NMSA 1978, § 7-16A-2.1 — 7-16A-2.1

When special fuel received or used; who is required to
pay tax.

# A.

A rack operator receives special fuel at the time and place when the rack
operator first loads the special fuel at the refinery or pipeline terminal into tank cars,
tank trucks, tank wagons or any other type of transportation equipment or when the rack
operator places the special fuel into any tank or other container in this state from which
sales or deliveries not involving transportation are made. A rack operator who receives
special fuel is required to pay the tax on the special fuel received, except as provided
otherwise in Subsection B of this section. Special fuel is not received when it is shipped
from one refinery or pipeline terminal to another refinery or pipeline terminal.

# B.

When the rack operator first loads special fuel at the refinery or pipeline terminal
into tank cars, tank trucks, tank wagons or any other type of transportation equipment
for the account of another person who is registered with the department as a supplier
and is taxable under the Special Fuels Supplier Tax Act, that person receives the
special fuel and is required to pay the tax.

# C.

Special fuel imported into New Mexico by any means other than in the supply
tank of a motor vehicle or by pipeline is received at the time and place it is imported into
this state. The person who owns the special fuel at the time of importation receives the
special fuel and is required to pay the tax.

# D.

If special fuel is received within the exterior boundaries of an Indian reservation
or pueblo grant and the person required to pay the tax is immune from state taxation,
the special fuel is also received when the special fuel is transported off the reservation
or pueblo grant by any means other than in the fuel supply tank of a motor vehicle or by
pipeline. Any person who owns special fuel after the special fuel is transported off the
reservation or pueblo grant receives the special fuel and is the person required to pay
the tax, unless the tax has been paid by a previous owner.

# E.

Except as provided in Subsection F of this section, special fuel is used in New
Mexico when it is put into the supply tank of any motor vehicle registered, owned or
operated by a special fuel user, consumed by a special fuel user in the propulsion of a
motor vehicle on the highways of this state or any activity ancillary to that propulsion, or
imported into the state in the fuel supply tank of any motor vehicle for the propulsion of
the motor vehicle on New Mexico highways.

# F.

To the extent that a special fuel user whose use of New Mexico highways is
limited to that for which the special fuel user holds a valid border crossing special fuel
user permit, as provided for in Section 1 of this 2018 act [7-16A-19.1 NMSA 1978], the
special fuel user does not use special fuel in this state.