New Mexico Administrative Code
Title 3 - TAXATION
Chapter 16 - MOTOR VEHICLE FUEL TAXES
Part 110 - COMPUTATION
Section 3.16.110.12 - APPLICATION OF ALTERNATIVE CALCULATION METHOD
Current through Register Vol. 35, No. 18, September 24, 2024
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.
