0001|                            HOUSE BILL 432
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          DONALD L. WHITAKER
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO TAXATION; CHANGING THE DEDUCTION IN THE GASOLINE
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0012|     TAX ACT AND THE SPECIAL FUELS SUPPLIER TAX ACT FOR OFF-ROAD
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0013|     USE OF GASOLINE OR SPECIAL FUEL; AMENDING, REPEALING AND
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0014|     ENACTING SECTIONS OF THE NMSA 1978.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  Section 7-13-4 NMSA 1978 (being Laws 1991,
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0018|     Chapter 9, Section 32, as amended) is amended to read:
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0019|          "7-13-4.  DEDUCTIONS--GASOLINE TAX.--In computing the
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0020|     gasoline tax due, the following amounts of gasoline may be
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0021|     deducted from the total amount of gasoline received in New
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0022|     Mexico during the tax period, provided <s>[that]</s> satisfactory
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0023|     proof thereof is furnished to the department:
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0024|               A.  gasoline received in New Mexico, but exported
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0025|     from this state by a rack operator, distributor or wholesaler
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0001|     other than in the fuel supply tank of a motor vehicle or sold
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0002|     for export by a rack operator or distributor; provided that,
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0003|     in either case:
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0004|                    (1)  the person exporting the gasoline is
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0005|     registered in or licensed by the destination state to pay that
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0006|     state's gasoline or equivalent fuel tax;
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0007|                    (2)  proof is submitted that the destination
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0008|     state's gasoline or equivalent fuel tax has been paid or is
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0009|     not due with respect to the gasoline; or
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0010|                    (3)  the destination state's gasoline or
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0011|     equivalent fuel tax is paid to New Mexico in accordance with
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0012|     the terms of an agreement entered into pursuant to Section
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0013|     9-11-12 NMSA 1978 with the destination state;
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0014|               B.  gasoline received in New Mexico sold to the
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0015|     United States or any agency or instrumentality thereof for the
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0016|     exclusive use of the United States or any agency or
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0017|     instrumentality thereof.  Gasoline sold to the United States
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0018|     includes gasoline delivered into the supply tank of a
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0019|     government-licensed vehicle of the United States; <s>[and]</s>
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0020|               C.  gasoline received in New Mexico sold to an
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0021|     Indian nation, tribe or pueblo or any political subdivision,
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0022|     agency or instrumentality of that Indian nation, tribe or
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0023|     pueblo for the exclusive use of the Indian nation, tribe or
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0024|     pueblo or any political subdivision, agency or instrumentality
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0025|     thereof.  Gasoline sold to an Indian nation, tribe or pueblo
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0001|     includes gasoline delivered into the supply tank of a
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0002|     government-licensed vehicle of the Indian nation, tribe or
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0003|     pueblo; <u>and</u>
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0004|               <u>D.  gasoline received in New Mexico, dyed in
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<u></u>0005| <u>    accordance with department regulations and used in any manner
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<u></u>0006| <u>    other than for propulsion of motor vehicles on the highways of
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<u></u>0007| <u>    this state or activities ancillary to that propulsion</u>."
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0008|          Section 2.  A new section of the Gasoline Tax Act is
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0009|     enacted to read:
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0010|          "[<u>NEW MATERIAL</u>] PERMIT TO PURCHASE UNDYED GASOLINE FOR
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0011|     CERTAIN OFF-ROAD USE AND TO CLAIM REFUND OF TAX.--
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0012|               A.  Any person using gasoline in the operation of a
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0013|     clothes cleaning establishment, in stoves or other appliances
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0014|     burning gasoline, or operators of aircraft using aviation
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0015|     gasoline exclusively in the operation of aircraft, upon proper
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0016|     showing of the permit provided for in this section, may
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0017|     purchase gasoline to which dye has not been added and may
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0018|     claim a refund thereon under the provisions of this section.
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0019|               B.  Upon submission of proof satisfactory to the
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0020|     department that the requirements of this subsection have been
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0021|     met, the department shall allow a claim for refund of gasoline
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0022|     tax paid on gasoline purchased and used in the manner
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0023|     described in Subsection A of this section by holders of
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0024|     permits issued under this section.  The individual purchases
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0025|     of gasoline, other than that used for aviation fuel, must have
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0001|     been made in quantities of fifty gallons or more.  Purchasers
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0002|     of aviation fuel may accumulate invoices to reach the fifty
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0003|     gallon minimum.  No claim for refund may be presented or
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0004|     allowed on less than one hundred gallons so purchased.  The
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0005|     secretary may prescribe by regulation or instruction the
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0006|     documents necessary to support a claim for refund made
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0007|     pursuant to the provisions of this subsection.
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0008|               C.  The secretary, upon notice and after hearing,
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0009|     may suspend for a period of up to one year or revoke the
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0010|     gasoline tax refund permit of any person who makes any false
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0011|     statement on an application for a permit or on a claim for
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0012|     refund made pursuant to the provisions of this section, who
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0013|     uses the gasoline in a motor boat or in a vehicle registered
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0014|     to operate on the highways of this state or who violates any
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0015|     other provision of the Gasoline Tax Act."
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0016|          Section 3.  A new section of the Gasoline Tax Act is
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0017|     enacted to read:
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0018|          "[<u>NEW MATERIAL</u>] DYED GASOLINE--PERMISSIBLE USES--
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0019|     PENALTIES FOR MISUSE.--
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0020|               A.  Gasoline distributors and wholesalers who are
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0021|     registered as distributors or wholesalers with the department
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0022|     may sell gasoline to be used other than in motor boats or in
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0023|     vehicles licensed to operate on the highways.  These
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0024|     distributors and wholesalers shall mix with the gasoline an
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0025|     identifying dye in a manner consistent with federal law and
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0001|     regulations.  The department shall furnish without charge the
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0002|     dye upon request.  Such dyed gasoline may not be used in motor
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0003|     boats or in vehicles registered to be operated upon the
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0004|     highways of this state.
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0005|               B.  Any person who uses dyed gasoline in a motor
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0006|     boat or in a vehicle registered to be operated upon the
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0007|     highways of this state is liable for a civil penalty for each
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0008|     occurrence in an amount equal to the greater of one hundred
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0009|     dollars ($100) or the rate of the gasoline tax multiplied by
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0010|     the capacity in gallons of the fuel supply tank or tanks of
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0011|     the motor boat or vehicle."
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0012|          Section 4.  Section 7-16A-10 NMSA 1978 (being Laws 1992,
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0013|     Chapter 51, Section 10, as amended) is amended to read:
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0014|          "7-16A-10.  DEDUCTIONS--SPECIAL FUEL EXCISE TAX--SPECIAL
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0015|     FUEL SUPPLIERS.--In computing the <s>[special fuel excise]</s> tax
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0016|     due, the following amounts of special fuel may be deducted
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0017|     from the total amount of special fuel received in New Mexico
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0018|     during the tax period, provided that satisfactory proof
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0019|     thereof is furnished to the department:
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0020|               A.  special fuel received in New Mexico, but
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0021|     exported from this state by a rack operator, special fuel
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0022|     supplier or dealer, other than in the fuel supply tank of a
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0023|     motor vehicle or sold for export by a rack operator or
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0024|     distributor; provided that, in either case:
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0025|                    (1)  the person exporting the special fuel is
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0001|     registered in or licensed by the destination state to pay that
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0002|     state's special fuel or equivalent fuel tax;
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0003|                    (2)  proof is submitted that the destination
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0004|     state's special fuel or equivalent fuel tax has been paid or
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0005|     is not due with respect to the special fuel; or
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0006|                    (3)  the destination state's special fuel or
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0007|     equivalent fuel tax is paid to New Mexico in accordance with
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0008|     the terms of an agreement entered into pursuant to Section
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0009|     9-11-12 NMSA 1978 with the destination state;
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0010|               B.  special fuel sold to the United States or any
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0011|     agency or instrumentality thereof for the exclusive use of the
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0012|     United States or any agency or instrumentality thereof. 
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0013|     Special fuel sold to the United States includes special fuel
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0014|     delivered into the supply tank of a government-licensed
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0015|     vehicle;
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0016|               C.  special fuel sold to the state of New Mexico or
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0017|     any political subdivision, agency or instrumentality thereof
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0018|     for the exclusive use of the state of New Mexico or any
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0019|     political subdivision, agency or instrumentality thereof. 
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0020|     Special fuel sold to the state of New Mexico includes special
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0021|     fuel delivered into the supply tank of a government-licensed
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0022|     vehicle;
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0023|               D.  special fuel sold to an Indian nation, tribe or
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0024|     pueblo or any agency or instrumentality thereof for the
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0025|     exclusive use of the Indian nation, tribe or pueblo or any
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0001|     agency or instrumentality thereof.  Special fuel sold to an
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0002|     Indian nation, tribe or pueblo includes special fuel delivered
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0003|     into the supply tank of a government-licensed vehicle;
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0004|               E.  special fuel sold to the holder of a special
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0005|     bulk storage user permit and delivered into special bulk
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0006|     storage pursuant to the provisions of Section 7-16A-8 NMSA
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0007|     1978; and
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0008|               F.  special fuel <u>dyed in accordance with federal
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<u></u>0009| <u>    regulations and</u> used in any manner other than for propulsion
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0010|     of motor vehicles on the highways of this state or activities
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0011|     ancillary to that propulsion."
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0012|          Section 5.  TEMPORARY PROVISION--TRANSITION PROVISION.--
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0013|     Until January 1, 1999, holders of permits issued pursuant to
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0014|     the provisions of Sections 7-13-13 through 7-13-15 NMSA 1978
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0015|     may submit and the department shall allow, in accordance with
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0016|     the provisions of those sections, claims for refund of
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0017|     gasoline tax paid on dyed or undyed gasoline purchased prior
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0018|     to the effective date of this act as if the provisions of
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0019|     those sections were still in effect.
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0020|          Section 6.  REPEAL.--Sections 7-13-13 through 7-13-15
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0021|     NMSA 1978 (being Laws 1971, Chapter 207, Sections 12 through
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0022|     14, as amended) are repealed.
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0023|          Section 7.  EFFECTIVE DATE.--The effective date of the
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0024|     provisions of this act is July 1, 1998.
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0025|                              
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