New Mexico Administrative Code
Title 3 - TAXATION
Chapter 16 - MOTOR VEHICLE FUEL TAXES
Part 112 - DESTRUCTION
Section 3.16.112.7 - DEFINITIONS

(1) An "accident" includes any event happening by chance, unexpectedly taking place or occurring not according to the usual course of events. An event may sometimes be termed accidental even though it results from ordinary negligence.

(2) Example 1: X is a special fuel supplier. X's driver while delivering to a service station negligently dumps diesel fuel into the gasoline storage tank (tank G) and gasoline into the diesel fuel storage tank (tank D). Each tank is nearly full. In order to return the station to operation, X pumps both tanks dry and dumps the resulting mixture into another tank (tank M) which contains a small amount of diesel fuel. In this situation, the diesel fuel dumped into tank G and the diesel fuel in tank D into which gasoline was dumped is "destroyed", because each tank became a mixture that was rendered unusable as a special fuel. All this special fuel was "destroyed" by "accident" within the meaning of Subsection A of Section 3.16.112.7 NMAC, and X may obtain a refund for special fuel excise tax paid on the special fuel dumped into tank G and the special fuel in tank D on submission of satisfactory proof. The special fuel in tank M was also "destroyed" within the meaning of Subsection B of Section 3.16.112.7 NMAC. However, the special fuel in tank M was not "destroyed" by "accident" because X knew there was some special fuel in the tank and knew it would be "destroyed" when the diesel fuel and gasoline mixture was dumped into it. X will not be granted a refund for special fuel excise tax paid on the special fuel in tank M.

(3) Example 2: Y is a special fuel supplier. An underground pipe develops a leak because of corrosion and some special fuel is "destroyed". The department will not grant a refund since corrosion is not an "accident" within the meaning of Section 7-16A-13 NMSA 1978.