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New Mexico Tax Commission Recommends Changes To Non-Profit & Charitable Organizations

Monday, September 8, 2003

Last week, the subcommittees of the New Mexico Blue Ribbon Tax Commission (BRC) submitted to the full Commission their final recommendations and options for changes to the state`s tax laws to cover a proposed $300 million income tax cut and elimination of the tax on most foodstuffs. One option put forth by the Equity Committee would remove the exemption for receipts of 501(c)(3) and (c)(6) entities. The increased paperwork and tax burden resulting from such a change could severely impact the fundraising operations of many non-profit and charitable organizations, such as the NRA Foundation and your local Friends of NRA Committees. At a time when charitable giving is already down, the state would be asking these groups` volunteers to shoulder an additional bureaucratic burden. This would only serve to discourage participation in many civic groups that perform invaluable public services. Unless the Commission members hear from you, this misguided proposal could find its way into legislation that will be debated in Santa Fe during a special session of the legislature later this fall. The Commission will meet and debate any proposed changes to 501(c)(3) group status on September 10-11. Please call your state lawmakers and tell them that any form of tax could cripple 501(c)(3)s.  Please forward this information to any other sportsmen`s group or community service organization to which you or your family members belong that may be impacted by such a proposed change. This could include the Boy Scouts, Girl Scouts, veterans groups, gun clubs, wildlife associations, and church-based organizations. Thank you for your time and efforts!   
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Established in 1975, the Institute for Legislative Action (ILA) is the "lobbying" arm of the National Rifle Association of America. ILA is responsible for preserving the right of all law-abiding individuals in the legislative, political, and legal arenas, to purchase, possess and use firearms for legitimate purposes as guaranteed by the Second Amendment to the U.S. Constitution.