In computing the tax due, the following amounts of special fuel may be deducted from the total amount of special fuel received in New Mexico during the tax period, provided that satisfactory proof thereof is furnished to the department:

A. special fuel received in New Mexico, but exported from this state by a rack operator, special fuel supplier or dealer, other than in the fuel supply tank of a motor vehicle or sold for export by a rack operator or distributor; provided that, in either case:

(1) the person exporting the special fuel is registered in or licensed by the destination state to pay that state's special fuel or equivalent fuel tax;

(2) proof is submitted that the destination state's special fuel or equivalent fuel tax has been paid or is not due with respect to the special fuel; or

(3) the destination state's special fuel or equivalent fuel tax is paid to New Mexico in accordance with the terms of an agreement entered into pursuant to Section 9-11-12 NMSA 1978 with the destination state;

B. special fuel sold to the United States or any agency or instrumentality thereof for the exclusive use of the United States or any agency or instrumentality thereof. Special fuel sold to the United States includes special fuel delivered into the supply tank of a government-licensed vehicle;

C. special fuel sold to the state of New Mexico or any political subdivision, agency or instrumentality thereof for the exclusive use of the state of New Mexico or any political subdivision, agency or instrumentality thereof. Special fuel sold to the state of New Mexico includes special fuel delivered into the supply tank of a government-licensed vehicle;

D. special fuel sold to an Indian nation, tribe or pueblo or any agency or instrumentality thereof for the exclusive use of the Indian nation, tribe or pueblo or any agency or instrumentality thereof. Special fuel sold to an Indian nation, tribe or pueblo includes special fuel delivered into the supply tank of a government-licensed vehicle;

E. special fuel dyed in accordance with federal regulations;

F. special fuel that is number 2 diesel fuel sold for the generation of power to propel a vehicle authorized by contract with the public education department as a school bus; provided that the fuel has a distillation temperature of five hundred degrees Fahrenheit at a ten percent recovery point and six hundred forty degrees Fahrenheit at a ninety percent recovery point;

G. special fuel received in New Mexico on which New Mexico special fuel excise tax was paid by the out-of-state terminal at which the special fuel was loaded, provided that documentation that the special fuel was to be imported into New Mexico was provided to the terminal operator by the person receiving the fuel; and

H. special fuel received in New Mexico that:

(1) prior to July 1, 2014, consists of at least ninety-nine percent vegetable oil or animal fat; provided that the use is restricted to an auxiliary fuel system that is subject to a certificate of conformity pursuant to the federal Clean Air Act; or

(2) is biodiesel received or manufactured and delivered to a rack operator that is within the state for blending or resale.

History: Laws 1992, ch. 51, § 10; 1993, ch. 272, § 6; 1997, ch. 192, § 9; 1998, ch. 44, § 4; 2001, ch. 43, § 1; 2005, ch. 232, § 1; 2006, ch. 74, § 1; 2007, ch. 110, § 3; 2009, ch. 99, § 2; 2009, ch. 99, § 3; 2013, ch. 109, § 2.

Repeals. — Laws 2013, ch. 109, § 4, effective April 2, 2013, repealed Laws 2009, ch. 99, § 3, which would have become effective July 1, 2014.

The 2013 amendment, effective May 1, 2013, provided a deduction for receipt of biodiesel fuel to rack operators for blending and resale; in Paragraph (1) of Subsection H, at the beginning of the sentence, added "prior to July 1, 2014"; and added Paragraph (2) of Subsection H.

Laws 2013, ch. 109, § 6 provided that Laws 2013, ch. 109 is effective on May 1, 2013, provided that prior to May 1, 2013 the provisions of the act are enacted into law, or July 1, 2013.

Laws 2013, ch. 109, § 7, contained an emergency clause and was approved April 2, 2013.

Applicability. — Laws 2013, ch. 109, § 5 provided that the provisions of Laws 2013, ch. 109 apply to special fuel received on or after:

A. May 1, 2013, provided that prior to May 1, 2013, provisions of this act are enacted into law; or

B. July 1, 2013.

The 2009 amendment, effective July 1, 2009, added Subsection H.

The 2007 amendment, effective June 15, 2007, added a new Subsection G to provide a deduction for special fuel received in New Mexico on which New Mexico special fuel tax was paid by the out-of-state terminal at which the special fuel was loaded.

The 2006 amendment, effective May 17, 2006, deleted former Subsection E, which provided a deduction for special fuel sold to the holder of a special bulk storage user permit and delivered in to special bulk storage pursuant to Section 7-16A-8 NMSA 1978.

The 2005 amendment, effective July 1, 2005, added Subsection G to provide a deduction for number 2 diesel fuel sold for the generation of power to propel a school bus.

The 2001 amendment, effective June 15, 2000, deleted "and used in any manner other than for propulsion of motor vehicles on the highways of this state or activities ancillary to that propulsion" from Subsection F.

The 1998 amendment, effective July 1, 1998, in the introductory language deleted "special fuel excise" preceding "tax" and in Subsection F, inserted "dyed in accordance with federal regulations and".

The 1997 amendment, effective June 1, 1997, rewrote Subsections A and F, and made a minor stylistic change in Subsection E.

The 1993 amendment, added current Subsection C and Subsections E and F; redesignated former Subsection C as Subsection D; and made a minor stylistic change.