HB0173

HOUSE BILL 173

54th legislature - STATE OF NEW MEXICO - second session, 2020

INTRODUCED BY

Matthew McQueen

AN ACT

RELATING TO TAXATION; IMPOSING A GASOLINE SURTAX AND SPECIAL FUEL EXCISE SURTAX; INCREASING AND INDEXING THE SURTAXES; DISTRIBUTING THE REVENUE FROM THE SURTAXES TO THE STATE ROAD FUND, A NEW CLEAN INFRASTRUCTURE FUND AND A NEW GASOLINE AND SPECIAL FUEL EXCISE SURTAX LOW-INCOME REBATE FUND; CREATING THE GASOLINE AND SPECIAL FUEL EXCISE SURTAX LOW-INCOME REBATE; MAKING AN APPROPRIATION.

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

SECTION 1. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter 211, Section 15, as amended) is amended to read:

"7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, [surcharges, penalties and interest imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes] not including the gasoline surtax and the special fuel excise surtax, and to the fees, penalties and interest imposed pursuant to the Gasoline Tax Act, the Special Fuels Supplier Tax Act and the Alternative Fuel Tax Act less:

(1) the amount distributed to the state aviation fund pursuant to Subsection B of Section 7-1-6.7 NMSA 1978;

(2) the amount distributed to the motorboat fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;

(3) the amount distributed to municipalities and counties pursuant to Subsection A of Section 7-1-6.9 NMSA 1978;

(4) the amount distributed to the county government road fund pursuant to Section 7-1-6.19 NMSA 1978;

(5) the amount distributed to the local governments road fund pursuant to Section 7-1-6.39 NMSA 1978;

(6) the amount distributed to the municipalities pursuant to Section 7-1-6.27 NMSA 1978;

(7) the amount distributed to the municipal arterial program of the local governments road fund pursuant to Section 7-1-6.28 NMSA 1978;

(8) the amount distributed to a qualified tribe pursuant to [a gasoline tax sharing agreement entered into between the secretary of transportation and the qualified tribe pursuant to the provisions] Subsection A of Section [67-3-8.1] 7-1-6.44 NMSA 1978; and

(9) the amount distributed to the general fund pursuant to Subsection B of Section 7-1-6.44 NMSA 1978.

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, interest and penalties from the Weight Distance Tax Act."

SECTION 2. A new section of the Tax Administration Act is enacted to read:

"[NEW MATERIAL] DISTRIBUTION--GASOLINE SURTAX--SPECIAL FUEL EXCISE SURTAX.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made of the net receipts attributable to the gasoline surtax and the special fuel excise surtax as follows, rounded in accordance with standard accounting rules:

A. one-third of each surtax to the state road fund;

B. one-third of each surtax to the clean infrastructure fund; and

C. one-third of each surtax, plus any remainder, to the gasoline and special fuel excise surtax low-income rebate fund."

SECTION 3. A new section of the Income Tax Act is enacted to read:

"[NEW MATERIAL] GASOLINE AND SPECIAL FUEL EXCISE SURTAX LOW-INCOME REBATE.--

A. For taxable years beginning on or after January 1, 2021, a taxpayer who is a resident and who files an individual New Mexico income tax return and who is not a dependent of another individual is entitled to a rebate pursuant to this section for a portion of gasoline and special fuel excise surtaxes passed on to the resident, regardless of whether the resident has taxable income for that taxable year. The rebate provided by this section may be cited as the "gasoline and special fuel excise surtax low-income rebate".

B. Except as provided in Subsection C of this section, the rebate provided in this section may be claimed in the amounts shown in the following table:

Modified gross

income is:

% Over But Rebate amount for a taxable year

federal not beginning on or after:

poverty over 2021 2022 2023 2024 2025

guidelines

400% 500% $0 $25 $40 $55 $70

300% 400% 50 75 100 125 150

200% 300% 100 150 200 250 300

100% 200% 125 190 255 320 385

0% 100% 150 225 300 375 450.

C. If a taxpayer's modified gross income is zero or less, the taxpayer may claim a rebate in the amount shown in the last row of the table.

D. A taxpayer shall claim the gasoline and special fuel excise surtax low-income rebate on forms and in a manner as prescribed by the department.

E. The department shall compile an annual report on the gasoline and special fuel excise surtax low-income rebate that shall include the number of residents approved by the department to receive the rebate, the aggregate amount of rebates approved and any other information necessary to evaluate the rebate. The department shall compile and present the annual report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the rebate.

F. For purposes of this section, "federal poverty guidelines" means the level of income defining poverty by family size published annually in the federal register by the United States department of health and human services."

SECTION 4. Section 7-13-2.1 NMSA 1978 (being Laws 1999, Chapter 190, Section 2) is amended to read:

"7-13-2.1. WHEN GASOLINE RECEIVED AND BY WHOM.--

A. Gasoline that is produced, refined, manufactured, blended or compounded at a refinery in this state or stored at a pipeline terminal in this state by a person is received by that person when it is loaded there into tank cars, tank trucks, tank wagons or other types of transportation equipment, or when it is placed there into a tank or other container from which sales or deliveries not involving transportation are made; however:

(1) when gasoline is delivered at the refinery or pipeline terminal to a person registered as a distributor pursuant to the Gasoline Tax Act, then it is received there by the distributor to whom it is delivered at the time of the delivery;

(2) when gasoline is delivered at the refinery or pipeline terminal to a person not registered as a distributor pursuant to the Gasoline Tax Act for the account of a person that is registered as a distributor, it is received there by the distributor for whose account it is delivered at the time of delivery; and

(3) gasoline is not received when it is shipped from one refinery or pipeline terminal to another refinery or pipeline terminal.

B. Gasoline imported into New Mexico by any means other than in the fuel supply tank of a motor vehicle or by pipeline is received at the time and place it is imported into this state. The person who owns the gasoline at the time of importation receives the gasoline at the time and place of importation unless the gasoline is delivered to a person who is registered as a distributor pursuant to the Gasoline Tax Act, in which case the distributor is deemed to have received the gasoline at the time and place of importation.

C. Any product other than gasoline that is blended in this state to produce gasoline other than at a refinery or pipeline terminal is received by the person who is the owner of the gasoline at the time and place the blending is completed.

D. If gasoline is received within the exterior boundaries of an Indian reservation or pueblo grant and the gasoline tax or gasoline surtax is not paid with respect to the gasoline by the person receiving the gasoline within the exterior boundaries of the Indian reservation or pueblo grant, the gasoline is also received when the gasoline is transported off the reservation or pueblo grant by any means other than in the fuel supply tank of a motor vehicle. In such a case, the person who owns the gasoline immediately after the time of transportation off the reservation or pueblo grant or, if the gasoline is delivered to a person registered as a distributor pursuant to the Gasoline Tax Act, the distributor receives the gasoline at the time and place the gasoline is transported off the reservation or pueblo grant."

SECTION 5. 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 GASOLINE TAX--[DENOMINATION AS "GASOLINE TAX"] IMPOSITION AND RATE OF GASOLINE SURTAX.--

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] of seventeen cents ($.17) 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.

C.] The tax imposed by this [section] subsection may be [called] cited as the "gasoline tax".

B. In addition to the gasoline tax, a surtax is imposed, which may be cited as the "gasoline surtax", at the following rates on each gallon of gasoline received in New Mexico:

(1) beginning July 1, 2021 and prior to July 1, 2022, ten cents ($.10);

(2) beginning July 1, 2022 and prior to July 1, 2023, fifteen cents ($.15);

(3) beginning July 1, 2023 and prior to July 1, 2024, twenty cents ($.20);

(4) beginning July 1, 2024 and prior to July 1, 2025, twenty-five cents ($.25);

(5) beginning July 1, 2025 and prior to July 1, 2026, thirty cents ($.30); and

(6) beginning July 1, 2026, the rate determined pursuant to Subsection C of this section.

C. No later than April 30, 2026 and April 30 of each subsequent year, the department shall calculate the rate of gasoline surtax to be imposed as of July 1 of that year. The rate of the surtax per gallon shall be equal to the product, rounded down to the nearest whole cent, of thirty cents ($.30) multiplied by a fraction with a numerator equal to the consumer price index for the previous calendar year and a denominator equal to the consumer price index for calendar year 2024; provided that the rate shall not be adjusted to less than the rate imposed in the previous fiscal year.

D. As used in this section, "consumer price index" means the consumer price index for all urban consumers as published by the United States bureau of labor statistics."

SECTION 6. 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] the sum of the rates of the gasoline tax and the gasoline surtax 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] gasoline tax and gasoline surtax 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 sum of the rates of the gasoline [excise] tax [rate] and the gasoline surtax imposed on the day prior to the day in which the [gasoline excise tax] the sum of the rates is increased subtracted from the [gasoline excise tax rate] sum of the rates imposed on the day that the [gasoline excise tax rate] increase is effective, expressed in cents per gallon.

B. 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 7. Section 7-13-3.2 NMSA 1978 (being Laws 1979, Chapter 166, Section 8, as amended) is amended to read:

"7-13-3.2. GASOLINE INVENTORIES.--

A. On the day prior to the day that the [excise tax imposed by Section 7-13-3 NMSA 1978] sum of the rates of the gasoline tax and the gasoline surtax is increased, each distributor, wholesaler and retailer shall take inventory of the gallons of gasoline on hand.

B. Distributors and wholesalers shall report total gallons of gasoline in inventory on the day prior to the day that an increase in the [gasoline tax rate] sum of the rates of the gasoline tax and the gasoline surtax is effective and pay any tax due imposed by Section 7-13-3.1 NMSA 1978.

C. Retailers shall maintain a record of the total gallons of gasoline in inventory on the day prior to the day that an increase in the sum of the rates of the gasoline tax [rate] and the gasoline surtax is effective and shall not increase the price of the gasoline sold until the inventory is disposed of in the ordinary course of business."

SECTION 8. Section 7-13-3.5 NMSA 1978 (being Laws 1997, Chapter 192, Section 3) is amended to read:

"7-13-3.5. BOND REQUIRED OF TAXPAYERS.--

A. Except as provided in Subsection H of this section, every taxpayer shall file with the department a bond on a form approved by the attorney general with a surety company authorized by the [state corporation commission] office of superintendent of insurance to transact business in this state as a surety and upon which bond the taxpayer is the principal obligor and the state the obligee. The bond shall be conditioned upon the prompt filing of true reports and the payment by the taxpayer to the department of all taxes levied by the Gasoline Tax Act, together with all applicable penalties and interest thereon.

B. In lieu of the bond, the taxpayer may elect to file with the department cash or bonds of the United States or New Mexico or of any political subdivision of the state.

C. The total amount of the bond, cash or securities required of any taxpayer shall be fixed by the department and may be increased or reduced by the department at any time, subject to the limitations provided in this section.

D. In fixing the total amount of the bond, cash or securities required of any taxpayer required to post bond, the department shall require an equivalent in total amount to at least two times the amount of the department's estimate of the taxpayer's monthly gasoline tax and gasoline surtax, determined in such manner as the secretary may deem proper; provided, however, the total amount of bond, cash or securities required of a taxpayer shall never be less than one thousand dollars ($1,000).

E. In the event the department decides that the amount of the existing bond, cash or securities is insufficient to insure payment to this state of the amount of the gasoline tax and gasoline surtax and any penalties and interest for which the taxpayer is or may at any time become liable, [then] the taxpayer, upon written demand of the department mailed to the last known address of the taxpayer as shown on the records of the department, shall file an additional bond, cash or securities in the manner, form and amount determined by the department to be necessary to secure at all times the payment by the taxpayer of all taxes, penalties and interest due under the Gasoline Tax Act.

F. A surety on a bond furnished by a taxpayer as required by this section shall be released and discharged from all liability accruing on the bond after the expiration of ninety days from the date upon which the surety files with the department a written request to be released and discharged; provided, however, that such request shall not operate to release or discharge the surety from any liability already accrued or that shall accrue before the expiration of the ninety-day period, unless a new bond is filed during the ninety-day period, in which case the previous bond may be canceled as of the effective date of the new bond. On receipt of notice of such request, the department promptly shall notify the taxpayer who furnished the bond that the taxpayer, on or before the expiration of the ninety-day period, shall file with the department a new bond with a surety satisfactory to the department in the amount and form required in this section.

G. The taxpayer required to file bond with or provide cash or securities to the department in accordance with this section and who is required by another state law to file another bond with or provide cash or securities to the department may elect to file a combined bond or provide cash or securities applicable to the provisions of both this section and the other law, with the approval of the secretary. The amount of the combined bond, cash or securities shall be determined by the department, and the form of the combined bond shall be approved by the attorney general.

H. Every taxpayer who, for the twenty-four month period immediately preceding July 1, 1994, has not been a delinquent taxpayer pursuant to the Gasoline Tax Act is exempt from the requirement pursuant to this section to file a bond. A taxpayer required to file a bond pursuant to the provisions of this section who, for a twenty-four consecutive month period ending after July 1, 1994, has not been a delinquent taxpayer pursuant to the Gasoline Tax Act may request to be exempt from the requirement to file a bond beginning with the first day of the first month following the end of the twenty-four month period. If a taxpayer exempted pursuant to this subsection subsequently becomes a delinquent taxpayer under the Gasoline Tax Act, the department may terminate the exemption and require the filing of a bond in accordance with this section. If the department terminates the exemption, the termination shall not be effective any earlier than ten days after the date the department notifies the taxpayer in writing of the termination."

SECTION 9. 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 and gasoline surtax 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] sum of the rates of the gasoline tax and the gasoline surtax 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 and gasoline surtax 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."

SECTION 10. Section 7-13-4.4 NMSA 1978 (being Laws 2000, Chapter 50, Section 1) is amended to read:

"7-13-4.4. ADDITIONAL DEDUCTION--CERTAIN RETAIL SALES ON AN INDIAN RESERVATION, PUEBLO GRANT OR TRUST LAND.--In computing the gasoline tax and gasoline surtax due, a person other than a registered Indian tribal distributor may deduct from the total amount of gasoline received in New Mexico during the tax period, provided satisfactory proof is provided to the department, gasoline received in New Mexico and sold at retail in New Mexico if:

A. the sale occurs on an Indian reservation, pueblo grant or trust land;

B. the gasoline is placed into the fuel supply tank of a motor vehicle on that reservation, pueblo grant or trust land;

C. the Indian nation, tribe or pueblo has certified to the department that it has in effect an excise, privilege or similar tax on gasoline; provided that the gallons of gasoline deducted pursuant to this section shall be the total gallons sold in accordance with the provisions of this section 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] sum of the rates of the gasoline tax and the gasoline surtax imposed pursuant to the Gasoline Tax Act, but, if the fraction exceeds one, the fraction shall be deemed to be one for purposes of determining the deduction; and

D. the person is subject to and in compliance with the tax on gasoline imposed by the Indian nation, tribe or pueblo where the sale occurs."

SECTION 11. Section 7-13-5 NMSA 1978 (being Laws 1971, Chapter 207, Section 5, as amended) is amended to read:

"7-13-5. TAX RETURNS--PAYMENT OF TAX.--Distributors shall file [gasoline] tax returns in form and content as prescribed by the secretary on or before the twenty-fifth day of the month following the month in which gasoline is received in New Mexico. Such returns shall be accompanied by payment of the amount of gasoline tax and gasoline surtax due. The department may require that the tax returns be provided through electronic means as long as an exception is provided for distributors with limited amounts of fuel distributed."

SECTION 12. Section 7-13-8 NMSA 1978 (being Laws 1971, Chapter 207, Section 8, as amended) is amended to read:

"7-13-8. MISDEMEANOR FOR ANYONE OTHER THAN PRODUCER, REFINER OR PIPELINE COMPANY TO TRANSPORT OR STORE DRIP GASOLINE--MISDEMEANOR TO USE DRIP GASOLINE IN VEHICLE OPERATED ON HIGHWAYS OF THIS STATE--ENFORCEMENT BY STATE POLICE--MAGISTRATE COURT JURISDICTION.--

A. Any person other than a recognized producer, refiner or pipeline company who transports or stores drip gasoline in New Mexico without having in [his] the person's possession an instrument in writing issued and signed by a recognized seller of gasoline stating the names and addresses of the seller and purchaser, the date of sale and the amount sold and price paid therefor shall, upon conviction thereof, be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) or confined in the county jail for a period of not longer than six months, or both, together with costs of prosecution.

B. Whoever uses drip gasoline in a motor vehicle operated on the highways of this state shall, upon conviction thereof, be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) or confined in the county jail for a period of not longer than six months, or both, together with costs of prosecution.

C. The New Mexico state police shall have the responsibility of enforcing the provisions of this section.

D. Jurisdiction over actions brought under this section is granted to magistrate courts."

SECTION 13. Section 7-13-12 NMSA 1978 (being Laws 1971, Chapter 207, Section 11, as amended) is amended to read:

"7-13-12. MANIFEST OR BILL OF LADING REQUIRED WHEN TRANSPORTING GASOLINE.--Every person transporting gasoline from a refinery or pipeline terminal in this state, importing gasoline into this state or exporting gasoline from this state, other than by pipeline or in the fuel supply tanks of motor vehicles, shall carry a manifest or bill of lading in form and content as prescribed by or acceptable to the department. The manifest or bill of lading shall be signed by the consignor and by every person accepting the gasoline or any part of it, with a notation as to the amount accepted. If a manifest or bill of lading is not required to be carried by the terms of this section, any person transporting gasoline without such a manifest or bill of lading shall, upon demand, furnish proof acceptable to the department that the gasoline so transported was legally acquired by a registered distributor who assumed liability for payment of the [tax] taxes imposed by the Gasoline Tax Act."

SECTION 14. Section 7-13-17 NMSA 1978 (being Laws 1998, Chapter 44, Section 2) is amended to read:

"7-13-17. PERMIT TO PURCHASE UNDYED GASOLINE FOR CERTAIN OFF-ROAD USE AND TO CLAIM REFUND OF TAX.--

A. Any person using gasoline in the operation of a clothes cleaning establishment, in stoves or in other appliances burning gasoline, or operators of aircraft using aviation gasoline exclusively in the operation of aircraft, upon proper showing of the permit provided for in this section, may purchase gasoline to which dye has not been added and may claim a refund thereon under the provisions of this section.

B. Upon submission of proof satisfactory to the department that the requirements of this subsection have been met, the department shall allow a claim for refund of gasoline tax and gasoline surtax paid on gasoline purchased and used in the manner described in Subsection A of this section by holders of permits issued under this section. The individual purchases of gasoline, other than that used for aviation fuel, must have been made in quantities of fifty gallons or more. Purchasers of aviation fuel may accumulate invoices to reach the fifty gallon minimum. No claim for refund may be presented or allowed on less than one hundred gallons so purchased. The secretary may prescribe by regulation or instruction the documents necessary to support a claim for refund made pursuant to the provisions of this subsection.

C. The department shall create permits, in form and content as the secretary may prescribe, that will allow persons to purchase gasoline to which dye has not been added for the uses specified in Subsection A of this section. The secretary shall prescribe the method by which a person may apply for a permit.

D. The secretary, upon notice and after hearing, may suspend for a period of up to one year or revoke the [gasoline] tax refund permit of any person who makes any false statement on an application for a permit or on a claim for refund made pursuant to the provisions of this section, who uses the gasoline in a motor boat or in a vehicle registered to operate on the highways of this state or who violates any other provision of the Gasoline Tax Act."

SECTION 15. Section 7-13-18 NMSA 1978 (being Laws 1998, Chapter 44, Section 3) is amended to read:

"7-13-18. DYED GASOLINE--PERMISSIBLE USES--PENALTIES FOR MISUSE.--

A. Gasoline distributors and wholesalers who are registered as distributors or wholesalers with the department may sell gasoline to be used other than in motor boats or in vehicles licensed to operate on the highways. These distributors and wholesalers shall mix with the gasoline an identifying dye in a manner consistent with state and federal law and regulations. The department shall furnish without charge the dye upon request. Such dyed gasoline may not be used in motor boats or in vehicles registered to be operated upon the highways of this state.

B. Any person who uses dyed gasoline in a motor boat or in a vehicle registered to be operated upon the highways of this state is liable for a civil penalty for each occurrence in an amount equal to the greater of one hundred dollars ($100) or the [rate] sum of the rates of the gasoline tax and the gasoline surtax multiplied by the capacity in gallons of the fuel supply tank or tanks of the motor boat or vehicle."

SECTION 16. 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. "biodiesel" means a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and that meets the American society for testing and materials specifications for biodiesel fuel, B100 or B99 blend stock for distillate fuels;

B. "blended biodiesel" means a diesel engine fuel that contains at least two percent biodiesel;

C. "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;

D. "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;

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

F. "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;

G. "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;

H. "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;

I. "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;

J. "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;

K. "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;

L. "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;

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

N. "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;

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

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

Q. "special fuel" means any diesel-engine fuel, biodiesel, blended biodiesel 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;

R. "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;

S. "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;

T. "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;

U. "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;

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

W. "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

X. "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 17. 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 SPECIAL FUEL EXCISE TAX--[DENOMINATION AS SPECIAL FUEL EXCISE TAX] IMPOSITION AND RATE OF SPECIAL FUEL EXCISE SURTAX.--

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] of twenty-one cents ($.21) on each gallon of special fuel received or used 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.

C.] The tax imposed by this [section] subsection may be [called] cited as the "special fuel excise tax".

B. In addition to the special fuel excise tax, a surtax is imposed, which may be cited as the "special fuel excise surtax", at the following rates on each gallon of special fuel received or used in New Mexico:

(1) beginning July 1, 2021 and prior to July 1, 2022, ten cents ($.10);

(2) beginning July 1, 2022 and prior to July 1, 2023, fifteen cents ($.15);

(3) beginning July 1, 2023 and prior to July 1, 2024, twenty cents ($.20);

(4) beginning July 1, 2024 and prior to July 1, 2025, twenty-five cents ($.25);

(5) beginning July 1, 2025 and prior to July 1, 2026, thirty cents ($.30); and

(6) beginning July 1, 2026, the rate determined pursuant to Subsection C of this section.

C. No later than April 30, 2026 and April 30 of each subsequent year, the department shall calculate the rate of special fuel excise surtax to be imposed as of July 1 of that year. The rate of the surtax per gallon shall be equal to the product, rounded down to the nearest whole cent, of thirty cents ($.30) multiplied by a fraction with a numerator equal to the consumer price index for the previous calendar year and a denominator equal to the consumer price index for calendar year 2024; provided that the rate shall not be adjusted to less than the rate imposed in the previous fiscal year.

D. As used in this section, "consumer price index" means the consumer price index for all urban consumers as published by the United States bureau of labor statistics."

SECTION 18. 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 sum of the rates of the special fuel excise tax [rate] and the special fuel excise surtax 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] the 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 sum of the rates of the special fuel excise tax [rate] and the special fuel excise surtax imposed on the day prior to the day in which the [special fuel excise tax rate] sum of the rates is increased, subtracted from the [special fuel excise tax rate] sum of the rates imposed on the day in which the [special fuel excise tax rate] increase is effective, expressed in cents per gallon.

B. 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 19. Section 7-16A-5 NMSA 1978 (being Laws 1992, Chapter 51, Section 5, as amended) is amended to read:

"7-16A-5. SPECIAL FUEL INVENTORIES.--

A. On the day prior to the day in which the sum of the rates of the special fuel excise tax [rate] and the special fuel excise surtax is increased or decreased, each supplier, dealer and bulk storage user shall take inventory of the gallons of special fuel on hand.

B. Suppliers and bulk storage users shall report total gallons of special fuel in inventory on the day prior to the day in which an increase in the sum of the rates of the special fuel excise tax [rate] and the special fuel excise surtax is effective and pay any special fuel inventory tax due."

SECTION 20. 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 "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 sum of the rates of the special fuel excise tax [rate] and the special fuel excise surtax 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] the decrease [in the special fuel excise tax rate] is effective. The refund is to be calculated by determining the difference between the sum of the rates of the special fuel excise tax [rate] and the special fuel excise surtax imposed on the day prior to the day in which the [special fuel excise tax rate] sum of the rates is decreased, subtracted from the [special fuel excise tax rate] sum of the rates 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 21. Section 7-16A-9.4 NMSA 1978 (being Laws 2013, Chapter 109, Section 3) is amended to read:

"7-16A-9.4. REPORTING REQUIREMENTS--SPECIAL FUEL DEDUCTION--BIODIESEL.--

A. A taxpayer that deducts an amount of special fuel that is biodiesel from the total amount of special fuel received in New Mexico pursuant to Paragraph (2) of Subsection H of Section 7-16A-10 NMSA 1978 shall report the deducted amount separately with the taxpayer's return in a manner prescribed by the department.

B. The department shall calculate the aggregate amount, in dollars, of the difference between the amount of [special fuel excise] tax that would have been collected in a fiscal year if not for the deduction allowed pursuant to Paragraph (2) of Subsection H of Section 7-16A-10 NMSA 1978 and the amount of [special fuel excise] tax actually collected. The department shall compile an annual report that includes the aggregate amount, the number of taxpayers that deducted an amount of special fuel pursuant to Paragraph (2) of Subsection H of Section 7-16A-10 NMSA 1978 and any other information necessary to evaluate the deduction. Beginning in 2017 and every five years thereafter, the department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the costs and benefits of the deduction to the state."

SECTION 22. 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 dyed in accordance with federal regulations;

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;

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

H. special fuel received in New Mexico that:

(1) prior to July 1, 2014, consists of at least ninety-nine percent vegetable oil or animal fat; provided that the use is restricted to an auxiliary fuel system that is subject to a certificate of conformity pursuant to the federal Clean Air Act; or

(2) is biodiesel received or manufactured and delivered to a rack operator that is within the state for blending or resale."

SECTION 23. Section 7-16A-11 NMSA 1978 (being Laws 1992, Chapter 51, Section 11, as amended) is amended to read:

"7-16A-11. TAX RETURNS--PAYMENT OF TAX--SPECIAL FUEL USERS--EXCEPTION.--

A. Except as otherwise provided in this section, a special fuel user shall file a [special fuel excise] tax return in form and content as prescribed by the secretary to conform to the due date for the [special fuel excise] tax return required by an interstate agreement to which the state is a party.

B. A special fuel user may elect to file and pay the [special fuel excise] tax annually by conforming to the annual filing requirements of an international fuel tax agreement to which the state is a party.

C. A special fuel user shall file a return in accordance with the conditions and terms of the international fuel tax agreement to which the state is a party.

D. To the extent that a special fuel user whose use of New Mexico highways is limited to that for which the special fuel user holds a valid border crossing special fuel user permit, as provided for in Section [1 of this 2018 act] 7-16A-19.1 NMSA 1978, the special fuel user is exempt from the requirements of this section."

SECTION 24. Section 7-16A-12 NMSA 1978 (being Laws 1992, Chapter 51, Section 12, as amended) is amended to read:

"7-16A-12. CREDIT [SPECIAL FUEL EXCISE TAX]--SPECIAL FUEL USERS.--In computing any [special fuel excise] tax due, all [special fuel excise] tax paid on special fuel used during the reporting period may be credited against the calculated [special fuel excise] tax due for that reporting period, provided [that] satisfactory proof of the [special fuel excise] tax paid is furnished to the department."

SECTION 25. Section 7-16A-13 NMSA 1978 (being Laws 1992, Chapter 51, Section 13, as amended) is amended to read:

"7-16A-13. CLAIM FOR REFUND OR CREDIT OF [SPECIAL FUEL EXCISE] TAX PAID--ON SPECIAL FUEL DESTROYED BY FIRE, ACCIDENT OR ACTS OF GOD BEFORE RETAIL SALE--ON SPECIAL FUEL PREVIOUSLY RECEIVED FROM A SOURCE OTHER THAN A REFINER OR PIPELINE TERMINAL.--

A. Upon the submission of proof satisfactory to the department, the department shall allow a claim for refund or credit of any special fuel excise tax, special fuel excise surtax or special fuel inventory tax paid on special fuel destroyed by fire, accident or acts of God while in the possession of a supplier, bulk storage user or dealer.

B. Upon the submission of proof satisfactory to the department, a rack operator may submit, and the department may allow, a claim for refund of a New Mexico tax paid on special fuel previously received in New Mexico from a source other than a refiner or pipeline terminal in this state and placed in a terminal from which it will be loaded into tank cars, tank trucks, tank wagons or other types of transportation equipment.

C. 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.

D. The department may prescribe the documents necessary to support a claim for refund pursuant to the provisions of this section."

SECTION 26. Section 7-16A-15 NMSA 1978 (being Laws 1992, Chapter 51, Section 15, as amended) is amended to read:

"7-16A-15. BOND REQUIRED OF SUPPLIER.--

A. Except as provided in Subsection H of this section, every supplier shall file with the department a bond on a form approved by the attorney general with a surety company authorized by the [state corporation commission] office of superintendent of insurance to transact business in this state as a surety and upon which bond the supplier is the principal obligor and the state the obligee. The bond shall be conditioned upon the prompt filing of true reports and the payment by the supplier to the department of all taxes levied by the Special Fuels Supplier Tax Act, together with all applicable penalties and interest thereon.

B. In lieu of the bond, the supplier may elect to file with the department cash or bonds of the United States or New Mexico or of any political subdivision of the state.

C. The total amount of the bond, cash or securities required of any supplier shall be fixed by the department and may be increased or reduced by the department at any time, subject to the limitations provided in this section.

D. In fixing the total amount of the bond, cash or securities required of any supplier required to post bond, the department shall require an equivalent in total amount to at least two times the amount of the department's estimate of the supplier's monthly [special fuel excise] tax, determined in such manner as the secretary may deem proper; provided, however, the total amount of bond, cash or securities required of a supplier shall never be less than one thousand dollars ($1,000).

E. In the event the department decides that the amount of the existing bond, cash or securities is insufficient to insure payment to this state of the amount of the [special fuel excise] tax and any penalties and interest for which the supplier is or may at any time become liable, [then] the supplier shall [forthwith], upon written demand of the department mailed to the last known address of the supplier as shown on the records of the department, file an additional bond, cash or securities in the manner, form and amount determined by the department to be necessary to secure at all times the payment by the supplier of all taxes, penalties and interest due pursuant to the Special Fuels Supplier Tax Act.

F. Any surety on any bond furnished by any supplier as required by this section shall be released and discharged from all liability accruing on the bond after the expiration of ninety days from the date upon which the surety files with the department a written request to be released and discharged; provided, however, the request shall not operate to release or discharge the surety from any liability already accrued or that shall accrue before the expiration of the ninety-day period, unless a new bond is filed during the ninety-day period, in which case the previous bond may be canceled as of the effective date of the new bond. On receipt of notice of such request, the department shall notify promptly the supplier who furnished the bond that the supplier shall, on or before the expiration of the ninety-day period, file with the department a new bond with a surety satisfactory to the department in the amount and form required in this section.

G. The supplier required to file bond with or provide cash or securities to the department in accordance with this section and who is required by any other state law to file another bond with or provide cash or securities to the department may elect to file a combined bond or provide cash or securities applicable to the provisions of both this section and the other law, with the approval of the secretary. The amount of the combined bond, cash or securities shall be determined by the department and the form of the combined bond shall be approved by the attorney general.

H. On July 1, 1994, every supplier who, for the twenty-four month period immediately preceding that date, has not been a delinquent taxpayer under the Special Fuels Supplier Tax Act or the Special Fuels Tax Act is exempt from the requirement pursuant to this section to file a bond. A supplier required to file a bond pursuant to the provisions of this section who, for a twenty-four consecutive month period ending after July 1, 1994, has not been a delinquent taxpayer pursuant to either the Special Fuels Supplier Tax Act or the Special Fuels Tax Act may request to be exempt from the requirement to file a bond beginning with the first day of the first month following the end of the twenty-four month period. If a supplier exempted pursuant to this subsection subsequently becomes a delinquent taxpayer pursuant to the Special Fuels Supplier Tax Act, the department may terminate the exemption and require the filing of a bond in accordance with this section. If the department terminates the exemption, the termination shall not be effective any earlier than ten days after the date the department notifies the supplier in writing of the termination."

SECTION 27. Section 7-16A-15.1 NMSA 1978 (being Laws 2007, Chapter 110, Section 4) is amended to read:

"7-16A-15.1. SPECIAL FUEL USERS--SURETY BOND REQUIRED--EXCEPTIONS.--

A. Except as required in Subsection H of this section, every special fuel user with a commercial domicile not located in an International Fuel Tax Agreement jurisdiction shall file with the department a bond on a form approved by the attorney general with a surety company authorized by the [public regulation commission] office of superintendent of insurance to transact business in New Mexico as a surety and upon which bond the special fuel user is the principal obligor and the state the obligee. The bond shall be conditioned upon the prompt filing of true reports and the payment by the special fuel user to the department of all taxes levied by the Special Fuels Supplier Tax Act, together with all applicable penalties and interest on the taxes.

B. In lieu of the bond, the special fuel user may elect to file with the department cash or bonds of the United States or New Mexico or of any political subdivision of the state.

C. The total amount of the bond, cash or securities required of a special fuel user shall be fixed by the department and may be increased or reduced by the department at any time, subject to the limitations provided in this section.

D. In fixing the total amount of the bond, cash or securities required of a special fuel user required to post a bond, the department shall require an amount equivalent to the total estimated tax due for two quarters; provided, however, that the total amount of bond, cash or securities required of a special fuel user shall never be less than five hundred dollars ($500).

E. In the event the department determines that the amount of the existing bond, cash or securities is insufficient to ensure payment to New Mexico of the amount of the [special fuel excise] tax and penalties and interest for which a special fuel user is or may at any time become liable, the special fuel user, upon written demand from the department mailed to the last known address of the special fuel user as shown on the records of the department, shall file an additional bond, cash or securities in the manner, form and amount determined by the department to be necessary to secure at all times the payment by the special fuel user of all taxes, penalties and interest due pursuant to the Special Fuels Supplier Tax Act.

F. A surety on a bond furnished by a special fuel user as required by this section shall be released and discharged from all liability accruing on the bond after the expiration of ninety days from the date upon which the surety files with the department a written request to be released and discharged; provided, however, that the request shall not operate to release or discharge the surety from liability already accrued or that shall accrue before the expiration of the ninety-day period, unless a new bond is filed during the ninety-day period, in which case the previous bond may be canceled as of the effective date of the new bond. On receipt of notice of the request to cancel the bond due to filing of a new bond, the department shall promptly notify the special fuel user who furnished the bond that the special fuel user, on or before the expiration of the ninety-day period, shall file with the department a new bond with a surety satisfactory to the department in the amount and form required in this section.

G. A special fuel user who is required to file a bond with or provide cash or securities to the department in accordance with this section and who is required by another state law to file another bond with or provide cash or securities to the department may elect to file a combined bond or provide cash or securities applicable to the provision of both this section and the other law, with the approval of the secretary. The amount of the combined bond, cash or securities shall be determined by the department, and the form of the combined bond shall be approved by the attorney general.

H. A special fuel user who is required to file a bond pursuant to the provisions of this section and who for the eight consecutive quarters preceding the date of request has not been delinquent filing reports or paying special fuel excise taxes pursuant to the Special Fuels Supplier Tax Act may request to be exempt from the requirement to file a bond beginning with the first day of the first quarter following the end of the eight-quarter period. If a special fuel user exempted pursuant to this subsection subsequently becomes delinquent, the department may terminate the exemption and require the filing of a bond in accordance with this section. If the department terminates the exemption, the termination shall not be effective any earlier than ten days after the date the department notifies the special fuel user in writing of the termination."

SECTION 28. Section 7-16A-20 NMSA 1978 (being Laws 1992, Chapter 51, Section 20) is amended to read:

"7-16A-20. ADMINISTRATION AND ENFORCEMENT OF ACT.--The department shall interpret the provisions of the Special Fuels Supplier Tax Act. The department shall administer and enforce the collection of the [special fuel excise tax, the special fuel inventory taxes and the tax on liquefied petroleum gas] taxes imposed pursuant to the Special Fuels Supplier Tax Act and the Tax Administration Act applies to the administration and enforcement of those taxes."

SECTION 29. A new section of the Taxation and Revenue Department Act is enacted to read:

"[NEW MATERIAL] GASOLINE AND SPECIAL FUEL EXCISE SURTAX LOW-INCOME REBATE FUND.--The "gasoline and special fuel excise surtax low-income rebate fund" is created in the state treasury. The department shall administer the fund, and money in the fund is appropriated to the department to fund gasoline and special fuel excise surtax low-income rebates. Money in the fund shall consist of distributions from the net receipts attributable to the gasoline surtax and the special fuel excise surtax. Disbursements from the fund shall be made upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the secretary of taxation and revenue. Any unexpended or unencumbered balance remaining in the fund at the end of a fiscal year shall not revert to any other fund."

SECTION 30. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read:

"[NEW MATERIAL] CLEAN INFRASTRUCTURE FUND--CLEAN INFRASTRUCTURE PLAN.--

A. The "clean infrastructure fund" is created in the state treasury. The department of transportation shall administer the fund, and money in the fund shall be expended in accordance with a clean infrastructure plan described in Subsection B of this section. Money in the fund shall consist of appropriations, distributions, gifts, grants, donations, income from investment of the fund and money otherwise accruing to the fund. Disbursements from the fund shall be made upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the secretary of transportation. Money in the fund shall not revert to any other fund.

B. A clean infrastructure plan shall be developed by the department of transportation by December 31, 2020 and updated every three years thereafter. The clean infrastructure plan shall seek to maximize reductions in air pollution, including greenhouse gases, from transportation in New Mexico and may include:

(1) support for local and statewide public transit infrastructure and operating costs, including in provision to rural, urban and low-income populations;

(2) state and local government electric vehicle acquisition, including for state, county, city and school district light duty, transit, school buses and medium and heavy duty fleets;

(3) green street completion, including pedestrian and bike improvements meant to increase multiple use roadways, increase pedestrian and bike safety and support economic development through bicycle- and walking-friendly neighborhoods;

(4) grants for electric vehicle charging infrastructure; and

(5) resilient roadway investments that will reduce erosion and improve soil carbon sequestration through planting of native plants along road rights of way."

SECTION 31. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2021.

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