Quote:LAS CRUCES - A Santa Fe District Court judge on Tuesday ruled in favor of New Mexico State University in a lawsuit against the state of New Mexico and the Taxation and Revenue Department over taxes paid on out-of-state road games. If the ruling stands, it could have a ripple effect on how other New Mexico universities report the income.

Last December, NMSU filed the complaint in Santa Fe’s First Judicial District Court. Demesia Padilla, secretary of Taxation and Revenue, also was named in the suit. The university was seeking a refund for what it said was overpayment of taxes between December 2011 and December 2014, arguing that revenue generated through out-of-state road games constitutes interstate commerce and, as such, is not subject to the state’s Governmental Gross Receipts Tax.

According to the complaint, NMSU claims it “erroneously” paid $282,747 in taxes on about $5.6 million generated through out-of-state athletic events during the period in dispute. In June 2015, the school filed a request for a refund which the department rejected in November.

Link

ULM AD: "Hey NMSU, you think you could help us pay for this UNM Game, since you have some extra cash lying around?"

(09-22-2016 07:39 AM)The4thOption Wrote:  ULM AD: "Hey NMSU, you think you could help us pay for this UNM Game, since you have some extra cash lying around?"

With an expected need to cut 5 percent or more due to lower than the state projected from oil and gas taxes, NMSU surely has ways to use the money themselves.

how stupid is a state that taxes the income of the athletics program of their own state university

(09-22-2016 10:07 AM)TodgeRodge Wrote:  how stupid is a state that taxes the income of the athletics program of their own state university

That would be the great state of New Mexico.

If/when we get the money it will actually go to the state to pay off a debt that NMSU owes them. Just will not go to the Taxation department.

Haven't they heard that higher education is a non-profit institution? :D

(09-22-2016 01:11 PM)CrimsonPhantom Wrote:  

(09-22-2016 10:07 AM)TodgeRodge Wrote:  how stupid is a state that taxes the income of the athletics program of their own state university

That would be the great state of New Mexico.

If/when we get the money it will actually go to the state to pay off a debt that NMSU owes them. Just will not go to the Taxation department.

Which is ironic.

The tax is not an income tax but a gross receipts tax and it's aimed exclusively at government entities. So a private school wouldn't have to pay it. Basically, if a local or state government collects revenues (not taxes) from things like parking or concessions, water apparently then 5% of it goes to the State. What's really ironic to me, in the little that I read about it is a good chunk of this money goes to a fund set up to loan these same municipalities money for infrastructure projects. It's basically a way of allowing smaller municipalities within NM access to the tax free bond market at rates they wouldn't otherwise be able to get. This tax supplements the fund keeping it nice and solvent so the rates stay low. There's other things done with the tax as well but this seemed to be a big chunk of it.

So basically. NM is taxing it's towns, cities, schools, etc. on their revenues so they can loan it back to them. NMST likely borrowed from this fund and owes it money but was also paying to it from these away games (and other athletic revenue I'm sure). So NMST petitioned to get this tax money back from this fund so it pay it back to the fund and NM fought them in court over it. Wow.

(09-22-2016 05:27 PM)mturn017 Wrote:  

(09-22-2016 01:11 PM)CrimsonPhantom Wrote:  

(09-22-2016 10:07 AM)TodgeRodge Wrote:  how stupid is a state that taxes the income of the athletics program of their own state university

That would be the great state of New Mexico.

If/when we get the money it will actually go to the state to pay off a debt that NMSU owes them. Just will not go to the Taxation department.

Which is ironic.

The tax is not an income tax but a gross receipts tax and it's aimed exclusively at government entities. So a private school wouldn't have to pay it. Basically, if a local or state government collects revenues (not taxes) from things like parking or concessions, water apparently then 5% of it goes to the State. What's really ironic to me, in the little that I read about it is a good chunk of this money goes to a fund set up to loan these same municipalities money for infrastructure projects. It's basically a way of allowing smaller municipalities within NM access to the tax free bond market at rates they wouldn't otherwise be able to get. This tax supplements the fund keeping it nice and solvent so the rates stay low. There's other things done with the tax as well but this seemed to be a big chunk of it.

So basically. NM is taxing it's towns, cities, schools, etc. on their revenues so they can loan it back to them. NMST likely borrowed from this fund and owes it money but was also paying to it from these away games (and other athletic revenue I'm sure). So NMST petitioned to get this tax money back from this fund so it pay it back to the fund and NM fought them in court over it. Wow.

No. The money NMSU owes the state goes back to paying off money that was given to NMSU to help it get into the WAC. The money was outlined in the state budget. If money came from a fund for NMSU, UNM would have thrown a fit. Also the tax was not applied until 2011, 6 years after NMSU got into the WAC.

(09-22-2016 06:29 PM)CrimsonPhantom Wrote:  

(09-22-2016 05:27 PM)mturn017 Wrote:  

(09-22-2016 01:11 PM)CrimsonPhantom Wrote:  

(09-22-2016 10:07 AM)TodgeRodge Wrote:  how stupid is a state that taxes the income of the athletics program of their own state university

That would be the great state of New Mexico.

If/when we get the money it will actually go to the state to pay off a debt that NMSU owes them. Just will not go to the Taxation department.

Which is ironic.

The tax is not an income tax but a gross receipts tax and it's aimed exclusively at government entities. So a private school wouldn't have to pay it. Basically, if a local or state government collects revenues (not taxes) from things like parking or concessions, water apparently then 5% of it goes to the State. What's really ironic to me, in the little that I read about it is a good chunk of this money goes to a fund set up to loan these same municipalities money for infrastructure projects. It's basically a way of allowing smaller municipalities within NM access to the tax free bond market at rates they wouldn't otherwise be able to get. This tax supplements the fund keeping it nice and solvent so the rates stay low. There's other things done with the tax as well but this seemed to be a big chunk of it.

So basically. NM is taxing it's towns, cities, schools, etc. on their revenues so they can loan it back to them. NMST likely borrowed from this fund and owes it money but was also paying to it from these away games (and other athletic revenue I'm sure). So NMST petitioned to get this tax money back from this fund so it pay it back to the fund and NM fought them in court over it. Wow.

No. The money NMSU owes the state goes back to paying off money that was given to NMSU to help it get into the WAC. The money was outlined in the state budget. If money came from a fund for NMSU, UNM would have thrown a fit. Also the tax was not applied until 2011, 6 years after NMSU got into the WAC.

Well I did some speculating. I'm not familiar with NM govt or taxation really. It just seemed strange that a state school would be paying this kind of tax and after reading about it even stranger that it's only for governmental entities. The fund is really a way of borrowing money for capital projects, I'm sure UNM and NMST both have used it for such but I just speculated that it's where the money that needed to be paid back came from. The tax, also speculating, was probably assessed prior to 2011 but that's as far back as they can claim a refund due to statutes of limitation. The article noted 2011-2014, 3 years statute is pretty standard for tax issues like these in federal and many states. The tax it seems will continue to be paid on revenues collected on home events.

Still it seems like a lot of moving money from your left hand to your right then slapping that hand with your left. Good ruling for your school though so cheers

(09-21-2016 10:06 PM)CrimsonPhantom Wrote:  

Quote:LAS CRUCES - A Santa Fe District Court judge on Tuesday ruled in favor of New Mexico State University in a lawsuit against the state of New Mexico and the Taxation and Revenue Department over taxes paid on out-of-state road games. If the ruling stands, it could have a ripple effect on how other New Mexico universities report the income.

Last December, NMSU filed the complaint in Santa Fe’s First Judicial District Court. Demesia Padilla, secretary of Taxation and Revenue, also was named in the suit. The university was seeking a refund for what it said was overpayment of taxes between December 2011 and December 2014, arguing that revenue generated through out-of-state road games constitutes interstate commerce and, as such, is not subject to the state’s Governmental Gross Receipts Tax.

According to the complaint, NMSU claims it “erroneously” paid $282,747 in taxes on about $5.6 million generated through out-of-state athletic events during the period in dispute. In June 2015, the school filed a request for a refund which the department rejected in November.

Link

Sounds like someone in Finance at NMSU didn't do their job from 2011 to 2014.