N.M. Admin. Code § 3.16.3.9

Current through Register Vol. 35, No. 21, November 5, 2024

Section 3.16.3.9 - WHEN GASOLINE IS "RECEIVED" - SHIFT TO REGISTERED DISTRIBUTOR

A. The definition of "received" imposes the gasoline tax in the first instance on first receivers. If, however, gasoline is delivered at a pipeline terminal or refinery in New Mexico by an owner of stored gasoline or refiner to a distributor registered under the Gasoline Tax Act, the incidence of the tax shifts to the registered distributor. In this case the registered distributor has received the gasoline and is responsible for reporting and paying the gasoline tax with respect to the gasoline received. The distributor receiving the gasoline may not further shift the receipt of the gasoline and the obligation to report and pay gasoline tax to any other person, even if the gasoline is subsequently sold or otherwise transferred to another registered distributor.

(1) Example 1: At its refinery in New Mexico, refiner R loads 8,000 gallons of gasoline into a tank truck owned by distributor A. In this case A has received the gasoline at the refinery (the place of delivery) and is responsible for reporting and paying the gasoline tax.

(2) Example 2: Same facts as example 1, except that distributor A then sells some of the gasoline to distributor B and unloads it from the truck into a tank belonging to distributor B. Distributor A has received the gasoline and remains liable for the gasoline tax. Distributor B has not received the gasoline.

(3) Example 3: At the pipeline terminal in New Mexico, gasoline is loaded into a tank truck owned by T, a trucking company. T is not a registered distributor but picks up the gasoline for the account of, and delivers it to, 3 registered distributors. In this case, T has accepted delivery of the gasoline at the pipeline terminal as agent for the distributors. The three distributors have received gasoline and must report and pay gasoline tax in proportion to the gasoline each received.

B. If the first receiver delivers gasoline in this state and the person taking delivery of the gasoline is not a registered distributor and is not taking delivery for the account of any registered distributor, the incidence of the tax remains with the first receiver. The first receiver is responsible for reporting and paying the gasoline tax with respect to the gasoline received. Any person once registered as a distributor but who is no longer listed on the list of registered distributors promulgated by the department is not a registered distributor for any period after the person has been removed from the list.

C. When a first receiver is responsible for reporting and paying gasoline tax, that entity must report in the same time and manner as a registered distributor.

N.M. Admin. Code § 3.16.3.9

8/31/96, 12/31/97, 9/30/99; 3.16.3.9 NMAC - Rn, 3 NMAC 16.3.9, 6/14/01