HOUSE BILL 547

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Nathan P. Cote

AN ACT

RELATING TO TAXATION; PROVIDING GROSS RECEIPTS TAX AND COMPENSATING TAX DEDUCTIONS FOR LOCOMOTIVE ENGINE FUEL.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS TAX--LOCOMOTIVE ENGINE FUEL.--On or after July 1, 2009, receipts from the sale of fuel to a common carrier for use in a locomotive engine may be deducted from gross receipts. For the purposes of this section, "locomotive engine" means a wheeled vehicle consisting of a self-propelled engine that is used to draw trains along railway tracks."

     Section 2. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--COMPENSATING TAX--LOCOMOTIVE ENGINE FUEL.--On or after July 1, 2009, the value of fuel used by a common carrier in a locomotive engine may be deducted in computing the compensating tax due. For the purposes of this section, "locomotive engine" means a wheeled vehicle consisting of a self-propelled engine that is used to draw trains along railway tracks."

- 2 -