A. A gasoline inventory tax is imposed measured by the quantity of gallons of gasoline in the possession of a distributor or wholesaler on the day in which an increase in the excise tax imposed by Section 7-13-3 NMSA 1978 is effective. The taxable event is the existence of an inventory in the possession of a distributor or wholesaler on the day prior to the day in which an increase in the excise tax imposed by Section 7-13-3 NMSA 1978 is effective. The rate of the gasoline inventory tax to apply on each gallon of gasoline held in inventory by a distributor or wholesaler, as provided in Section 7-13-3.2 NMSA 1978, shall be the difference between the gasoline excise tax rate imposed on the day prior to the day in which the gasoline excise tax is increased subtracted from the gasoline excise tax rate imposed on the day that the gasoline excise tax rate increase is effective, expressed in cents per gallon.

B. The gasoline inventory tax is to be paid to the department on or before the twenty-fifth day of the month following the month in which the taxable event occurs.

History: 1978 Comp., § 7-13-3.1, enacted by Laws 1979, ch. 166, § 7; 1993, ch. 32, § 3.

The 1993 amendment, effective June 18, 1993, in Subsection A, substituted "the day" for "July 1 of the calendar year" in the first sentence and "the day prior to the day" for "July 1 of the calendar year" in the second sentence, and in the third sentence, substituted "on the day prior to the day" for "through June of the calendar year", deleted "increased" following "subtracted from the", and substituted "the day that the gasoline excise tax rate increase is effective" for "July 1 of that same calendar year"; deleted former Subsection B, pertaining to inclusion in the inventory tax of the selling price of gasoline; redesignated former Subsection C as current Subsection B; and substituted "department" for "division" in current Subsection B.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation § 632.