TITLE 3 TAXATION
CHAPTER 2 GROSS
RECEIPTS TAXES
PART 250 DEDUCTION
- GROSS RECEIPTS AND COMPENSATING TAXES - LOCOMOTIVE FUEL
3.2.250.1 ISSUING
AGENCY: Economic Development Department
[3.2.250.1 NMAC - N,
7/1/2012]
3.2.250.2 SCOPE: This part
applies to each person claiming the locomotive fuel deduction from gross
receipts or in computing the compensating tax.
[3.2.250.2 NMAC - N,
7/1/2012]
3.2.250.3 STATUTORY
AUTHORITY: The promulgation of rules for the issuance of
a certificate of eligibility for the purposes of claiming a deduction of
receipts from the sale of fuel loaded or used by a common carrier in a
locomotive engine from gross receipts and of claiming a deduction of the value
of fuel to be loaded or used by a common carrier in a locomotive engine in
computing the compensating tax shall be the responsibility of the economic
development department pursuant to the governing legislation, NMSA 1978,
Section 7-9-110.3(D).
[3.2.250.3 NMAC - N,
7/1/2012]
3.2.250.4 DURATION:
Permanent.
[3.2.250.4 NMAC - N,
7/1/2012]
3.2.250.5 EFFECTIVE
DATE: July 1, 2012.
[3.2.250.5 NMAC - N,
7/1/2012]
3.2.250.6 OBJECTIVE: The
purpose of the deduction of receipts from the sale of fuel loaded or used by a
common carrier in a locomotive engine from gross receipts and of the deduction
of the value of fuel to be loaded or used by a common carrier in a locomotive
engine in computing the compensating tax is to encourage the construction,
renovation, maintenance and operation of railroad locomotive refueling facilities
and related activities in New Mexico.
[3.2.250.6 NMAC - N,
7/1/2012]
3.2.250.7 DEFINITIONS: For
the purposes of this section, “locomotive engine” means a wheeled vehicle
consisting of a self-propelled engine that is used to draw trains along railway
tracks.
[3.2.250.7 NMAC - N,
7/1/2012]
3.2.250.8 QUALIFICATIONS
AND REQUIREMENTS:
A. To be eligible for the deduction of receipts from the
sale of fuel loaded or used by a common carrier in a locomotive engine from
gross receipts, the sale shall be made to a common carrier that, after July 1,
2011, made a capital investment of one hundred million dollars ($100,000,000)
or more in new construction or renovations at the railroad locomotive refueling
facility in which the fuel is sold, and the common carrier shall deliver an
appropriate nontaxable transaction certificate to the seller.
B. To be eligible for the deduction of the value fuel loaded
or used by a common carrier in a locomotive engine in computing the
compensating tax, the fuel shall be used or loaded by a common carrier that,
after July 1, 2011, made a capital investment of one hundred million dollars
($100,000,000) or more in new construction or renovations at the railroad
locomotive refueling facility in which the fuel is loaded or used.
C. A common carrier may request a certificate of eligibility
from the economic development department to provide to the taxation and revenue
department to establish eligibility for a nontaxable transaction certificate
for the deduction of receipts from the sale of fuel loaded or used by a common
carrier in a locomotive engine from gross receipts and for the deduction of the
value of fuel loaded or used by a common carrier in a locomotive engine in
computing the compensating tax.
(1) A common carrier shall apply to the
economic development department for a certificate of eligibility on forms
provided by the economic development department.
(2) Applications shall be considered in
the order received.
(3) A common carrier requesting a
certificate of eligibility from the economic development department shall
provide such information as the economic development department deems necessary
to determine that the common carrier has made a capital investment of one
hundred million dollars ($100,000,000) or more in new construction or
renovations at a railroad locomotive refueling facility after July 1, 2011.
(4) If the economic development
department determines that a common carrier has applied for a certificate of
eligibility on forms provided by the economic development department in the
manner prescribed by these rules, made a capital investment of one hundred
million dollars ($100,000,000) or more in new construction or renovations at
the railroad locomotive refueling facility in which the fuel is sold, and
complied with all reporting requirements, it shall issue a certificate of
eligibility to the common carrier.
(5) The certificate of eligibility shall
be dated.
[3.2.250.8 NMAC - N,
7/1/2012]
3.2.250.9 REPORTING:
A. Every taxpayer that claims a deduction under Section
7-9-110.1 NMSA 1978 shall report to the economic development department, on
forms provided by the department, the following information no later than
August 1 for the full year ending on the previous June 30:
(1) the amount
of the deduction claimed;
(2) the number
of permanent jobs created by the taxpayer as a result of the deductions claimed;
(3) the number
of temporary jobs created by the taxpayer as a result of the deductions
claimed; and
(4) an estimate
of the net revenue to the state as a result of the deductions claimed.
B. Every taxpayer that claims a deduction under Section
7-9-110.2 NMSA 1978 shall report to the economic development department, on
forms provided by the department, the amount of the deduction claimed, no later
than 30 days after reporting the deduction to the taxation and revenue
department.
C. If any deduction amount reported in Subsections A and B
above is subsequently denied by the taxation and revenue department, the
taxpayer must report the amount of the denial to the economic development
department no later than 30 days after receiving notice of the denial or after
the resolution of all administrative proceedings, whichever is later.
[3.2.250.9 NMAC - N,
7/1/2012; A, 7/1/2012]
HISTORY OF 3.2.250
NMAC: [RESERVED]