New Mexico Administrative Code › Title 3 - TAXATION › Chapter 16 - MOTOR VEHICLE FUEL TAXES › Part 109 - CALCULATION OF EXCISE TAX › Section 3.16.109.11 - INDIRECT SALES TO THE UNITED STATES, THE STATE OF NEW MEXICO, INDIAN NATIONS, TRIBES OR PUEBLOS OR FOR EXPORT

Current through Register Vol. 35, No. 13, July 16, 2024
A. The tax consequences of sales of special
				fuel to the United States, the state of New Mexico, or Indian nations, tribes
				or pueblos or for export 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 special fuel to the
				seller. The fact that the price may include an amount corresponding to the tax
				does not make that amount a tax on the purchaser or change the legal incidence
				of tax.
B. Example 1. X, a
				supplier, received one thousand (1000) gallons of special fuel in May 20xx,
				reported the special fuel excise tax and resold the special fuel to Y, a
				wholesaler. Y sold the special fuel to the United States. If Y furnishes proof
				satisfactory to the department to X, X may either deduct the one thousand
				(1000) gallons from the amount of special fuel received in May, elect to take
				the deduction as a prior period adjustment in a subsequent reporting month in
				which special fuel excise tax is otherwise due, or if no special fuel excise
				tax is due, may claim a refund of the tax paid. Proof satisfactory to the
				department of Y's sale to the government 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
				special fuel was sold to the United States.
C. Example 2. X, a supplier, received and
				reported one thousand (1000) gallons of special fuel in May, 20xx, and sold the
				special fuel to Y, a retailer. Y sold twenty (20) gallons to a United States
				government vehicle using a government credit card. In May, 20xx, Y reports to X
				that this amount of special fuel has been sold to the United States government.
				If Y furnishes proof satisfactory to the department to X, X may deduct twenty
				(20) gallons from the amount of special fuel received in May, elect to take the
				deduction as a prior period adjustment in a subsequent reporting month in which
				special fuel excise tax is otherwise due, or if no special fuel excise tax is
				due, may claim a refund of the tax paid. Proof satisfactory to the department
				of Y's sale to the United States government is required to be retained by X and
				Y for at least three years from the end of the calendar year in which the
				special fuel was sold.
D. Example
				3: X, a supplier, received and reported five thousand (5,000) gallons of
				special fuel in May 20xx and resold the special fuel to Y, another New Mexico
				supplier. Y delivers the five thousand (5,000) gallons of special fuel to a
				customer in another state. If Y furnishes proof satisfactory to the department
				to X, X may deduct five thousand (5,000) gallons from the amount of special
				fuel received in May, elect to take the deduction as a prior period adjustment
				in a subsequent reporting month in which special fuel excise tax is otherwise
				due, or if no special fuel excise tax is due, may claim a refund of the tax
				paid. Proof satisfactory to the department 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.