processors Tax Act.
a. When a privilege tax is imposed by the Natural Gas Processors Tax Act, the provisions of the act shall apply and determine the full measure of tax liability for the privilege of engaging in the business stated in the act and no provision of this chapter shall apply to or create a tax liability for such privilege, except that any producer or processor of natural gas or liquid hydrocarbons who sells natural gas or liquid hydrocarbons other than for subsequent resale in the ordinary course of business or for use as an ingredient or component part of a manufactured product is subject to this chapter as to those sales, as well as to the Natural Gas Processors Tax Act.
b. No provision of this chapter shall apply to the storage or use of oil, natural gas or liquid hydrocarbons, individually or any combination thereof, when stored or used by a “processor,” as defined by the Natural Gas Processors Tax Act, or by a person engaged in the business of refining oil, natural gas or liquid hydrocarbons, who stores or uses the oil, natural gas or liquid hydrocarbons in the regular course of his refining business.
18. Religious Activities. Exempted from the municipal gross receipts tax are the receipts of a minister of a religious organization, which organization has been granted an exemption from federal income tax by the United States Commissioner of Internal Revenue as an organization described in Section 501(c)(3) of the United States Internal Revenue Code of 1954, as amended or renumbered, from religious service provided by the minister to an individual recipient of the service.
19. Resale activities of an Armed Forces Instrumentality. Exempted from the municipal gross receipts tax are the receipts from selling tangible personal property and the use of property by any instrumentality of the Armed Forces of the United States engaged in resale activities.
20. Temporary Provisions. Exempted from the municipal gross receipts tax are receipts from contracts entered into prior to April 10, 1975, which do not permit an increase in price to cover the municipal gross receipts tax and which are registered with the Bureau of Revenue as provided by the commissioner. Such receipts shall be taxed according to the laws existing prior to April 10, 1975.
21. Theatrical and Television Films and Tapes. Exempted from the municipal gross receipts tax are the receipts from the leasing or licensing of theatrical and television films and tapes of any kind.
22. Vehicles. Exempted from the municipal gross receipts tax are the receipts from selling vehicles on which a tax is imposed by Section 64-11-15 New Mexico Statutes Annotated, 1953 and on vehicles subject to registration under Section 64-3-12.3 New Mexico Statutes Annotated, 1953.
23. Wages. Exempted from the municipal gross receipts tax are the receipts of employees from wages, salaries, commissions or from any other form of remuneration for personal services. (Ord. 1101-78 § 8, 1978).