New Mexico Administrative Code
Title 3 - TAXATION
Chapter 16 - MOTOR VEHICLE FUEL TAXES
Part 102 - EXCLUSION
Section 3.16.102.10 - PREEMPTION OF TAX BY FEDERAL LAW

A. Special fuel received by an Indian tribe on its own territory is not subject to the taxes imposed by the Special Fuels Supplier Tax Act if taxation of the special fuel received is prohibited by federal law.

B. If an Indian tribe is a supplier, it receives special fuel on its own territory when:

C. If an Indian tribe is a supplier and it receives special fuel at any place in New Mexico other than on the tribe's territory, imposition of the tax is not barred by federal law and the Indian tribe must report and pay special fuel excise tax. Example: Z is a member of an Indian tribe T and is registered as a supplier. Z hires tank trucks to pick up loads of special fuel at a rack which is not on T's territory. Z receives the special fuel at that rack. Z owes special fuel excise tax on the special fuel received.

D. Like any other supplier, an Indian tribe that is a registered supplier cannot receive special fuel previously received by another supplier.

E. Special fuel received by an Indian tribe on its own reservation but subsequently transported into any other part of New Mexico, other than by pipeline or in the fuel supply tank of a motor vehicle, becomes subject to the special fuel excise tax as soon as it leaves the tribe's territory, even if still owned by the Indian tribe.