45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO TAXATION; EXEMPTING REPLACEMENT VEHICLES FROM THE LEASED VEHICLE SURCHARGE; AMENDING THE LEASED VEHICLE GROSS RECEIPTS TAX ACT.

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

Section 1. Section 7-14A-3.1 NMSA 1978 (being Laws 1993, Chapter 359, Section 1) is amended to read:

"7-14A-3.1. IMPOSITION AND RATE--LEASED VEHICLE SURCHARGE.--

A. Except as provided in Subsection B of this section, there is imposed a surcharge on the leasing of a vehicle to another person by a person engaging in business in New Mexico if the lease is subject to the leased vehicle gross receipts tax. The amount of this surcharge is two dollars ($2.00) for each day each vehicle is leased by the person. The surcharge may be referred to as the "leased vehicle surcharge".

B. The leased vehicle surcharge imposed in Subsection A of this section shall not apply to replacement vehicles. For purposes of this section, "replacement vehicle" means a vehicle that is:

(1) rented temporarily by or on behalf of an individual or loaned to an individual by a motor vehicle repair facility or dealer; and

(2) used by the individual in place of a motor vehicle owned by the individual that is unavailable for use due to mechanical breakdown, repair, service, damage or loss as defined in the individual's applicable private passenger automotive insurance policy."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.