New Mexico Administrative Code › Title 3 - TAXATION › Chapter 16 - MOTOR VEHICLE FUEL TAXES › Part 203 - EXEMPTIONS › Section 3.16.203.10 - INDIRECT SALES TO THE UNITED STATES OR A NATO FORCE FOR EXPORT

Current through Register Vol. 35, No. 13, July 16, 2024
A. The petroleum
				products loading fee consequences of sales of petroleum product to the United
				States or a NATO force by a wholesaler, dealer or retailer or for export for
				resale and consumption outside of New Mexico are illustrated by the following
				examples. These examples concern only the liability of the parties to the
				department and do not affect the obligation of any party to pay the price for
				the petroleum products to the seller. The fact that the price may include an
				amount corresponding to the petroleum products loading fee does not make that
				amount a fee on the purchaser.
B.
				Examples:
(1) X, a distributor, paid the
				petroleum product loading fee with respect to one hundred (100) gallons of
				petroleum product loaded or imported in May and resold the petroleum product to
				Y, a wholesaler or dealer. Y then sold the petroleum product in that same May
				to the United States or a NATO force. If Y furnishes satisfactory proof to X, X
				may either deduct the one hundred (100) gallons from the amount of petroleum
				product subject to the petroleum product loading fee for that month of May, or
				may elect to take the deduction in any subsequent month in which X is subject
				to the fee for 100 or more gallons of petroleum product. Satisfactory proof of
				Y's sale to the United States or NATO force is required to be retained by both
				X and Y for at least three years from the end of the calendar year in which the
				petroleum product was sold.
(2) X,
				a distributor, paid the petroleum product loading fee with respect to one
				hundred (100) gallons of petroleum product loaded or imported in May, and
				resold the petroleum product to Y, a wholesaler or dealer, who resold it to Z,
				a retailer. Z sold ten (10) gallons to the United States when a United States
				government vehicle filled up at Z's station in that same May. Z reports to Y
				that this amount of petroleum product had been sold to the United States. If Y
				furnishes satisfactory proof to X, X may deduct ten (10) gallons from the
				amount of petroleum product subject to the fee in that May, or any subsequent
				month in which X is subject to the fee for 100 or more gallons of petroleum
				product. Satisfactory proof of Z's sale to the United States is required to be
				retained by X and Y for at least three years from the end of the calendar year
				in which the petroleum product was sold.
(3) X, a distributor, paid the petroleum
				product loading fee with respect to one hundred (100) gallons of petroleum
				product loaded or imported in May, and resold the petroleum product to Y, a
				wholesaler or dealer. Y delivers in that same May the one hundred (100) gallons
				of petroleum product to a customer in Texas. If Y furnishes satisfactory proof
				to X, X may deduct one hundred (100) gallons from the amount of petroleum
				product subject to the fee in that May, or any subsequent month in which X is
				subject to the fee for 100 or more gallons of petroleum product. Satisfactory
				proof of Y's export is required to be retained by both X and Y for at least
				three years from the end of the calendar year in which the sale was
				made.