A. The purpose of the deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts and from compensating tax is to encourage the construction, renovation, maintenance and operation of railroad locomotive refueling facilities and other railroad capital investments in New Mexico.
B. To be eligible for the deduction on fuel loaded or used by a common carrier in a locomotive engine from compensating tax, the fuel shall be used or loaded by a common carrier that:
(1) after July 1, 2011, made a capital investment of one hundred million dollars ($100,000,000) or more in new construction or renovations at the railroad locomotive refueling facility in which the fuel is loaded or used; or
(2) on or after July 1, 2012, made a capital investment of fifty million dollars ($50,000,000) or more in new railroad infrastructure improvements, including railroad facilities, track, signals and supporting railroad network, located in New Mexico; provided that the new railroad infrastructure improvements are not required by a regulatory agency to correct problems, such as regular or preventive maintenance, specifically identified by that agency as requiring necessary corrective action.
C. To be eligible for the deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts, a common carrier shall deliver an appropriate nontaxable transaction certificate to the seller and the sale shall be made to a common carrier that:
(1) after July 1, 2011, made a capital investment of one hundred million dollars ($100,000,000) or more in new construction or renovations at the railroad locomotive refueling facility in which the fuel is sold; or
(2) on or after July 1, 2012, made a capital investment of fifty million dollars ($50,000,000) or more in new railroad infrastructure improvements, including railroad facilities, track, signals and supporting railroad network, located in New Mexico; provided that the new railroad infrastructure improvements are not required by a regulatory agency to correct problems, such as regular or preventative maintenance, specifically identified by that agency as requiring necessary corrective action.
D. The economic development department shall promulgate rules for the issuance of a certificate of eligibility for the purposes of claiming a deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts or compensating tax. A common carrier may request a certificate of eligibility from the economic development department to provide to the taxation and revenue department to establish eligibility for a nontaxable transaction certificate for the deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts. The taxation and revenue department shall issue nontaxable transaction certificates to a common carrier upon the presentation of a certificate of eligibility obtained from the economic development department pursuant to this subsection.
E. The economic development department shall keep a record of temporary and permanent jobs from all railroad activity where a capital investment is made by a common carrier that claims a deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts or from compensating tax. The economic development department and the taxation and revenue department shall estimate the amount of state revenue that is attributable to all railroad activity where a capital investment is made by a common carrier that claims a deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts or from compensating tax.
F. The economic development department and the taxation and revenue department shall compile an annual report with the number of taxpayers who claim the deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts and from compensating tax, the number of jobs created as a result of that deduction, the amount of that deduction approved, the net revenue to the state as a result of that deduction and any other information required by the legislature to aid in evaluating the effectiveness of that deduction. A taxpayer who claims a deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts or from compensating tax shall provide the economic development department and the taxation and revenue department with the information required to compile that report. The economic development department and the taxation and revenue department shall present that report before the legislative interim revenue stabilization and tax policy committee and the legislative finance committee by November of each year. Notwithstanding any other section of law to the contrary, the economic development department and the taxation and revenue department may disclose the number of applicants for the deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts and from compensating tax, the amount of the deduction approved, the number of employees of the taxpayer and any other information required by the legislature or the taxation and revenue department to aid in evaluating the effectiveness of that deduction.
G. An appropriate legislative committee shall review the effectiveness of the deduction for each taxpayer who claims the deduction on fuel loaded or used by a common carrier in a locomotive engine from gross receipts and from compensating tax every six years beginning in 2019.
History: Laws 2011, ch. 60, § 3; 2011, ch. 61, § 3; 2013, ch. 123, § 1.
Repeals. — Laws 2013, ch. 123, § 2 repealed Laws 2011, ch. 60, §§ 4 and 5 and Laws 2011, ch. 61, §§ 4 and 5, effective July 1, 2013.
The 2013 amendment, effective July 1, 2013, expanded the deduction for locomotive fuel from gross receipts and compensating tax; in Subsection A, after "refueling facilities and", deleted "related activities" and added "other railroad capital investments"; added Paragraph (1) of Subsection B; in Subsection C, in the introductory sentence, after "gross receipts", added "a common carrier shall deliver an appropriate nontaxable transaction certificate to the seller and"; in Paragraph (1) of Subsection B, after "the fuel is sold", deleted "and the common carrier shall deliver an appropriate nontaxable transaction certificate to the seller"; added Paragraph (2) of Subsection C; in Subsection E, after "from all railroad activity", deleted "at each railroad locomotive refueling facility" and added "where a capital investment is made by a common carrier" and after "attributable to all railroad activity", deleted "occurring at each locomotive refueling facility" and added "where a capital investment is made by a common carrier"; and in Subsection G, after "deduction", added "for each taxpayer who claims the deduction".
Severability. — Laws 2013, ch. 123, § 3 provided that if any part or application of Laws 2013, ch. 123, § 1 is held invalid, the remainder or its application to other situations or persons shall not be affected.
Applicability. — Laws 2013, ch. 123, § 4 provided that deductions provided in Laws 2013, ch. 123, § 1 apply to gross receipts tax and compensating tax reporting periods beginning on or after July 1, 2013.
Structure 2021 New Mexico Statutes
Article 9 - Gross Receipts and Compensating Tax
Section 7-9-3 - Definitions. (Effective January 1, 2022.)
Section 7-9-3.2 - Additional definition.
Section 7-9-3.3 - Definition; engaging in business.
Section 7-9-3.5 - Definition; gross receipts.
Section 7-9-4 - Imposition and rate of tax; denomination as "gross receipts tax".
Section 7-9-4.3 - Imposition and rate of tax; denomination as "governmental gross receipts tax".
Section 7-9-5 - Presumption of taxability.
Section 7-9-6 - Separately stating the gross receipts tax.
Section 7-9-7 - Imposition and rate of tax; denomination as "compensating tax".
Section 7-9-7.2 - Authority to establish standards for certified service providers.
Section 7-9-8 - Presumption of taxability and value.
Section 7-9-9 - Liability of user for payment of compensating tax.
Section 7-9-10 - Agents for collection of compensating tax; duties.
Section 7-9-11 - Date payment due.
Section 7-9-13 - Exemption; gross receipts tax; governmental agencies.
Section 7-9-13.1 - Exemption; gross receipts tax; certain services.
Section 7-9-14 - Exemption; compensating tax; governmental agencies; Indians.
Section 7-9-15 - Exemption; compensating tax; certain organizations.
Section 7-9-16 - Exemption; gross receipts tax; certain nonprofit facilities.
Section 7-9-17 - Exemption; gross receipts tax; wages.
Section 7-9-18.1 - Exemption; gross receipts tax; food stamps.
Section 7-9-19 - Exemption; gross receipts tax; livestock feeding.
Section 7-9-20 - Exemption; gross receipts tax; certain receipts of homeowners associations.
Section 7-9-22 - Exemption; gross receipts tax; vehicles.
Section 7-9-22.1 - Exemption; gross receipts tax; boats.
Section 7-9-23 - Exemption; compensating tax; vehicles.
Section 7-9-23.1 - Exemption; compensating tax; boats.
Section 7-9-24 - Exemption; gross receipts tax; insurance companies.
Section 7-9-25 - Exemption; gross receipts tax; dividends and interest.
Section 7-9-26 - Exemption; gross receipts and compensating tax; fuel.
Section 7-9-26.1 - Exemption; gross receipts tax and compensating tax; fuel for space vehicles.
Section 7-9-27 - Exemption; compensating tax; personal effects.
Section 7-9-28 - Exemption; gross receipts tax; occasional sale of property or services.
Section 7-9-29 - Exemption; gross receipts tax; certain organizations; exceptions.
Section 7-9-30 - Exemption; compensating tax; railroad equipment, aircraft and space vehicles.
Section 7-9-32 - Exemption; gross receipts tax; oil and gas or mineral interests.
Section 7-9-38.1 - Exemption; gross receipts tax; interstate telecommunications services.
Section 7-9-38.2 - Exemption; gross receipts tax; sale of certain telecommunications services.
Section 7-9-39 - Exemption; gross receipts tax; fees from social organizations.
Section 7-9-41 - Exemption; gross receipts tax; religious activities.
Section 7-9-41.3 - Exemption; receipts from sales by disabled street vendors.
Section 7-9-41.5 - Exemption; nonprofit hospitals from local option gross receipts taxes.
Section 7-9-43.1 - Nontaxable transaction certificates not required by liquor wholesalers.
Section 7-9-46 - Deduction; gross receipts tax; governmental gross receipts; sales to manufacturers.
Section 7-9-50 - Deduction; gross receipts tax; lease for subsequent lease.
Section 7-9-54.4 - Deduction; compensating tax; space-related test articles.
Section 7-9-54.5 - Deduction; compensating tax; test articles.
Section 7-9-56.1 - Deduction; gross receipts tax; internet services.
Section 7-9-56.2 - Deduction; gross receipts tax; hosting world wide web sites.
Section 7-9-56.3 - Deduction; gross receipts; trade-support company in a border zone.
Section 7-9-57 - Deduction; gross receipts tax; sale of certain services to an out-of-state buyer.
Section 7-9-57.2 - Deduction; gross receipts tax; sale of software development services.
Section 7-9-58 - Deduction; gross receipts tax; feed; fertilizers.
Section 7-9-61.1 - Deduction; gross receipts tax; certain receipts.
Section 7-9-61.2 - Deduction; receipts from sales to state-chartered credit unions.
Section 7-9-63 - Deduction; gross receipts tax; publication sales.
Section 7-9-64 - Deduction; gross receipts tax; newspaper sales.
Section 7-9-65 - Deduction; gross receipts tax; chemicals and reagents.
Section 7-9-66 - Deduction; gross receipts tax; commissions.
Section 7-9-66.1 - Deduction; gross receipts tax; certain real estate transactions.
Section 7-9-68 - Deduction; gross receipts tax; warranty obligations.
Section 7-9-69 - Deduction; gross receipts tax; administrative and accounting services.
Section 7-9-71 - Deduction; gross receipts tax; trade-in allowance.
Section 7-9-73.1 - Deduction; gross receipts; governmental gross receipts; hospitals.
Section 7-9-74 - Deduction; gross receipts tax; sale of property used in the manufacture of jewelry.
Section 7-9-76 - Deduction; gross receipts tax; travel agents' commissions paid by certain entities.
Section 7-9-76.1 - Deduction; gross receipts tax; certain manufactured homes.
Section 7-9-76.2 - Deduction; gross receipts tax; films and tapes.
Section 7-9-77 - Deductions; compensating tax.
Section 7-9-77.1 - Deduction; gross receipts tax; certain medical and health care services.
Section 7-9-78 - Deductions; compensating tax; use of tangible personal property for leasing.
Section 7-9-78.1 - Deduction; compensating tax; uranium enrichment plant equipment.
Section 7-9-79 - Credit; compensating tax.
Section 7-9-79.1 - Credit; gross receipts tax; services.
Section 7-9-79.2 - Gross receipts tax; compensating tax; biodiesel blending facility tax credit.
Section 7-9-83 - Deduction; gross receipts tax; jet fuel.
Section 7-9-84 - Deduction; compensating tax; jet fuel.
Section 7-9-85 - Deduction; gross receipts tax; certain organization fundraisers.
Section 7-9-86 - Deduction; gross receipts tax; sales to qualified film production company.
Section 7-9-87 - Deduction; gross receipts tax; lottery retailer receipts.
Section 7-9-88.1 - Credit; gross receipts tax; tax paid to certain tribes.
Section 7-9-92 - Deduction; gross receipts; sale of food at retail food store.
Section 7-9-94 - Deduction; gross receipts; military transformational acquisition programs.
Section 7-9-96.2 - Credit; gross receipts tax; unpaid charges for services provided in a hospital.
Section 7-9-98 - Deduction; compensating tax; biomass-related equipment; biomass materials.
Section 7-9-103.1 - Deduction; gross receipts tax; converting electricity.
Section 7-9-103.2 - Deduction; gross receipts; electricity exchange.
Section 7-9-105 - Credit for penalty pursuant to Section 7-1-71.2 NMSA 1978 [repealed].
Section 7-9-106 - Deduction; construction services and equipment.
Section 7-9-107 - Deduction; gross receipts tax; production or staging of professional contests.
Section 7-9-110.1 - Deduction; gross receipts tax; locomotive engine fuel.
Section 7-9-110.2 - Deduction; compensating tax; locomotive engine fuel.
Section 7-9-110.3 - Purpose and requirements of locomotive fuel deduction.
Section 7-9-111 - Deduction; gross receipts; hearing aids and vision aids and related services.
Section 7-9-112 - Deduction; gross receipts; solar energy systems.
Section 7-9-114 - Advanced energy deduction; gross receipts and compensating taxes.
Section 7-9-116 - Deduction; gross receipts tax; retail sales by certain businesses.
Section 7-9-117 - Deduction; gross receipts; governmental gross receipts; marketplace seller.
Section 7-9-118 - Deduction; gross receipts; food or beverage establishments.
Section 7-9-119 - Deduction; sales made by dispenser's license holder.