HOUSE BILL 626

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

James R.J. Strickler

AN ACT

RELATING TO TAXATION; PROVIDING FOR DEDUCTIONS WITH RESPECT TO CERTAIN GALLONS OF GASOLINE AND SPECIAL FUEL RECEIVED PURSUANT TO THE GASOLINE TAX ACT AND SPECIAL FUELS SUPPLIER TAX ACT; PROVIDING FOR A DEDUCTION WITH RESPECT TO CERTAIN GALLONS OF GASOLINE OR SPECIAL FUEL LOADED PURSUANT TO THE PETROLEUM PRODUCTS LOADING FEE ACT.

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

     SECTION 1. Section 7-13-4 NMSA 1978 (being Laws 1991, Chapter 9, Section 32, as amended) is amended to read:

     "7-13-4. DEDUCTIONS--GASOLINE TAX.--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 exported from this state by a rack operator, distributor or wholesaler 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 gasoline is registered in or licensed by the destination state to pay that state's gasoline or equivalent fuel tax;

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

                (3) the destination state's gasoline 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. gasoline received in New Mexico sold to the United States or an agency or instrumentality thereof for the exclusive use of the United States or an agency or instrumentality thereof. Gasoline sold to the United States includes gasoline delivered into the supply tank of a government-licensed vehicle of the United States;

          C. gasoline received in New Mexico sold to an Indian nation, tribe or pueblo or a political subdivision, agency or instrumentality of that Indian nation, tribe or pueblo for the exclusive use of the Indian nation, tribe or pueblo or a political subdivision, agency or instrumentality thereof. Gasoline sold to an Indian nation, tribe or pueblo includes gasoline delivered into the supply tank of a government-licensed vehicle of the Indian nation, tribe or pueblo;

          D. gasoline received in New Mexico, dyed in accordance with department regulations and used in a manner other than for propulsion of motor vehicles on the highways of this state or motorboats or activities ancillary to that propulsion;

          E. gasoline received in New Mexico and sold at retail by a registered Indian tribal distributor if:

                (1) the sale occurs on the Indian reservation, pueblo grant or trust land of the distributor's Indian nation, tribe or pueblo;

                (2) the gasoline is placed into the fuel supply tank of a motor vehicle on that reservation, pueblo grant or trust land; and

                (3) the Indian nation, tribe or pueblo has certified to the department that it has in effect an excise, privilege or similar tax on the gasoline; provided that the volume of gasoline deducted pursuant to this subsection shall be the total gallons sold in accordance with the provisions of this subsection multiplied by a fraction the numerator of which is the rate of the tribal tax certified to the department by the Indian nation, tribe or pueblo and the denominator of which is the rate of the gasoline tax imposed pursuant to the Gasoline Tax Act, but if the fraction exceeds one, it shall be one for purposes of determining the deduction;

           F. gasoline received in New Mexico and sold by a registered Indian tribal distributor from a nonmobile storage container located within that distributor's Indian reservation, pueblo grant or trust land for resale outside that distributor's Indian reservation, pueblo grant or trust land; provided the department certifies that the distributor claiming the deduction sold no less than one million gallons of gasoline from a nonmobile storage container located within that distributor's Indian reservation, pueblo grant or trust land for resale outside that distributor's Indian reservation, pueblo grant or trust land during the period of May through August 1998; and provided further that the amount of gasoline deducted by a registered Indian tribal distributor pursuant to this subsection shall not exceed two million five hundred thousand gallons per month, calculated as a monthly average during the calendar year. Volumes deducted pursuant to Subsection E of this section shall not be deducted pursuant to this subsection; [and]

          G. gasoline received in New Mexico on which New Mexico gasoline tax was paid by the out-of-state terminal at which the gasoline was loaded, provided that documentation that the gasoline was to be imported into New Mexico was provided to the terminal operator by the person receiving the fuel; and

          H. gasoline previously received in New Mexico by another taxpayer pursuant Section 7-13-2.1 NMSA 1978, upon which the gasoline tax has been paid by that other taxpayer."

     SECTION 2. Section 7-13A-2 NMSA 1978 (being Laws 1990, Chapter 124, Section 15, as amended) is amended to read:

     "7-13A-2. DEFINITIONS.--As used in the Petroleum Products Loading Fee Act:

          A. "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;

          B. "distributor" means any person registered or required to be registered as a rack operator or distributor for purposes of the Gasoline Tax Act and any person registered or required to be registered as a rack operator or special fuel supplier for purposes of the Special Fuels Supplier Tax Act;

          C. "gallon" means the quantity of liquid necessary to fill a standard United States gallon liquid measure, which is approximately 3.785 liters, or that same quantity adjusted to a temperature of sixty degrees Fahrenheit at the election of any distributor, but a distributor shall report on the same basis for a period of at least one year;

          D. "load" means eight thousand gallons of petroleum product;

          E. "loading" means the act of placing or causing to be placed any petroleum product that is produced, refined, manufactured, blended or compounded at a refinery in this state or stored at a pipeline terminal in this state into tank cars, tank trucks, tank wagons or other types of transportation equipment or into any tank or other container from which sales or deliveries not involving transportation are made;

          F. "person" means an individual or any other legal entity, including any gas, water or electric utility owned or operated by a county, municipality or other political subdivision of the state. "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;

          G. "petroleum product" means gasoline as defined in the Gasoline Tax Act and special fuel as defined in the Special Fuels Supplier Tax Act; [and]

          H. "secretary" means, unless the context indicates another meaning, the secretary of taxation and revenue or the secretary's delegate; [and]

          I. "taxpayer" means a person liable for payment of the petroleum products loading fee; and

          [I.] J. "unobligated balance of the corrective action fund" means corrective action fund equity less all known or anticipated liabilities against the fund."

     SECTION 3. A new section of the Petroleum Products Loading Fee Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--PETROLEUM PRODUCTS LOADING FEE.--In computing the petroleum products loading fee due, there may be deducted from the gallons of gasoline or special fuel loaded in New Mexico or imported into New Mexico an amount equal to the number of gallons of the same fuel upon which the petroleum products loading fee was previously paid by another taxpayer."

     SECTION 4. Section 7-16A-2 NMSA 1978 (being Laws 1992, Chapter 51, Section 2, as amended) is amended to read:

     "7-16A-2. DEFINITIONS.--As used in the Special Fuels Supplier Tax Act:

          A. "bulk storage" means the storage of special fuels in any tank or receptacle, other than a supply tank, for the purpose of sale by a dealer or for use by a user or for any other purpose;

          B. "bulk storage user" means a user who operates, owns or maintains bulk storage in this state from which the user places special fuel into the supply tanks of motor vehicles owned or operated by that user;

          C. "dealer" means any person who sells and delivers special fuel to a user;

          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;

          E. "government-licensed vehicle" means a motor vehicle lawfully displaying a registration plate, as defined in the Motor Vehicle Code issued by:

                (1) the United States or any state, identifying the motor vehicle as belonging to the United States or any of its agencies or instrumentalities;

                (2) the state of New Mexico, identifying the vehicle as belonging to the state of New Mexico or any of its political subdivisions, agencies or instrumentalities; or

                (3) any state, identifying the motor vehicle as belonging to an Indian nation, tribe or pueblo or an agency or instrumentality thereof;

          F. "gross vehicle weight" means the weight of a motor vehicle or combination motor vehicle without load, plus the weight of any load on the 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. "motor vehicle" means any self-propelled vehicle or device that is either subject to registration pursuant to Section 66-3-1 NMSA 1978 or 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. "person" means an individual or any other entity, including, to the extent permitted by law, any federal, state or other government or any department, agency, instrumentality or political subdivision of any federal, state or other government;

          J. "rack operator" means the operator of a refinery in this state, any person who blends special fuel in this state or the owner of special fuel stored at a pipeline terminal in this state;

          K. "registrant" means any person who has registered a motor vehicle pursuant to the laws of this state or of another state;

          L. "retailer" means a person who sells special fuel generally in quantities of less than two hundred fifty gallons and delivers the special fuel into the supply tanks of motor vehicles;

          M. "sale" means any delivery, exchange, gift or other disposition;

          N. "secretary" means the secretary of taxation and revenue or the secretary's delegate;

          O. "special fuel" means any diesel-engine fuel or kerosene used for the generation of power to propel a motor vehicle, except for gasoline, liquefied petroleum gas, compressed or liquefied natural gas and products specially prepared and sold for use in aircraft propelled by turbo-prop or jet engines;

          P. "special fuel user" means any user who is a registrant, owner or operator of a motor vehicle using special fuel and having a gross vehicle weight in excess of twenty-six thousand pounds;

          Q. "state" or "jurisdiction" means a state, territory or possession of the United States, the District of Columbia, the commonwealth of Puerto Rico, a foreign country or a state or province of a foreign country;

          R. "supplier" means any person, but not including a rack operator or the United States or any of its agencies except to the extent now or hereafter permitted by the constitution of the United States and laws thereof, who receives special fuel;

          S. "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 when the tank or receptacle either contains special fuel or special fuel is delivered into it;

          T. "tax" means the special fuel excise tax imposed pursuant to the Special Fuels Supplier Tax Act, and, with respect to a special fuel user, "tax" includes any special fuel tax paid to another jurisdiction pursuant to a cooperative agreement to which the state is a party pursuant to Section 9-11-12 NMSA 1978;

          U. "taxpayer" means a person liable for the payment of the excise tax imposed pursuant to Section 7-16A-3 NMSA 1978;

          [U.] V. "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 special fuel to propel a motor vehicle on the highways; and

          [V.] W. "wholesaler" means a person who is not a supplier and who sells special fuel in quantities of two hundred fifty gallons or more and does not deliver special fuel into the supply tanks of motor vehicles."

     SECTION 5. A new section of the Special Fuels Supplier Tax Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--SPECIAL FUEL EXCISE TAX--FUEL PREVIOUSLY RECEIVED.--In computing the tax due, special fuel previously received in New Mexico by another taxpayer pursuant to Section 7-16A-2.1 NMSA 1978 upon which the special fuel excise tax has been paid by that other taxpayer 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."

     SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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