HOUSE FLOOR SUBSTITUTE FOR
HOUSE RULES AND ORDER OF BUSINESS COMMITTEE SUBSTITUTE FOR
HOUSE BILL 329
53rd legislature - STATE OF NEW MEXICO - second session, 2018
AN ACT
RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; ESTABLISHING BORDER CROSSING SPECIAL FUEL USER PERMITS FOR SPECIAL FUEL USERS MAKING LIMITED-DISTANCE TRIPS ACROSS THE NEW MEXICO-MEXICO BORDER; ADJUSTING THE TERMS APPLICABLE TO TEMPORARY SPECIAL FUEL USER PERMITS; PRESCRIBING PENALTIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Special Fuels Supplier Tax Act is enacted to read:
"[NEW MATERIAL] BORDER CROSSING SPECIAL FUEL USER
PERMIT.--
A. A special fuel user who operates a commercial motor carrier vehicle registered or titled in Mexico, who is engaged primarily in movement across the New Mexico-Mexico border and into or from an international border commercial zone and whose exclusive use of New Mexico highways is limited to an area within ten miles of the New Mexico-Mexico border may apply for, on a form approved by the department, a quarterly, semi-annual or annual border crossing special fuel user permit. The department shall issue the permit if it approves the application and upon payment of the fee for the permit.
B. The department shall establish by rule the amount, which shall not exceed the following, of fees for border crossing special fuel user permits:
(1) for a quarterly permit, one hundred twenty-five dollars ($125);
(2) for a semi-annual permit, two hundred dollars ($200); and
(3) for an annual permit, three hundred fifty dollars ($350).
C. The department may revoke, after notice and a hearing, the border crossing special fuel user permit of a special fuel user found to have violated the Special Fuels Supplier Tax Act.
D. As used in this section, "international border commercial zone" means that part of a commercial zone established by a law of the United States that extends into New Mexico."
SECTION 2. Section 7-16A-2.1 NMSA 1978 (being Laws 1997, Chapter 192, Section 6) is amended to read:
"7-16A-2.1. WHEN SPECIAL FUEL RECEIVED OR USED--WHO IS REQUIRED TO PAY TAX.--
A. A rack operator receives special fuel at the time and place when the rack operator first loads the special fuel at the refinery or pipeline terminal into tank cars, tank trucks, tank wagons or any other type of transportation equipment or when the rack operator places the special fuel into any tank or other container in this state from which sales or deliveries not involving transportation are made. A rack operator who receives special fuel is required to pay [special fuel excise] the tax on the special fuel received, except as provided otherwise in Subsection B of this section. Special fuel is not received when it is shipped from one refinery or pipeline terminal to another refinery or pipeline terminal.
B. When the rack operator first loads special fuel at the refinery or pipeline terminal into tank cars, tank trucks, tank wagons or any other type of transportation equipment for the account of another person who is registered with the department as a supplier and is taxable under the Special Fuels Supplier Tax Act, [however] that person receives the special fuel and is required to pay the [special fuel excise] tax.
C. Special fuel imported into New Mexico by any means other than in the supply tank of a motor vehicle or by pipeline is received at the time and place it is imported into this state. The person who owns the special fuel at the time of importation receives the special fuel and is required to pay the [special fuel excise] tax.
D. If special fuel is received within the exterior boundaries of an Indian reservation or pueblo grant and the person required to pay the [special fuel excise] tax is immune from state taxation, the special fuel is also received when the special fuel is transported off the reservation or pueblo grant by any means other than in the fuel supply tank of a motor vehicle or by pipeline. Any person who owns special fuel after the special fuel is transported off the reservation or pueblo grant receives the special fuel and is the person required to pay the [special fuel excise] tax, unless the [special fuel excise] tax has been paid by a previous owner.
E. Except as provided in Subsection F of this section, special fuel is used in New Mexico when it is put into the supply tank of any motor vehicle registered, owned or operated by a special fuel user, consumed by a special fuel user in the propulsion of a motor vehicle on the highways of this state or any activity ancillary to that propulsion, or imported into the state in the fuel supply tank of any motor vehicle for the propulsion of the motor vehicle on New Mexico highways.
F. To the extent that a special fuel user whose use of New Mexico highways is limited to that for which the special fuel user holds a valid border crossing special fuel user permit, as provided for in Section 1 of this 2018 act, the special fuel user does not use special fuel in this state."
SECTION 3. Section 7-16A-11 NMSA 1978 (being Laws 1992, Chapter 51, Section 11, as amended) is amended to read:
"7-16A-11. TAX RETURNS--PAYMENT OF TAX--SPECIAL FUEL USERS--EXCEPTION.--
A. Except as otherwise provided in this section, a special fuel user shall file a special fuel excise tax return in form and content as prescribed by the secretary to conform to the due date for the special fuel excise tax return required by an interstate agreement to which the state is a party.
B. A special fuel user may elect to file and pay the special fuel excise tax annually by conforming to the annual filing requirements of an international fuel tax agreement to which the state is a party.
C. A special fuel user shall file a return in accordance with the conditions and terms of the international fuel tax agreement to which the state is a party.
D. To the extent that a special fuel user whose use of New Mexico highways is limited to that for which the special fuel user holds a valid border crossing special fuel user permit, as provided for in Section 1 of this 2018 act, the special fuel user is exempt from the requirements of this section."
SECTION 4. Section 7-16A-19 NMSA 1978 (being Laws 1992, Chapter 51, Section 19, as amended) is amended to read:
"7-16A-19. [TEMPORARY] SPECIAL FUEL USER PERMITS-- VIOLATION.--
A. [To prevent evasion of the special fuel excise tax] A special fuel [users] user whose [vehicles are] vehicle is not registered with the department shall acquire [a temporary special fuel user permit] from the department, before operating the [unregistered motor] vehicle on [the] New Mexico highways [of New Mexico. The]:
(1) a temporary special fuel user permit valid for one calendar day only or for one entry into and one exit out of New Mexico; or
(2) a border crossing special fuel user permit, as provided for in Section 1 of this 2018 act.
B. A special fuel user applying for a temporary special fuel user permit shall [be valid for one entrance and one exit of the state within a period that shall not exceed forty-eight hours from the time of issuance] apply for the permit on a form approved by the department.
[B.] C. The fee for a temporary special fuel user permit is five dollars ($5.00) for each motor vehicle.
[C.] D. It is a violation of the Special Fuels Supplier Tax Act for [any] a person to act as a temporary special fuel user without [obtaining] possessing a valid temporary special fuel user permit [from] issued by the department.
E. It is a violation of the Special Fuels Supplier Tax Act for a person holding a valid border crossing special fuel user permit to travel in the motor carrier vehicle for which the permit was issued on New Mexico highways outside the area in which the permit authorizes travel, unless the person may otherwise under law engage in that travel. In addition to any other penalty that may apply, a person who violates this provision is subject to a fine of three hundred dollars ($300)."
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2018.
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