NMSA 1978, § 7-13A-5 — 7-13A-5

Deduction; gasoline or special fuels returned; biodiesel for
subsequent blending or resale by a rack operator.

# A.

Refunds and allowances made to buyers for gasoline or special fuels returned to
the refiner, pipeline terminal operator or distributor or amounts of gasoline or special
fuels, the payment for which has not been collected and has been determined to be
uncollectible pursuant to rules issued by the secretary may be deducted from gallons
used to determine loads for the purposes of calculating the petroleum products loading
fee. If such a payment is subsequently collected, the gallons represented shall be
included in determining loads. The deduction under the provisions of this section shall
not be allowed if the petroleum products loading fee has not been paid previously on the
petroleum products that were returned to the seller or the sale of which created an
uncollectible debt.

# B.

Biodiesel, as defined in the Special Fuels Supplier Tax Act [Chapter 7, Article
16A NMSA 1978], loaded in or imported into New Mexico and delivered to a rack
operator for subsequent blending or resale by a rack operator may be deducted from
gallons used to determine loads for the purposes of calculating the petroleum products
loading fee.

# C.

A taxpayer that deducts an amount of biodiesel pursuant to Subsection B of this
section shall report the deducted amount separately with the taxpayer's return in a
manner prescribed by the department.

# D.

The deduction provided by this section shall be included in the tax expenditure
budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of
the deduction.

# E.

For purposes of this section, "rack operator" means the operator of a refinery in
this state or the owner of special fuel stored at a pipeline terminal in this state.