CHAPTER
16: MOTOR VEHICLE FUEL TAXES
PART
110: SPECIAL FUELS TAX -
COMPUTATION
3.16.110.1 ISSUING AGENCY: Taxation and
Revenue Department, Joseph M. Montoya Building, 1100 South St. Francis Drive,
P.O. Box 630, Santa Fe NM 87504-0630
[12/31/96; 3.16.110.1 NMAC - Rn, 3 NMAC
20.11.1, 6/14/01]
3.16.110.2 SCOPE: This part applies to every person receiving or using special
fuel in New Mexico.
[12/31/96; 3.16.110.2 NMAC - Rn, 3 NMAC
20.11.2, 6/14/01]
3.16.110.3 STATUTORY AUTHORITY: Section 9-11-6.2 NMSA
1978.
[12/31/96; 3.16.110.3 NMAC - Rn, 3 NMAC
20.11.3, 6/14/01]
3.16.110.4 DURATION: Permanent.
[12/31/96; 3.16.110.4 NMAC - Rn, 3 NMAC
20.11.4, 6/14/01]
3.16.110.5 EFFECTIVE DATE: 12/31/96, unless a later date is cited at the end
of a section, in which case the later date is the effective date.
[12/31/96; 3.16.110.5 NMAC - Rn, 3 NMAC
20.11.5 & A, 6/14/01]
3.16.110.6 OBJECTIVE: The objective of this part is to interpret, exemplify,
implement and enforce the provisions of the Special Fuels Supplier Tax Act.
[12/31/96; 3.16.110.6 NMAC - Rn, 3 NMAC
20.11.6, 6/14/01]
3.16.110.7 DEFINITIONS: [Reserved.]
[12/31/96; 3.16.110.7 NMAC - Rn, 3 NMAC
20.11.7, 6/14/01]
3.16.110.8 COMPUTATION OF MILES-PER-GALLON FACTOR:
A. For purposes of calculating the gallons of special fuel
used on the highways of this state, any computation of the average miles per
gallon everywhere shall be carried out to two significant decimal places.
Rounding rules for the third decimal place are:
(1) round down if the
digit is a zero, 1, 2, 3, or 4; and
(2) round up if the
digit is a 5, 6, 7, 8, or 9.
B. Example 1:
Trucker's fleet logged 1,000,000 miles with 100,000 traveled in New
Mexico. Trucker used 202,100 gallons of special fuel. Trucker has used 20,202
gallons in New Mexico, computed as follows:
1,000,000
miles everywhere
divided
by 202,100 gallons of special fuel
everywhere
equals 4.948 = 4.95 average miles per gallon
100,000
New Mexico miles
divided
by 4.95 average miles per gallon
equals 20,202 New Mexico special fuel gallons
C. Example 2:
Hauler's fleet traveled 2,000,000 miles, 500,000 of which were in New
Mexico. Hauler used 413,050 gallons of special fuel during the reporting period.
Hauler has used 103,306 gallons of special fuel in New Mexico, computed as
follows:
2,000,000
miles everywhere
divided
by 413,050 gallons of special fuel
everywhere
equals 4.842 = 4.84 average miles per gallon
500,000
New Mexico miles
divided
by 4.84 average miles per gallon
equals 103,306 New Mexico special fuel gallons
[2/1/93, 12/31/96; 3.16.110.8 NMAC - Rn, 3 NMAC
20.11.8, 6/14/01]
3.16.110.9 REQUIRED RECORDS: Special fuel users shall maintain the following
records on a reporting period basis. All records shall be referenced by vehicle
unit number.
A. Vehicle trip mileage records for each vehicle operated in
New Mexico. The mileage records shall reflect the total miles traveled in every
state and country and the total miles traveled in New Mexico.
B. Vehicle itineraries including each vehicle trip origin
and destination point, and routes taken.
C. Total quantities of special fuel placed into the fuel
supply tank(s) of each vehicle and the location and date of each acquisition of
special fuel.
[2/1/93, 12/31/96; 3.16.110.9 NMAC - Rn, 3 NMAC
20.11.9, 6/14/01]
3.16.110.10 ALTERNATIVE
CALCULATION AVAILABLE FOR CERTAIN VEHICLES:
A. An alternative calculation to determine the special fuel
excise tax due under Section 7-16A-11 NMSA 1978 is
available under Section 3.16.110.12 NMAC for vehicles
which:
(1) are registered
with the state under the annual renewal program or the international
registration program (IRP);
(2) are equipped with a power take-off (PTO)
from the transmission or main engine to operate some form of auxiliary
equipment or a non-automotive apparatus mounted on the vehicle, provided a
common supply tank for special fuel is used to propel the vehicle along the highway
and to operate the auxiliary equipment or non-automotive apparatus; and
(3) are equipped with an operating odometer,
if the vehicle is a non-combination vehicle; if the vehicle is a combination,
the tractor must have an operating odometer and the trailer or semitrailer must
have an operating hub mileage gauge known as a “hubometer”.
B. In addition, the owner or operator of the vehicle must:
(1) have applied for
and been issued an annual special fuel permit and tax qualification card, valid
for the vehicle; and
(2) be registered
with the department under Section 7-1-12 NMSA 1978 as
a CRS taxpayer for reporting and remitting compensating tax.
C. An annual election to use the alternative computation is
made for each eligible vehicle by a declaration on form SF-11 specifying the
type of vehicle, the principle use of the vehicle if not self-explanatory by
type, the vehicle identification number of the power unit, type of auxiliary
equipment or non-automotive apparatus, the use of odometer or hubometer or notification of the absence of either for
agricultural or construction equipment and the name and address of the owner
and operator. Use of the alternative calculation is mandatory for each
specified vehicle for the entire calendar year, or portion thereof in the case
of a newly registered vehicle.
[2/1/93, 12/31/96; 3.16.110.10 NMAC - Rn, 3 NMAC
20.11.10 & A, 6/14/01]
3.16.110.11 RECORDS
REQUIRED FOR ALTERNATIVE CALCULATION METHOD:
A. The alternative calculation may be used only when the
auxiliary equipment or non-automotive apparatus is in use in New Mexico. A
contemporaneous daily trip report must be maintained for each vehicle using the
alternative calculation method. At a minimum, date, beginning hub or odometer
miles and time, ending hub or odometer miles and time and miles traveled must
be entered on the daily trip report. The log must clearly identify the times
the auxiliary equipment or non-automotive apparatus was in use.
B. In addition to the daily trip record, the driver, owner
or operator of the vehicle must record all fuel purchases by date, price per
gallon, gallons delivered into the main supply tank of the vehicle, and the
total cost of the fuel. This recordation is required even if the fuel is
withdrawn from bulk storage. In the case of bulk fuel withdrawal, any
reasonable method of determining and allocating cost will be accepted by the
department. This reasonable method must be documented in writing.
C. Failure to maintain and retain the required trip reports
and fuel records will result in disallowance of the alternative computation
method, and special fuel excise tax will be assessed on all fuel consumed in
the state, whether for PTO use or propelling the vehicle.
[2/1/93, 12/31/96; 3.16.110.11 NMAC - Rn, 3 NMAC
20.11.11, 6/14/01]
3.16.110.12 APPLICATION
OF ALTERNATIVE CALCULATION METHOD:
A. All special fuel used to propel the vehicle, or
associated with such propulsion, must be reported as taxable. No exclusions,
adjustments or allowances for idling time or use of special fuel for
propulsion, or associated with propulsion, are permitted in using the
alternative calculation method.
B. The following factors shall be used:
If
gross declared vehicle weight Then, the assumed
is at least: But
is less than: mpg
factor is:
12,000
pounds 26,000
pounds 4.50 mpg
26,001
pounds 54,000
pounds 4.35 mpg
54,001
pounds 80,000
pounds 4.00 mpg
80,001
pounds or over 3.85 mpg
C. The specified assumed mpg factor may be subject to
adjustment if the special fuel user can establish through clear and compelling
evidence presented in the form of a ruling request addressed to the department
that a different mpg factor is appropriate. The specified assumed mpg factor
must be used until a formal ruling is issued by the department to the special
fuel user.
D. Determine the average cost of special fuel purchased
during the period by dividing the total cost of the purchased fuel by the total
gallons purchased. Divide the number of propelled miles by the mpg factor for
the appropriate weight class to determine the number of gallons used for
propulsion. Subtract the number of gallons used for propulsion from the number
of total gallons to obtain the number of gallons used in the operation of
auxiliary equipment or non-automotive apparatus (PTO gallons). Multiply PTO
gallons by the average price of special fuel to determine the value of fuel
used for non-propulsion purposes. This value multiplied by the compensating tax
rate provided in Section 7-9-7 NMSA 1978 will
determine the amount of compensating tax due on special fuel for non-propulsion
purposes.
E. If an election to use the alternative computation method
was made for more than one vehicle, the calculation must be performed
separately for each vehicle.
[2/1/93, 12/31/96; 3.16.110.12 NMAC - Rn, 3 NMAC
20.11.12 & A, 6/14/01]
3.16.110.13 NO
OTHER EXCLUSIONS, ADJUSTMENTS OR ALLOWANCES PROVIDED:
A. No other exclusions, adjustments or allowances for
special fuel used for non-propulsion purposes, other than the alternative
computation method provided in Sections 3.16.110.10 through 3.16.110.12 NMAC, are allowable in determining special fuel excise tax
liability under Section 7-16A-11 NMSA 1978.
B. Idling time associated with on-highway use of a motor
vehicle is taxable at the special fuel excise tax rate provided in Section
7-16A-3 NMSA 1978. Evidence from “black box” records,
or similar computerized monitoring equipment, is not accepted in determining
fleet fuel consumption.
[2/1/93, 12/31/96; 3.16.110.13 NMAC - Rn, 3 NMAC
20.11.13 & A, 6/14/01]
HISTORY
OF 3.16.110 NMAC:
Pre-NMAC History: The material in this part was derived from
that previously filed with the State Records Center:
TRD
Rule SFS-93, Regulations Pertaining to the Special Fuels Supplier Tax Act,
Sections 7-16A-1 to 7-16A-20 NMSA 1978, filed 2/1/93.
History of Repealed Material: [RESERVED]
NMAC History:
3
NMAC 20.11, Special and Alternative Fuels Tax -
Computation, filed 12/17/96
3.16.110
NMAC, Special Fuels Tax - Computation, filed 6/1/01.