Motor carrier fuel/Highway use/Mileage tax - New Mexico

International Fuel Tax Agreement (IFTA)

IFTA applies to qualified vehicles operating in more than one IFTA jurisdiction. A qualified motor vehicle is a motor vehicle used, designed, or maintained for transportation of persons or property and that:

• Has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; or
• Has three or more axles regardless of weight; or
• Is used in combination, when the weight of such combination exceeds 26,000 pounds gross vehicle weight.

Qualified motor vehicle does include vehicles operating intrastate, but does not include recreational vehicles.

Fuel use tax

Owners or operators of vehicles powered by special fuel must obtain Special Fuel Users Permits with the Motor Vehicle Division if the:

• Vehicle is registered with the Division and has a gross vehicle weight or combination gross vehicle weight exceeding 26,000 pounds; or
• Owner or operator wants a flat-fee LPG permit; or
• Vehicles are fueled from a private special fuel bulk-storage facility located in New Mexico; or
• Owner or operator wants a special bulk-storage user permit.

The flat-fee alternative fuel cab card authorizes the purchase of tax-excluded LPG fuel. The registrant pays an annual flat fee in lieu of the fuel tax. (Option for LPG powered vehicles 54,000 pounds or less).

Vehicles that have a gross weight of less then 26,000 pounds and for which special fuel is obtained solely from retail service stations do not need a special fuel permit. For these vehicles, the fuel tax is paid at the pump.

The TRD will also issue Special Bulk-Storage User Permits for off highway use only. These permits authorize vehicle owners to buy “excise” tax free special fuel in bulk. The owner must also purchase fuel from bona fide licensed special fuel dealers.

First-time registrants must complete Form TMT-10364, “Initial Registration Application”. A computerized TMT-10364 is sent to all previously registered carriers as part of their renewal packet. Registrants must give the exact location of their operational records and the name and telephone number of the person responsible for maintaining them.

To add a vehicle to an existing registered fleet, complete Form TMT-10327, “Vehicle Listing Form,” making sure to enter all vehicle data, especially the correct gross weight.

Tax Reports. Some carriers may report and pay their fuel and weight-distance taxes annually. To be eligible for annual reporting, your total combined taxes must not exceed $500 during a calendar year. Carriers who wish to take advantage of this must submit a notarized statement officially requesting annual reporter status. The statement must include the total miles the registrant anticipates operating during the calendar year. For further details, call or write the Motor Transportation Division, Registration Section. Carriers who don’t qualify for annual reporting must submit tax reports quarterly.

A bond is not required unless the taxpayer is domiciled in a non-IFTA jurisdiction.

Mileage/Highway use taxes

The Tax and Revenue Department also assesses a Road-Use Tax (Weight-Distance Tax) on motor vehicles whose declared gross vehicle weight (DGVW) exceeds 26,000 pounds and which are:

• Base-licensed in New Mexico; or
• Operated solely in New Mexico, regardless of base state; or
• Registered in New Mexico under prorate or reciprocity; or
• Registered in New Mexico under a W-D, WDFT, or Interstate License plate.

All carriers operating on New Mexico highways must register and report and pay weight distance tax quarterly, or be subjected to the trip tax each time they enter or exit the state. An IFTA license and decals do not replace the Tax Identification Card.

To obtain a Weight Distance Tax E-Permit, carriers are required to apply at https://tap.state.nm.us/tap/_/ and pay permit fees online. The weight distance E-Permit is valid for the calendar year for which they are issued. There is a $10 administrative fee imposed per vehicle including annual renewals and replacements. Carriers with two or more trucks must e-file the weight distance tax. Taxpayers with only one truck are not required, but encouraged, to e-file the weight distance tax. Refer to www.tax.newmexico.gov/Online-Services/default.aspx for more information.

Carriers are not required to carry tax credentials in their vehicles.

When applying for the Tax Identification Cards, weight categories are based on total loaded gross weight, which is defined as the total loaded weight of a vehicle or vehicle combination, including the heaviest load that will be transported at any time during the registration year.

The Weight-Distance Tax applies to all New Mexico miles operated by the vehicle. It is computed by multiplying the miles traveled in New Mexico by the applicable mill rate.

Temporary IRP/Tax Identification Permits will be issued by New Mexico only for new accounts and new vehicles added to existing accounts. No other temporaries will be issued until all applications have been received by the Commercial Vehicles Bureau. Carriers must request the temporary at the time the completed application is submitted.

One-Way Haul. Vehicles authorized as “One-Way Haul” vehicles are assessed a tax rate ²/₃ of the normal mills-per-mile rate imposed on weight-distance (full fee) vehicles. To qualify for one-way haul status, a vehicle’s loaded New Mexico mileage cannot exceed 55 percent of its total annual New Mexico mileage. The registrant must also fully describe his operations on Form TMT-10364, including a complete description of backhauls. To substantiate the original one-way haul request, applicants must keep complete records, including trip reports, log book entries, freight bills, etc. The records are also needed for determining the empty and loaded mileage figures to be entered on the registrant’s tax report. Incomplete or incorrect records or erroneous reporting of mileage may cause the cancellation of a registrant’s operating privileges and result in additional taxes including penalty and interest assessments. Please remember, vehicles going out loaded and returning empty do not necessarily qualify for one-way haul status.

The Road-Use Tax is automatic for any vehicle base-licensed in New Mexico or registered under prorate or reciprocity. A registrant must apply for one-way haul status. Also, those subject to the weight-distance tax must file quarterly or annual mileage tax reports and post a bond. See above for additional bond and reporting requirements.

Trucks not registered in New Mexico, but registered in another state, will pay a cents-per-mile tax on the mileage traveled on New Mexico highways. The tax is paid at ports of entry and is based on gross weight of the vehicle.

Exemptions. School buses, buses operated by religious or non-profit charitable organizations and buses used exclusively for transporting agricultural laborers.

Penalties. A commercial motor carrier vehicle subject to and not in compliance with the weight distance tax requirements may be detained until the tax is paid.

Tax refunds or credits