Sometimes in life no matter how complicated things may seem, it all boils down to “if” and “then.” Right now there’s a big “if” that warrants our immediate response. New Mexico – if House Bill 412 is passed and signed into law – then our state’s nonprofit organizations are going to have far less dollars to serve those who need our help.
The House Bill 412 is designed to reform and simplify Gross Receipts Tax. It has passed in the House unanimously and is gaining momentum. If it does pass 1) nonprofits will lose their exemption from state Gross Receipts Tax – 2) nonprofits will have to pay Gross Receipts Tax on the “receipts” from fundraising events. Two events will be exempt, any more than two will be subject to tax – and 3) nonprofits performing services for the state will have to pay Sales Tax on the contracts.
To quote a very dear and wise friend of mine “Nonprofits are under assault.” We are stretched to the max and having to pay a Sales Tax will stretch us even more. Paying taxes on the very fundraising events that help us do the important work we do is bogus. And, paying a Sales Tax on the contracts we have with the state to do what we all do to serve the most vulnerable New Mexicans – REALLY?? Government can not provide the quality of service to people that nonprofits provide, and Special Olympics New Mexico can not endure potentially paying over $70,000 in taxes.
This is a call to action. We have until Friday – this bill is being rushed through. Contact your Senator and House Representative to let them know how House Bill 412 will hurt our nonprofits and our communities. If you aren’t sure who to call – go the NM Legislature website and check Find My Legislator. Call them – email them – tell them HB 412 Section 95 and Section 107 need to be amended.