HB 120: LOCOMOTIVE FUEL GROSS RECEIPTS

An Act Relating To Taxation; Expanding The Deduction For Locomotive Fuel From Gross Receipts And From Compensating Tax.

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MILD HB 120
LOCOMOTIVE FUEL GROSS RECEIPTS

Legislative URL:

HB 120 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

Signed

Action:

[2] HTPWC/HTRC/HAFC-HTPWC [6] DP-HTRC [12] DP-HAFC [28] DP [30] PASSED/H (64-1) [21] SCORC/SFC-SCORC [32] DP-SFC [44] DP - PASSED/S (33-8) SGND (Apr.2) Ch.123.

Hearing:

Issue(s):

Transportation

Related Legislators

Bill Sponsor:

Patricia Lundstrom

Related Documents

Downloads:

Introduced
HTPWC Committee Report
HTRC Committee Report
HAFC Committee Report
Final House Vote
SCORC Committee Report
SFC Committee Report
Final Senate Vote
Fiscal Impact Report
Final Version

Summary

In 2011, New Mexico created a tax deduction that will take effect July 1, 2013. This bill amends that law. The 2011 law allows the cost of fuel used for locomotive engines to by deducted for gross receipts and compensating tax purposes by the common carrier. The purpose of the deduction is to “encourage the construction, renovation, maintenance and operation of railroad locomotive refueling facilities” and “related activities.” House Bill 120 replaces “related activities” with “other railroad capital investments in New Mexico.” The bill goes on to describe how a common carrier becomes eligible for the deduction with respect to capital investments and updates the language relating to record keeping and review requirements accordingly.

To be eligible for the compensating or gross receipts tax deduction under the bill, the common carrier must make a capital investment of $50,000,000 or more on or after July 1, 2012, for “new railroad infrastructure improvements, including railroad facilities, track, signals and supporting railroad network, located in New Mexico.” If the improvements were required by a regulatory agency to correct problems, the investment is not eligible for the deduction. For the gross receipts tax deduction, a non-taxable transaction certificate must also be presented to the seller.

The current standard for deduction does not change pursuant to the bill.

Outcome: HB 120 passed the House (64-1) and Senate (33-8), and was signed into law on April 2nd, 2013.

Date of Summary:  1/21/2013; Updated 5/16/13