NMSA 1978, § 7-15A-15 — 7-15A-15

Taxpayers of weight distance tax; surety bond required;
exceptions.

# A.

Except as required in Subsection H of this section, every taxpayer with a
commercial domicile not located in an International Fuel Tax Agreement jurisdiction
shall file with the department a bond on a form approved by the attorney general with a
surety company authorized by the public regulation commission to transact business in
New Mexico as a surety and upon which bond the taxpayer is the principal obligor and
the state the obligee. The bond shall be conditioned upon the prompt filing of true
reports and the payment by the taxpayer to the department of all taxes levied by the
Weight Distance Tax Act, together with all applicable penalties and interest on the
taxes.

# B.

In lieu of the bond, the taxpayer may elect to file with the department cash or
bonds of the United States or New Mexico or of any political subdivision of the state.

# C.

The total amount of the bond, cash or securities required of a taxpayer shall be
fixed by the department and may be increased or reduced by the department at any
time, subject to the limitations provided in this section.

# D.

In fixing the total amount of the bond, cash or securities required of a taxpayer
required to post a bond, the department shall require an amount equivalent to the total
estimated tax due for two quarters; provided, however, that the total amount of bond,
cash or securities required of a taxpayer shall never be less than five hundred dollars
($500) per motor vehicle on which the weight distance tax is imposed.

# E.

In the event the department determines that the amount of the existing bond,
cash or securities is insufficient to ensure payment to New Mexico of the amount of the
weight distance tax and penalties and interest for which a taxpayer is or may at any time
become liable, the taxpayer, upon written demand from the department mailed to the
last known address of the taxpayer as shown on the records of the department, shall file
an additional bond, cash or securities in the manner, form and amount determined by
the department to be necessary to secure at all times the payment by the taxpayer of all
taxes, penalties and interest due pursuant to the Weight Distance Tax Act.

# F.

A surety on a bond furnished by a taxpayer as required by this section shall be
released and discharged from all liability accruing on the bond after the expiration of
ninety days from the date upon which the surety files with the department a written
request to be released and discharged; provided, however, that the request shall not
operate to release or discharge the surety from liability already accrued or that shall
accrue before the expiration of the ninety-day period, unless a new bond is filed during
the ninety-day period, in which case the previous bond may be canceled as of the
effective date of the new bond. On receipt of notice of the request to cancel the bond
due to filing of a new bond, the department shall promptly notify the taxpayer who
furnished the bond that the taxpayer, on or before the expiration of the ninety-day
period, shall file with the department a new bond with a surety satisfactory to the
department in the amount and form required in this section.

# G.

A taxpayer who is required to file a bond with or provide cash or securities to the
department in accordance with this section and who is required by another state law to
file another bond with or provide cash or securities to the department may elect to file a
combined bond or provide cash or securities applicable to the provision of both this
section and the other law, with the approval of the secretary. The amount of the
combined bond, cash or securities shall be determined by the department, and the form
of the combined bond shall be approved by the attorney general.

# H.

A taxpayer who is required to file a bond pursuant to the provisions of this section
and who for the eight consecutive quarters preceding the date of request has not been
a delinquent taxpayer pursuant to the Weight Distance Tax Act may request to be
exempt from the requirement to file a bond beginning with the first day of the first
quarter following the end of the eight-quarter period. If a taxpayer exempted pursuant to
this subsection subsequently becomes a delinquent taxpayer, the department may
terminate the exemption and require the filing of a bond in accordance with this section.
If the department terminates the exemption, the termination shall not be effective any
earlier than ten days after the date the department notifies the taxpayer in writing of the
termination.

# I.

As used in this section, "taxpayer" means a registrant, owner or operator of a
motor vehicle on whom the weight distance tax is imposed.