HB0202

HOUSE BILL 202

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

Roberto "Bobby" J. Gonzales

AN ACT

RELATING TO TAXATION; CHANGING THE BASIS OF THE GASOLINE TAX AND THE SPECIAL FUEL EXCISE TAX FROM NUMBER OF GALLONS SOLD TO VALUE OF FUEL SOLD.

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

SECTION 1. Section 7-13-3 NMSA 1978 (being Laws 1971, Chapter 207, Section 3, as amended) is amended to read:

"7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GASOLINE TAX".--

A. For the privilege of receiving gasoline in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of gasoline received in New Mexico.

B. The tax imposed by Subsection A of this section shall be [seventeen cents ($.17) per gallon received in New Mexico] seven and two-tenths percent of the total amount of money or of the value of other consideration received per gallon received in New Mexico.

C. The tax imposed by this section may be called the "gasoline tax"."

SECTION 2. Section 7-13-3.1 NMSA 1978 (being Laws 1979, Chapter 166, Section 7, as amended) is amended to read:

"7-13-3.1. GASOLINE INVENTORY TAX--IMPOSITION OF TAX--DATE PAYMENT OF TAX DUE.--

A. A gasoline inventory tax is imposed measured by the quantity of gallons of gasoline in the possession of a distributor or wholesaler on the day in which an increase in the excise tax imposed by Section 7-13-3 NMSA 1978 is effective. The taxable event is the existence of an inventory in the possession of a distributor or wholesaler on the day prior to the day in which an increase in the excise tax imposed by Section 7-13-3 NMSA 1978 is effective. The rate of the gasoline inventory tax to apply on each gallon of gasoline held in inventory by a distributor or wholesaler, as provided in Section 7-13-3.2 NMSA 1978, shall be the difference between the gasoline excise tax rate imposed on the day prior to the day in which the gasoline excise tax is increased subtracted from the gasoline excise tax rate imposed on the day that the gasoline excise tax rate increase is effective [expressed in cents per gallon].

B. The department shall publish a table converting the percentage tax in Section 7-13-3 NMSA 1978 to an equivalent cents-per-gallon tax for use when necessary to calculate the rate of the gasoline inventory tax pursuant to this section.

[B.] C. The gasoline inventory tax is to be paid to the department on or before the twenty-fifth day of the month following the month in which the taxable event occurs."

SECTION 3. Section 7-16A-3 NMSA 1978 (being Laws 1992, Chapter 51, Section 3, as amended) is amended to read:

"7-16A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS SPECIAL FUEL EXCISE TAX.--

A. For the privilege of receiving or using special fuel in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of special fuel received in New Mexico.

B. The tax imposed by Subsection A of this section shall be [twenty-one cents ($.21) per gallon of special fuel received or used in New Mexico] eight and seven-tenths percent of the total amount of money or of the value of other consideration received per gallon received or used in New Mexico.

C. The tax imposed by this section may be called the "special fuel excise tax"."

SECTION 4. Section 7-16A-4 NMSA 1978 (being Laws 1992, Chapter 51, Section 4) is amended to read:

"7-16A-4. SPECIAL FUEL INVENTORY TAX--IMPOSITION OF TAX--DATE PAYMENT OF TAX DUE.--

A. A "special fuel inventory tax" is imposed measured by the quantity of gallons of special fuel in the possession of a supplier or bulk storage user on the day in which an increase in the special fuel excise tax rate is effective. The taxable event is the existence of an inventory in the possession of a supplier or bulk storage user on the day prior to the day in which an increase in the special fuel excise tax rate is effective. The rate of the special fuel inventory tax applicable to each gallon of special fuel held in inventory by a supplier or bulk storage [use] user, as provided in Section [5 of the Special Fuels Supplier Tax Act] 7-16A-5 NMSA 1978, shall be the difference between the special fuel excise tax rate imposed on the day prior to the day in which the special fuel excise tax rate is increased, subtracted from the special fuel excise tax rate imposed on the day in which the special fuel excise tax rate increase is effective [expressed in cents per gallon].

B. The department shall publish a table converting the percentage tax in Section 7-16A-3 NMSA 1978 to an equivalent cents-per-gallon tax for use when necessary to calculate the rate of the special fuel inventory tax pursuant to this section.

[B.] C. The special fuel inventory tax is to be paid to the department on or before the twenty-fifth day of the month following the month in which the taxable event occurs."

SECTION 5. Section 7-16A-6 NMSA 1978 (being Laws 1992, Chapter 51, Section 6) is amended to read:

"7-16A-6. SPECIAL FUEL INVENTORY TAX REFUND.--

A. A "special fuel inventory tax refund" is established measured by the quantity of gallons of special fuel in the possession of a supplier or bulk storage user on the day in which a decrease in the special fuel excise tax rate is effective. The refund event is the existence of an inventory in the possession of a supplier or bulk storage user on the day prior to the day in which a decrease in the special fuel excise tax rate is effective. The refund is to be calculated by determining the difference between the special fuel excise tax rate imposed on the day prior to the day in which the special fuel excise tax rate is decreased, subtracted from the special fuel excise tax rate imposed on the day in which the special fuel excise tax rate decrease is effective [expressed in cents per gallon]. The refund rate so determined is then multiplied by each gallon in inventory as determined under Section [5 of the Special Fuels Supplier Tax Act] 7-16A-5 NMSA 1978.

SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.

- 6 -