HOUSE BILL 465
54th legislature - STATE OF NEW MEXICO - first session, 2019
INTRODUCED BY
Javier Martínez
AN ACT
RELATING TO TAXATION; IMPOSING A JET FUEL EXCISE TAX PURSUANT TO THE ALTERNATIVE FUEL TAX ACT; DISTRIBUTING THE REVENUE FROM THAT TAX TO THE STATE AVIATION FUND; EXEMPTING JET FUEL FROM THE GOVERNMENTAL GROSS RECEIPTS TAX, THE GROSS RECEIPTS TAX AND THE COMPENSATING TAX; REPEALING CERTAIN DEDUCTIONS PURSUANT TO THE GROSS RECEIPTS AND COMPENSATING TAX ACT FOR JET FUEL.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994, Chapter 5, Section 2, as amended) is amended to read:
"7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to [four and seventy-nine hundredths percent of the taxable gross] the net receipts attributable to the [sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department] jet fuel excise tax.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to twenty-six hundredths percent of gasoline taxes, exclusive of penalties and interest, collected pursuant to the Gasoline Tax Act.
C. From July 1, 2013 through June 30, 2021, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to forty-six thousandths percent of the net receipts attributable to the gross receipts tax distributable to the general fund.
D. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund from the net receipts attributable to the gross receipts tax distributable to the general fund in an amount equal to:
(1) eighty thousand dollars ($80,000) monthly from July 1, 2007 through June 30, 2008;
(2) one hundred sixty-seven thousand dollars ($167,000) monthly from July 1, 2008 through June 30, 2009; and
(3) two hundred fifty thousand dollars ($250,000) monthly after July 1, 2009."
SECTION 2. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter 211, Section 15, as amended) is amended to read:
"7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, surcharges, penalties and interest imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes, fees, penalties and interest imposed pursuant to the Special Fuels Supplier Tax Act and the Alternative Fuel Tax Act less:
(1) the amount distributed to the state aviation fund pursuant to [Subsection] Subsections A and B of Section 7-1-6.7 NMSA 1978;
(2) the amount distributed to the motorboat fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;
(3) the amount distributed to municipalities and counties pursuant to Subsection A of Section 7-1-6.9 NMSA 1978;
(4) the amount distributed to the county government road fund pursuant to Section 7-1-6.19 NMSA 1978;
(5) the amount distributed to the local governments road fund pursuant to Section 7-1-6.39 NMSA 1978;
(6) the amount distributed to the municipalities pursuant to Section 7-1-6.27 NMSA 1978;
(7) the amount distributed to the municipal arterial program of the local governments road fund pursuant to Section 7-1-6.28 NMSA 1978;
(8) the amount distributed to a qualified tribe pursuant to a gasoline tax sharing agreement entered into between the secretary of transportation and the qualified tribe pursuant to the provisions of Section 67-3-8.1 NMSA 1978; and
(9) the amount distributed to the general fund pursuant to Section 7-1-6.44 NMSA 1978.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, interest and penalties from the Weight Distance Tax Act."
SECTION 3. Section 7-9-13.2 NMSA 1978 (being Laws 1992, Chapter 100, Section 3, as amended) is amended to read:
"7-9-13.2. EXEMPTION--GOVERNMENTAL GROSS RECEIPTS TAX-- RECEIPTS SUBJECT TO CERTAIN OTHER TAXES.--Exempted from the governmental gross receipts tax are receipts from transactions involving tangible personal property or services on which receipts or transactions the gross receipts tax, compensating tax, motor vehicle excise tax, gasoline tax, [special fuel tax] special fuel excise tax, jet fuel excise tax, oil and gas emergency school tax, resources tax, processors tax, service tax or the excise tax imposed under Section 66-12-6.1 NMSA 1978 is imposed."
SECTION 4. Section 7-9-26 NMSA 1978 (being Laws 1969, Chapter 144, Section 19, as amended) is amended to read:
"7-9-26. EXEMPTION--GROSS RECEIPTS AND COMPENSATING TAX-- FUEL.--Exempted from the gross receipts and compensating tax are the receipts from selling and the use of gasoline, special fuel, [or] alternative fuel or jet fuel on which the tax imposed by Section 7-13-3, [7-16-3 or] 7-16A-3 or 7-16B-4 NMSA 1978 [or the Alternative Fuel Tax Act] has been paid and not refunded."
SECTION 5. Section 7-16B-3 NMSA 1978 (being Laws 1995, Chapter 16, Section 3, as amended) is amended to read:
"7-16B-3. DEFINITIONS.--As used in the Alternative Fuel Tax Act:
A. "alternative fuel" means liquefied petroleum gas, compressed natural gas, liquefied natural gas or a water-phased hydrocarbon fuel emulsion consisting of a hydrocarbon base and water in an amount not less than twenty percent by volume of the total water-phased fuel emulsion, all of which may be used for the generation of power to propel a motor vehicle on the highways;
B. "alternative fuel distributor" means any person who delivers or dispenses alternative fuel into the supply tank of a motor vehicle;
[B.] C. "alternative fuel user" means any user who is a registrant, owner or operator of a motor vehicle propelled by alternative fuel;
[C.] D. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;
[D. "distributor" means any person who delivers or dispenses alternative fuel into the supply tank of a motor vehicle;]
E. "gallon" means:
(1) for liquid alternative fuel or jet fuel, the quantity of liquid necessary to fill a standard United States gallon liquid measure, which is approximately 3.785 liters; provided that:
(a) in the case of a water-phased hydrocarbon fuel emulsion, a gallon shall be measured only with respect to the hydrocarbon base portion of the emulsion and not to the water base portion; and
(b) in the case of liquefied natural gas, a gallon shall be 6.06 pounds of liquefied natural gas; or
(2) for nonliquid alternative fuel, one hundred fourteen cubic feet; provided that in the case of compressed natural gas, a gallon shall be 5.66 pounds or 126.67 standard cubic feet of compressed natural gas;
F. "gross vehicle weight" means the weight of a motor vehicle or a combination motor vehicle without load, plus the weight of any load on the motor vehicle;
G. "highway" means every road, highway, thoroughfare, street or way, including toll roads, generally open to the use of the public as a matter of right for the purpose of motor vehicle travel and notwithstanding that the same may be temporarily closed for the purpose of construction, reconstruction, maintenance or repair;
H. "jet fuel" means fuel specially prepared and sold for use in aircraft propelled by turbo-prop or jet-type engines;
I. "jet fuel distributor" means any person who delivers or dispenses jet fuel into the supply tank of aircraft propelled by turbo-prop or jet-type engines;
[H.] J. "motor vehicle" means any self-propelled vehicle or device subject to registration under Section 66-3-1 NMSA 1978 that is used or may be used on the public highways in whole or in part for the purpose of transporting persons or property and includes any connected trailer or semitrailer;
[I.] K. "person" means an individual or any other legal entity; "person" also means, to the extent permitted by law, any federal, state or other government or any department, agency or instrumentality of the state, county, municipality or any political subdivision thereof;
[J.] L. "registrant" means any person who has registered a motor vehicle pursuant to the laws of this state or of another state;
[K.] M. "sale" means any delivery, exchange, gift or other disposition;
[L.] N. "secretary" means the secretary of taxation and revenue or the secretary's delegate;
[M.] O. "supply tank" means any tank or other receptacle in which or by which fuel may be carried and supplied to the fuel-furnishing device or apparatus of the propulsion mechanism of a motor vehicle or an aircraft propelled by turbo-prop or jet-type engines when the tank or receptacle either contains alternative fuel or alternative fuel is delivered into it;
[N.] P. "use" means:
(1) the receipt or placing of alternative fuel by an alternative fuel user into the fuel supply tank of any motor vehicle registered, owned or operated by the alternative fuel user;
(2) the receipt or placing of jet fuel into the fuel supply tank of aircraft propelled by turbo-prop or jet-type engines;
[(2)] (3) the consumption by an alternative fuel user of alternative fuel in the propulsion of a motor vehicle on the highways of this state and any activity ancillary to that propulsion; or
[(3)] (4) the importation of alternative fuel in the fuel supply tank of any motor vehicle as fuel for the propulsion of the motor vehicle on the highways;
[O.] Q. "user" means any person other than the United States government or any of its agencies or instrumentalities; the state of New Mexico or any of its political subdivisions, agencies or instrumentalities; or an Indian nation, tribe or pueblo or any agency or instrumentality of an Indian nation, tribe or pueblo who uses alternative fuel to propel a motor vehicle on the highways; and
[P.] R. the definitions of "alternative fuel user" and "alternative fuel distributor" shall be construed so that a person may at the same time be an alternative fuel user and [a] alternative fuel distributor."
SECTION 6. Section 7-16B-4 NMSA 1978 (being Laws 1995, Chapter 16, Section 4, as amended) is amended to read:
"7-16B-4. IMPOSITION AND RATE OF TAX--[DENOMINATION AS] ALTERNATIVE FUEL EXCISE TAX--JET FUEL EXCISE TAX.--
A. For the privilege of distributing alternative fuel in this state, there is imposed an excise tax at [a rate provided in Subsection C of this section] the following rates on each gallon of alternative fuel distributed in New Mexico. [B.] The tax imposed by this section may be called the "alternative fuel excise tax". [C.] For each gallon of alternative fuel distributed in New Mexico, the tax [imposed by Subsection A of this section] shall be:
[(1) for the period beginning January 1, 1996 and ending December 31, 1997, three cents ($0.03) per gallon;
(2) for the period beginning January 1, 1998 and ending December 31, 1999, six cents ($0.06) per gallon;
(3) for the period beginning January 1, 2000 and ending December 31, 2001, nine cents ($0.09) per gallon;
(4) for the period beginning January 1, 2002 and ending June 30, 2014, twelve cents ($0.12) per gallon; and
(5) for the period beginning July 1, 2014 and thereafter:
(a)] (1) for alternative fuel that is compressed natural gas, thirteen and three-tenths cents ($.133) per gallon;
[(b)] (2) for alternative fuel that is liquefied natural gas, twenty and six-tenths cents ($.206) per gallon; and
[(c)] (3) for alternative fuel not described in [Subparagraph (a) or (b)] Paragraph (1) or (2) of this [paragraph] subsection, twelve cents ($.12) per gallon.
B. For the privilege of distributing jet fuel in this state, there is imposed an excise tax at a rate of five cents ($.05) on each gallon of jet fuel distributed in New Mexico. The tax imposed by this section may be called the "jet fuel excise tax".
[D.] C. Alternative fuel or jet fuel purchased for distribution shall not be subject to the alternative fuel excise tax or jet fuel excise tax at the time of purchase or acquisition, but the alternative fuel excise tax shall be due on any alternative fuel at the time it is dispensed or delivered into the supply tank of a motor vehicle that is operated on the highways of this state and the jet fuel excise tax shall be due on any jet fuel at the time it is dispensed or delivered into the supply tank of an aircraft propelled by turbo-prop or jet-type engines."
SECTION 7. Section 7-16B-5 NMSA 1978 (being Laws 1995, Chapter 16, Section 5) is amended to read:
"7-16B-5. EXEMPTIONS--ALTERNATIVE FUEL EXCISE TAX.--
A. Alternative fuel and jet fuel distributed to or used by the United States or any agency or instrumentality thereof for the exclusive use of the United States or any agency or instrumentality thereof is exempt from the [imposition of the alternative fuel excise tax] taxes imposed by the Alternative Fuel Tax Act.
B. Alternative fuel and jet fuel distributed to or used by the state of New Mexico or any political subdivision, agency or instrumentality thereof for the exclusive use of the state of New Mexico or any political subdivision, agency or instrumentality thereof is exempt from the [imposition of the alternative fuel excise tax] taxes imposed pursuant to the Alternative Fuel Tax Act.
C. Alternative fuel or jet fuel distributed to or used by an Indian nation, tribe or pueblo or any agency or instrumentality thereof for the exclusive use of the Indian nation, tribe or pueblo or any agency or instrumentality thereof is exempt from the [imposition of the alternative fuel excise tax] taxes imposed pursuant to the Alternative Fuel Tax Act."
SECTION 8. Section 7-16B-6 NMSA 1978 (being Laws 1995, Chapter 16, Section 6) is amended to read:
"7-16B-6. TAX RETURNS--PAYMENT OF TAX--[ALTERNATIVE FUEL] DISTRIBUTORS.--
A. Alternative fuel distributors and jet fuel distributors shall file [alternative fuel excise] tax returns in form and content as prescribed by the secretary on or before the twenty-fifth day of the month following the month in which alternative fuel or jet fuel is distributed in New Mexico. Payment of the [alternative fuel excise] tax shall be made with or prior to filing of the return.
B. In computing the [alternative fuel excise] tax due, amounts of alternative fuel distributed to an alternative fuel user may be deducted from the total amount of alternative fuel distributed in New Mexico during the tax period, provided the alternative fuel user can establish proof of compliance with the provisions of Section [7 of the Alternative Fuel Tax Act] 7-16B-7 NMSA 1978."
SECTION 9. Section 7-16B-8 NMSA 1978 (being Laws 1995, Chapter 16, Section 8) is amended to read:
"7-16B-8. [ALTERNATIVE FUEL] DISTRIBUTOR LICENSE REQUIRED.--
A. The department shall issue a license valid for up to three years to each alternative fuel distributor or jet fuel distributor upon the filing of an application by the [alternative fuel] distributor acceptable to the department.
B. To secure [an alternative fuel] a distributor license, an applicant shall:
(1) register as an alternative fuel distributor [under] or jet fuel distributor pursuant to the provisions of Section 7-1-12 NMSA 1978;
(2) file with the department on a form furnished by the department an application for [an alternative fuel] a distributor license; and
(3) accompany the application with payment of [an alternative fuel] a distributor fee in the amount of twenty-five dollars ($25.00).
C. The department may revoke, after due notice and hearing, the [alternative fuel] distributor license of any [alternative fuel] distributor found to be in violation of any provision of the Alternative Fuel Tax Act."
SECTION 10. Section 7-16B-9 NMSA 1978 (being Laws 1995, Chapter 16, Section 9) is amended to read:
"7-16B-9. DELIVERY AND USE OF ALTERNATIVE FUEL OR JET FUEL--PROHIBITED ACTS.--It is a violation of the Alternative Fuel Tax Act to:
A. operate a motor vehicle upon the highways of this state with a connection between a cargo or other tank or container, not considered in the Alternative Fuel Tax Act as being the motor vehicle's fuel supply tank, and a carburetor or other fuel supply device. Fuel supply tanks, including auxiliary fuel supply tanks, shall be separate and apart from cargo tanks or other containers, with no connection by pipe, tube, valve or otherwise;
B. sell or deliver to any person alternative fuel or jet fuel from any [alternative fuel] supply tank or auxiliary [alternative fuel] supply tank;
C. deliver alternative fuel from a cargo tank into the [alternative fuel] supply tank of a motor vehicle; provided, however, delivery of liquefied alternative [fuels] fuel may be made into the [alternative fuel] supply tank of a motor vehicle by a registered and licensed alternative fuel distributor when made by that distributor from the cargo tank of a vehicle operated by that distributor, which tank is specially designed to make this type of alternative fuel delivery; [or]
D. deliver jet fuel from a cargo tank into the supply tank of an aircraft propelled by turbo-prop or jet-type engines; provided, however, delivery of jet fuel may be made into the supply tank of such aircraft by a registered jet fuel distributor when made by that distributor from the cargo tank of an aircraft operated by that distributor, which tank is specially designed to make this type of jet fuel delivery; or
[D.] E. engage in the business of distributing alternative fuel or jet fuel in New Mexico without obtaining [an alternative fuel distributor] a license [under] pursuant to the provisions of Section [8 of the Alternative Fuel Tax Act]
7-16B-8 NMSA 1978."
SECTION 11. Section 7-16B-10 NMSA 1978 (being Laws 1995, Chapter 16, Section 10) is amended to read:
"7-16B-10. ADMINISTRATION AND ENFORCEMENT OF ACT.--The department shall interpret the provisions of the Alternative Fuel Tax Act. The department shall administer and enforce the collection of the [alternative fuel excise tax] taxes imposed pursuant to the Alternative Fuel Tax Act, and the Tax Administration Act applies to the administration and enforcement of the Alternative Fuel Tax Act."
SECTION 12. REPEAL.--Sections 7-9-83 and 7-9-84 NMSA 1978 (being Laws 1993, Chapter 364, Sections 1 and 2, as amended) are repealed.
SECTION 13. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.
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