New Mexico Administrative Code
Title 3 - TAXATION
Chapter 16 - MOTOR VEHICLE FUEL TAXES
Part 4 - GASOLINE TAX - DEDUCTIONS
Section 3.16.4.10 - INDIRECT SALES TO THE UNITED STATES OR FOR EXPORT
Universal Citation: 3 NM Admin Code 3.16.4.10
Current through Register Vol. 35, No. 18, September 24, 2024
A. The tax consequences of sales of gasoline to the United States or for export by a wholesaler or retailer 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 gasoline to the seller. The fact that the price may include an amount corresponding to the tax does not make that amount a tax on the purchaser.
B. Examples:
(1) X, a distributor, received one hundred
(100) gallons of gasoline in May, paid the gasoline tax and resold the gasoline
to Y, a wholesaler. Y then sold the gasoline to the United States. Y reported
this sale on the monthly report to the department as required by Section
7-13-6
NMSA 1978. If Y furnishes satisfactory proof to X, X may either deduct the one
hundred (100) gallons from the amount of gasoline received for that month of
May or may elect to take the deduction in any subsequent month in which
gasoline is received. Satisfactory proof of Y's sale to the government 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 gasoline was sold.
(2) X, a distributor, received one hundred
(100) gallons of gasoline in May, paid the gasoline tax and resold the gasoline
to Y, a wholesaler, 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. Z reports to Y that this amount of gasoline had been sold to the
United States. Y reported this sale on the monthly report to the department as
required by Section
7-13-6
NMSA 1978. If Y furnishes satisfactory proof to X, X may deduct ten (10)
gallons from the amount of gasoline received in that month of May or any
subsequent month in which gasoline is received. 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 gasoline was
sold.
(3) X, a distributor,
received one hundred (100) gallons of gasoline in May, paid the gasoline tax
and resold the gasoline to Y, a wholesaler. Y delivers the one hundred (100)
gallons of gasoline to a customer in Texas. Y reported this export sale on the
monthly report pursuant to Section
7-13-6
NMSA 1978. If Y furnishes satisfactory proof to X, X may deduct one hundred
(100) gallons from the amount of gasoline received in that month of May or any
subsequent month in which gasoline is received. 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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