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

RELATING TO TAXATION; PROVIDING FOR ADDITIONAL DEDUCTIONS PURSUANT TO THE GASOLINE TAX ACT AND THE SPECIAL FUELS SUPPLIER TAX ACT.

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

Section 1. A new section of the Gasoline Tax Act is enacted to read:

"[NEW MATERIAL] ADDITIONAL DEDUCTIONS.--In computing the gasoline tax due, the following amounts of gasoline may be deducted from the total amount of gasoline received in New Mexico during the tax period, provided satisfactory proof thereof is furnished to the department:

A. gasoline received in New Mexico but lost or destroyed by fire, lightning, flood, tornado, windstorm, explosion or other casualty;

B. gasoline received in New Mexico for which the taxpayer was not paid and the account has been determined to be worthless and claimed as a bad debt deduction for federal income tax purposes;

C. one percent of the total number of gallons of gasoline received during the tax period, to reimburse the taxpayer for the expenses incurred on behalf of the state in collecting and remitting the gasoline tax and preparing and maintaining reports and records for purposes of the Gasoline Tax Act; and

D. one percent of the total number of gallons of gasoline received during the tax period, to cover the shrinkage, evaporation, spillage and handling losses of retailers. The deduction in this subsection shall be allowed only upon filing with the report to the department for the tax period evidence satisfactory to the department that the taxpayer has made a corresponding credit allowance or payment to the retailer for such losses. A distributor who sells and delivers gasoline directly to the consumer and not for resale shall with respect to those sales be deemed a retailer for purposes of this subsection."

Section 2. Section 7-16A-10 NMSA 1978 (being Laws 1992, Chapter 51, Section 10, as amended) is amended to read:

"7-16A-10. DEDUCTIONS--SPECIAL FUEL EXCISE TAX--SPECIAL FUEL SUPPLIERS.--In computing the tax due, the following amounts of special fuel may be deducted from the total amount of special fuel received in New Mexico during the tax period, provided that satisfactory proof thereof is furnished to the department:

A. special fuel received in New Mexico, but exported from this state by a rack operator, special fuel supplier or dealer, other than in the fuel supply tank of a motor vehicle or sold for export by a rack operator or distributor; provided that, in either case:

(1) the person exporting the special fuel is registered in or licensed by the destination state to pay that state's special fuel or equivalent fuel tax;

(2) proof is submitted that the destination state's special fuel or equivalent fuel tax has been paid or is not due with respect to the special fuel; or

(3) the destination state's special fuel or equivalent fuel tax is paid to New Mexico in accordance with the terms of an agreement entered into pursuant to Section

9-11-12 NMSA 1978 with the destination state;

B. special fuel sold to the United States or any agency or instrumentality thereof for the exclusive use of the United States or any agency or instrumentality thereof. Special fuel sold to the United States includes special fuel delivered into the supply tank of a government-licensed vehicle;

C. special fuel sold to 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. Special fuel sold to the state of New Mexico includes special fuel delivered into the supply tank of a government-licensed vehicle;

D. special fuel sold to 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. Special fuel sold to an Indian nation, tribe or pueblo includes special fuel delivered into the supply tank of a government-licensed vehicle;

E. special fuel sold to the holder of a special bulk storage user permit and delivered into special bulk storage pursuant to the provisions of Section 7-16A-8 NMSA 1978; [and]

F. special fuel dyed in accordance with federal regulations and used in any manner other than for propulsion of motor vehicles on the highways of this state or activities ancillary to that propulsion;

G. special fuel lost or destroyed by fire, lightning, flood, tornado, windstorm, explosion or other casualty;

H. special fuel for which the taxpayer was not paid and the account has been determined to be worthless and claimed as a bad debt deduction for federal income tax purposes;

I. one percent of the total number of gallons of special fuel received during the tax period, to reimburse the taxpayer for the expenses incurred on behalf of the state in collecting and remitting the special fuel excise tax and preparing and maintaining reports and records for purposes of the Special Fuels Supplier Tax Act; and

J. one percent of the total number of gallons of special fuel received during the tax period, to cover the shrinkage, evaporation, spillage and handling losses of a dealer. The deduction in this subsection shall be allowed only upon filing with the report to the department for the tax period evidence satisfactory to the department that the taxpayer has made a corresponding credit allowance or payment to the dealer for such losses. A supplier who sells and delivers special fuel directly to the user and not for resale shall with respect to those sales be deemed a dealer for purposes of this subsection."

Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.