HB 199

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AN ACT

RELATING TO SPECIAL FUELS; ELIMINATING SPECIAL BULK STORAGE

USER PERMITS AND A SPECIAL FUEL EXCISE TAX DEDUCTION FOR

SPECIAL BULK STORAGE USER PERMIT HOLDERS; AMENDING AND

REPEALING SECTIONS OF THE NMSA 1978.

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

Section 1. 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

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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 dyed in accordance with federal

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regulations; and

F. special fuel that is number 2 diesel fuel sold

for the generation of power to propel a vehicle authorized by

contract with the public education department as a school bus;

provided that the fuel has a distillation temperature of five

hundred degrees Fahrenheit at a ten percent recovery point and

six hundred forty degrees Fahrenheit at a ninety percent

recovery point."

Section 2. Section 7-16A-13.1 NMSA 1978 (being Laws

2001, Chapter 43, Section 2, as amended) is amended to read:

"7-16A-13.1. CLAIM FOR REFUND OF SPECIAL FUEL EXCISE

TAX PAID ON SPECIAL FUEL.--

A. Upon the submission of proof satisfactory to

the department, a user of special fuel may submit and the

department may allow a claim for refund of tax paid on special

fuel used to propel a vehicle authorized by contract with the

public education department as a school bus, to propel a

vehicle off-road, to operate auxiliary equipment by a power

take-off from the main engine or transmission of a vehicle or

to operate a non-automotive apparatus mounted on a vehicle

when the special fuel used for such purposes and the special

fuel used to propel the vehicle on the highways are drawn from

a common supply tank. The vehicle must be registered with the

department. The user must be registered with the department

for purposes of reporting and paying gross receipts tax.

B. No person may submit claims for refund pursuant

to the provisions of this section more frequently than

quarterly. No claim for refund may be submitted or allowed on

less than one hundred gallons.

C. The department may prescribe the documents

necessary to support a claim for refund pursuant to the

provisions of this section. The department may prescribe the

use of types of monitoring or measuring equipment.

D. This section applies to special fuel purchased

on or after July 1, 2001, except for the refund for special

fuel used to propel a school bus, which applies to special

fuel purchased on or after July 1, 2005."

Section 3. REPEAL.--Section 7-16A-8 NMSA 1978 (being

Laws 1992, Chapter 51, Section 8, as amended) is repealed. HB 199

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