HOUSE BILL 288

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Roberto "Bobby" J. Gonzales

AN ACT

RELATING TO TAXATION; PROVIDING A DEDUCTION FOR CERTAIN BIODIESEL FOR SUBSEQUENT BLENDING OR RESALE BY A RACK OPERATOR.

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

     SECTION 1. Section 7-13A-5 NMSA 1978 (being Laws 1990, Chapter 124, Section 18) is amended to read:

     "7-13A-5. DEDUCTION--GASOLINE OR SPECIAL FUELS RETURNED--BIODIESEL FOR SUBSEQUENT BLENDING OR RESALE BY A RACK OPERATOR.--

          A. Refunds and allowances made to buyers for gasoline or special fuels returned to the refiner, pipeline terminal operator or distributor or amounts of gasoline or special fuels, the payment for which has not been collected and has been determined to be uncollectible pursuant to provisions of regulations issued by the secretary may be deducted from gallons used to determine loads for the purposes of calculating the petroleum products loading fee. If such a payment is subsequently collected, the gallons represented shall be included in determining loads. The deduction under the provisions of this section shall not be allowed if the petroleum products loading fee has not been paid previously on the petroleum products that were returned to the seller or the sale of which created an uncollectible debt.

          B. Biodiesel, as defined in the Special Fuels Supplier Tax Act, loaded in or imported into New Mexico and delivered to a distributor for subsequent blending or resale by a rack operator may be deducted from gallons used to determine loads for the purposes of calculating the petroleum products loading fee.

          C. For purposes of this section, "rack operator" means the operator of a refinery in this state or the owner of special fuel stored at a pipeline terminal in this state."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to biodiesel loaded in or imported into New Mexico on or after July 1, 2014.

- 2 -