New Mexico Administrative Code
Title 3 - TAXATION
Chapter 16 - MOTOR VEHICLE FUEL TAXES
Part 203 - EXEMPTIONS
Section 3.16.203.10 - INDIRECT SALES TO THE UNITED STATES OR A NATO FORCE FOR EXPORT
Universal Citation: 3 NM Admin Code 3.16.203.10
Current through Register Vol. 35, No. 18, September 24, 2024
A. The petroleum products loading fee consequences of sales of petroleum product to the United States or a NATO force by a wholesaler, dealer or retailer or for export for resale and consumption outside of New Mexico are illustrated by the following examples. These examples concern only the liability of the parties to the department and do not affect the obligation of any party to pay the price for the petroleum products to the seller. The fact that the price may include an amount corresponding to the petroleum products loading fee does not make that amount a fee on the purchaser.
B. Examples:
(1) X, a distributor, paid the
petroleum product loading fee with respect to one hundred (100) gallons of
petroleum product loaded or imported in May and resold the petroleum product to
Y, a wholesaler or dealer. Y then sold the petroleum product in that same May
to the United States or a NATO force. If Y furnishes satisfactory proof to X, X
may either deduct the one hundred (100) gallons from the amount of petroleum
product subject to the petroleum product loading fee for that month of May, or
may elect to take the deduction in any subsequent month in which X is subject
to the fee for 100 or more gallons of petroleum product. Satisfactory proof of
Y's sale to the United States or NATO force is required to be retained by both
X and Y for at least three years from the end of the calendar year in which the
petroleum product was sold.
(2) X,
a distributor, paid the petroleum product loading fee with respect to one
hundred (100) gallons of petroleum product loaded or imported in May, and
resold the petroleum product to Y, a wholesaler or dealer, who resold it to Z,
a retailer. Z sold ten (10) gallons to the United States when a United States
government vehicle filled up at Z's station in that same May. Z reports to Y
that this amount of petroleum product had been sold to the United States. If Y
furnishes satisfactory proof to X, X may deduct ten (10) gallons from the
amount of petroleum product subject to the fee in that May, or any subsequent
month in which X is subject to the fee for 100 or more gallons of petroleum
product. Satisfactory proof of Z's sale to the United States is required to be
retained by X and Y for at least three years from the end of the calendar year
in which the petroleum product was sold.
(3) X, a distributor, paid the petroleum
product loading fee with respect to one hundred (100) gallons of petroleum
product loaded or imported in May, and resold the petroleum product to Y, a
wholesaler or dealer. Y delivers in that same May the one hundred (100) gallons
of petroleum product to a customer in Texas. If Y furnishes satisfactory proof
to X, X may deduct one hundred (100) gallons from the amount of petroleum
product subject to the fee in that May, or any subsequent month in which X is
subject to the fee for 100 or more gallons of petroleum product. Satisfactory
proof of Y's export is required to be retained by both X and Y for at least
three years from the end of the calendar year in which the sale was
made.
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