HOUSE BILL 612
54th legislature - STATE OF NEW MEXICO - first session, 2019
Abbas Akhil and Daymon Ely and
Nathan P. Small and Debra M. Sariñana
RELATING TO TAXATION; REINSTATING AN EXEMPTION FROM THE MOTOR VEHICLE EXCISE TAX FOR CERTAIN HYBRID VEHICLES AND EXPANDING IT TO INCLUDE CERTAIN ELECTRIC VEHICLES; CORRECTING A CITATION IN GROSS RECEIPTS AND COMPENSATING TAX EXEMPTIONS FOR CERTAIN VEHICLES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-9-22 NMSA 1978 (being Laws 1969, Chapter 144, Section 15, as amended) is amended to read:
"7-9-22. EXEMPTION--GROSS RECEIPTS TAX--VEHICLES.--Exempted from the gross receipts tax are the receipts from selling vehicles on which a tax is imposed by the Motor Vehicle Excise Tax Act, vehicles subject to registration under Section 66-3-16 NMSA 1978 and vehicles exempt from the motor vehicle excise tax pursuant to Subsection [F] G of Section 7-14-6 NMSA 1978."
SECTION 2. Section 7-9-23 NMSA 1978 (being Laws 1969, Chapter 144, Section 16, as amended) is amended to read:
"7-9-23. EXEMPTION--COMPENSATING TAX--VEHICLES.--Exempted from the compensating tax [is] are the use of vehicles on which the tax imposed by the Motor Vehicle Excise Tax Act has been paid, the use of vehicles subject to registration under Section 66-3-16 NMSA 1978 and the use of vehicles exempt from the motor vehicle excise tax pursuant to Subsection [F] G of Section 7-14-6 NMSA 1978."
SECTION 3. Section 7-14-6 NMSA 1978 (being Laws 1988, Chapter 73, Section 16, as amended) is amended to read:
"7-14-6. EXEMPTIONS FROM TAX.--
A. A person who acquires a vehicle out of state thirty or more days before establishing a domicile in this state is exempt from the tax if the vehicle was acquired for personal use.
B. A person applying for a certificate of title for a vehicle registered in another state is exempt from the tax if the person has previously registered and titled the vehicle in New Mexico and has owned the vehicle continuously since that time.
C. A vehicle with a certificate of title owned by this state or any political subdivision is exempt from the tax.
D. A person is exempt from the tax if the person has a disability at the time the person purchases a vehicle and can prove to the motor vehicle division of the department or its agent that modifications have been made to the vehicle that are:
(1) due to that person's disability; and
(2) necessary to enable that person to drive that vehicle or be transported in that vehicle.
E. A person is exempt from the tax if the person is a bona fide resident of New Mexico who served in the armed forces of the United States and who suffered, while serving in the armed forces or from a service-connected cause, the loss or complete and total loss of use of:
(1) one or both legs at or above the ankle; or
(2) one or both arms at or above the wrist.
F. A person who acquires a vehicle for subsequent lease shall be exempt from the tax if:
(1) the person does not use the vehicle in any manner other than holding it for lease or sale or leasing or selling it in the ordinary course of business;
(2) the lease is for a term of more than six months;
(3) the receipts from the subsequent lease are subject to the gross receipts tax; and
(4) the vehicle does not have a gross vehicle weight of over twenty-six thousand pounds.
G. [From July 1, 2004 through June 30, 2009] Prior to July 1, 2024, vehicles that are [gasoline-electric] electric vehicles, plug-in hybrid electric vehicles [with a United States environmental protection agency fuel economy rating of at least twenty-seven and one-half miles per gallon] or hybrid-electric vehicles are eligible for a one-time exemption from the tax at the time of the issuance of the original certificate of title for the vehicle.
H. As used in this section:
(1) "electric vehicle" means a motor vehicle, a plug-in hybrid electric vehicle or a hybrid-electric vehicle with four wheels that:
(a) is made by a manufacturer;
(b) is manufactured primarily for use on public streets, roads or highways;
(c) has not been modified from the original manufacturer specifications;
(d) is rated at not less than two thousand two hundred pounds unloaded base weight and not more than eight thousand five hundred pounds unloaded base weight;
(e) has a maximum speed capability of at least sixty-five miles per hour; and
(f) is propelled to a significant extent by an electric motor that draws electricity from a battery that: 1) has a capacity of not less than four kilowatt-hours; and 2) is capable of being recharged from an external source of electricity;
(2) "hybrid-electric vehicle" means a vehicle that uses both an internal combustion engine and an electric motor and has a battery pack that holds at least four kilowatt-hours; and
(3) "plug-in hybrid electric vehicle" means a vehicle that uses both an internal combustion engine and an electric motor, has a battery pack that holds at least four kilowatt-hours and is capable of operation without the use of the internal combustion engine for an all-electric range of at least fifteen miles when the battery is charged from an external source."
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.
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