TITLE 3:                TAXATION

CHAPTER 2:        GROSS RECEIPTS TAXES

PART 114:           EXEMPTION - GROSS RECEIPTS AND COMPENSATING TAX - FUEL

 

3.2.114.1               ISSUING AGENCY: Taxation and Revenue Department, Joseph M. Montoya Building, 1100 South St. Francis Drive, P.O. Box 630, Santa Fe NM 87504-0630

[11/15/96; 3.2.114.1 NMAC - Rn, 3 NMAC 2.26.1, 5/15/01]

 

3.2.114.2               SCOPE: This part applies to all persons engaging in business in New Mexico and selling or using gasoline, special fuel or alternative fuel.

[11/15/96; 3.2.114.2 NMAC - Rn, 3 NMAC 2.26.2, 5/15/01]

 

3.2.114.3               STATUTORY AUTHORITY: Section 9-11-6.2 NMSA 1978.

[11/15/96; 3.2.114.3 NMAC - Rn, 3 NMAC 2.26.3, 5/15/01]

 

3.2.114.4               DURATION: Permanent.

[11/15/96; 3.2.114.4 NMAC - Rn, 3 NMAC 2.26.4, 5/15/01]

 

3.2.114.5               EFFECTIVE DATE: 11/15/96, unless a later date is cited at the end of a section, in which case the later date is the effective date.

[11/15/96; 3.2.114.5 NMAC - Rn, 3 NMAC 2.26.5 & A, 5/15/01]

 

3.2.114.6               OBJECTIVE: The objective of this part is to interpret, exemplify, implement and enforce the provisions of the Gross Receipts and Compensating Tax Act.

[11/15/96, 3.2.114.6 NMAC - Rn, 3 NMAC 2.26.6, 5/15/01]

 

3.2.114.7               DEFINITIONS: [Reserved.]

[11/15/96; 3.2.114.7 NMAC - Rn, 3 NMAC 2.26.7, 5/15/01]

 

3.2.114.8               REFUND OF TAX:  When a refund of tax imposed by Sections 7-13-3 and 7-16A-3 NMSA 1978 is given the purchaser under Sections 7-13-17 or 7-16A-13.1 NMSA 1978, the compensating tax will be de­ducted from such refund and no gross receipts tax will be charged at the time of sale of the product. The reasonable value of gasoline or special fuel for compensating tax purposes will be the price paid for the fuel, including any applicable excise taxes whether separately stated or included in the price. This version of 3.2.114.8 NMAC applies to transactions on or after July 1, 1998.

[12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.114.8 NMAC - Rn, 3 NMAC 2.26.8 & A, 10/31/00; A, 10/15/02; A, 12/30/10]

 

3.2.114.9               TURBO PROP AND JET FUEL:

                A.            Receipts from the sale of fuel, specially prepared and sold for use in turbo prop or jet type engines, are subject to the gross receipts tax.

                B.            These receipts are not exempt under Section 7-9-26 NMSA 1978 because products specially prepared and sold for use in turbo prop or jet type engines are not taxed under Section 7-13-3 NMSA 1978 or Section 7-16A-3 NMSA 1978, because of the definition of gasoline in Section 7-13-2 NMSA 1978 and special fuel in Section 7-16A-2 NMSA 1978.

[12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.114.9 NMAC - Rn, 3 NMAC 2.26.9 & A, 5/15/01]

 

3.2.114.10             TRANSFER OF FUEL INCIDENTAL TO A SALE OR LEASE:

                A.            The provisions of Section 7-9-26 NMSA 1978 do not apply when the transfer or sale of the fuel is incidental to the sale or lease of a vehicle.

                B.            Example:  X Company leases a truck to Y Company in New Mexico. X furnishes all parts and labor required to maintain and repair the leased vehicle and provides tires, oil and gasoline needed during the lease term. Y pays X a fixed predetermined rental charge for the truck along with the above items. The lease contract requires X to furnish the truck filled with gasoline at the beginning of the lease term and to continue to furnish gasoline during the lease term. X furnishes gasoline to Y only in conjunction with the rental of the truck. Z Company sells to X all the gasoline X requires for the truck it leased to Y. X's total receipts from leasing the truck to Y are subject to the gross receipts tax. No part of X's receipts are exempt from the gross receipts tax, because X's receipts are not receipts from “selling and the use of gasoline”. Z's receipts from selling gasoline to X are exempt from the  gross receipts tax if the tax imposed by Section 7-13-3 NMSA 1978 or Section 7-16A-3 NMSA 1978 has been paid on that gasoline and not refunded.

[3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.114.10 NMAC - Rn, 3 NMAC 2.26.10 & A, 5/15/01]

 

HISTORY OF 3.2.114 NMAC:

Pre-NMAC History:

BOR 67-2, NM Gross Receipts and Compensating Tax Regulations, September 1967, filed 9/29/67.

BOR 69-4, Regulations in Effect and Pertaining to the New Mexico Gross Receipts and Compensating Tax Act, 12-5-69, filed 12/5/69.

BOR 72-4, Regulations in Effect and Pertaining to the New Mexico Gross Receipts and Compensating Tax Act, 3/9/72, filed 3/9/72.

BOR 74-2, Regulations in Effect and Pertaining to the New Mexico Gross Receipts and Compensating Tax Act, 12/15/73, filed 3/20/74.

BOR 76-1, Regulations in Effect and Pertaining to the New Mexico Gross Receipts and Compensating Tax Act, 7/26/76, filed 7/26/76.

R.D.79-1, Gross Receipts and Compensating Tax Act Regulations, filed 6/18/79.

R.D. Rule No. 82, Regulations Pertaining to the Gross Receipts and Compensating Tax Act, Sections 7-9-1 to 7-9-80.1 NMSA 1978, filed 4/7/82.

R.D. Rule No. 84, Regulations Pertaining to the Gross Receipts and Compensating Tax Act, Sections 7-9-1 to 7-9-80.1 NMSA 1978, filed 5/4/84.

TRD Rule No. 9-86, Regulations Pertaining to the Gross Receipts and Compensating Tax Act, Sections 7-9-1 to 7-9-80.1 NMSA 1978, filed 4/2/86.

TRD Rule GR-90, Regulations Pertaining to the Gross Receipts and Compensating Tax Act, Sections 7-9-1 to 7-9-80.1 NMSA 1978, filed 11/26/90.

 

History of Repealed Material:  [RESERVED]

 

NMAC History:

3 NMAC 2.26, Exemption - Gross Receipts and Compensating Tax - Fuel, filed 11/4/96.

3.2.114 NMAC, Exemption - Gross Receipts and Compensating Tax - Fuel, filed 4/30/2001.