Current through Register Vol. 35, No. 18, September 24, 2024
A. Generally, special fuel is "received" in
the first instance in the four circumstances specified in Subsection A of
Section 3.16.101.8 NMAC. The rack operator or the importer is the person who
has "received" the special fuel.
(1) Special
fuel produced, refined, manufactured, blended or compounded at a refinery in
this state or stored at a pipeline terminal in this state by any person is
"received" by that person when it is loaded at the refinery or pipeline
terminal into tank cars, tank trucks, tank wagons or other types of
transportation equipment.
(2)
Special fuel produced, refined, manufactured, blended or compounded at a
refinery in this state or stored at a pipeline terminal in this state by any
person is "received" by that person when it is placed into any tank or other
container from which sales or deliveries not involving transportation are
made.
(3) Except for special fuel
imported by pipeline and stored at a pipeline terminal in New Mexico or
imported in the supply tank of a motor vehicle, special fuel imported into this
state is "received" at the time and place it is first imported into this state;
the person who is the owner of the special fuel at the time of importation is
the person who has received the special fuel.
(4) Special fuel is also "received" when it
has been initially received by an Indian tribe within that tribe's territory
and subsequently is moved from that tribe's territory to any other part of New
Mexico, whether for sale or use, by any means other than in the fuel supply
tank of a motor vehicle or by pipeline. The person who owns the fuel at the
time it leaves the tribe's territory must report and pay tax with respect to
the special fuel received. If this person does not report and pay tax, every
other person who subsequently owns the special fuel is liable for the tax until
it is paid. For the purposes of Part 3.16.101 NMAC and for reporting purposes,
a person who has received special fuel under Paragraph (4) of Subsection A of
Section 3.16.101.8 NMAC is an "importer".
B. In the special case in which any substance
other than special fuel is blended to produce special fuel and the blending
takes place at a place other than a refinery or pipeline terminal, the product
becomes special fuel and is "received" at the time and place the blending is
completed. The person who owns the blended product at the time of blending is
the person who must report and pay tax with respect to the product
received.
C. When a rack operator
is the first person to "receive" special fuel, the incidence of the tax and the
obligation to report and pay the special fuel excise tax can be shifted to
registered suppliers. See Section 3.16.101.9 NMAC. When an importer, including
a person receiving special fuel under Subsection B of Section 3.16.101.8 NMAC,
is the first person to "receive" special fuel, the incidence of the tax and the
obligation to report remain with the importer and may not be shifted to
registered suppliers.
D. This
version of Section 3.16.101.8 NMAC applies to special fuel received on or after
June 1, 1997.
