Chapter 6, Section E:|
Motor Vehicle Excise Tax -
Revised August 11, 2008
The Motor Vehicle Excise Tax Act
Because the Motor Vehicle Excise Tax
Act (Chapter 7, Article 14 NMSA 1978) is not included in your Traffic
Laws Manual, it is included her in its entirety.
7-14-1. Short title.
Chapter 7, Article 14 NMSA 1978 may be
cited as the "Motor Vehicle Excise Tax Act".
As used in the Motor Vehicle Excise Tax
Act [Chapter 7, Article 14 NMSA 1978]:
- "department" means the taxation
and revenue department, the secretary of taxation and revenue or an
employee of that department exercising authority lawfully delegated
to that employee by the secretary;
- "manufactured home" means a
structure that exceeds either a width of eight feet or a length of
thirty-two feet, when equipped for the road;
- "motor vehicle" means every
vehicle which is self-propelled and every vehicle which is propelled
by electric power obtained from batteries or from overhead trolley
wires but not operated upon rails;
- "person" means any individual,
estate, trust, receiver, cooperative association, club, corporation,
company, firm, partnership, joint venture or syndicate; "person"
also means, to the extent permitted by law, any federal, state or
other governmental unit or subdivision or an agency, department or
- "secretary" means the secretary of
taxation and revenue or the secretary's delegate;
- "tax" means the motor vehicle
excise tax imposed under the Motor Vehicle Excise Tax Act; and
- "vehicle" means every device in,
upon or by which any person or property is or may be transported or
drawn upon a highway, including any frame, chassis or body of any
vehicle or motor vehicle, except devices moved by human power or
used exclusively upon stationary rails or tracks.
7-14-3. Imposition of motor vehicle
An excise tax, subject to the credit
provided by Section 7-14-7.l, is imposed upon the sale in this state of
every vehicle, except as otherwise provided in Section 7-14-7.1 NMSA
1978 and manufactured homes, required under the Motor Vehicle Code
[66-1-1 NMSA 1978] to be registered in this state. To prevent evasion of
the excise tax imposed by the Motor Vehicle Excise Tax Act [Chapter 7,
Article 14 NMSA 1978] and the duty to collect it, it is presumed that
the issuance of every original and subsequent certificate of title for
vehicles of a type required to be registered under the provisions of the
Motor Vehicle Code constitutes a sale for tax purposes, unless
specifically exempted by the Motor Vehicle Excise Tax Act or unless
there is shown proof satisfactory to the department that the vehicle for
which the certificate of title is sought came into the possession of the
applicant as a voluntary transfer without consideration or as a transfer
by operation of law. The excise tax imposed by this section shall be
known as the "motor vehicle excise tax".
7-14-4. Determination of amount of
motor vehicle excise tax.
The rate of the motor vehicle excise
tax is three percent and is applied to the price paid for the vehicle.
If the price paid does not represent the value of the vehicle in the
condition that existed at the time it was acquired, the tax rate shall
be applied to the reasonable value of the vehicle in such condition at
such time. However, allowances granted for vehicle trade-ins may be
deducted from the price paid or the reasonable value of the vehicle
7-14-5. Time of payment of tax.
The tax shall be paid to the department
by the applicant for the certificate of title at the time of application
for issuance of the certificate.
7-14-6. Exemptions from tax.
- A person who acquires a vehicle
out of state thirty or more days before establishing a domicile in
this state is exempt from the tax if the vehicle was acquired for
- A person applying for a
certificate of title for a vehicle registered in another state is
exempt from the tax if the person has previously registered and
titled the vehicle in New Mexico and has owned the vehicle
continuously since that time.
- A vehicle with a certificate of
title owned by this state or any political subdivision is exempt
from the tax.
- A person is exempt from the tax if
the person has a disability at the time the person purchases a
vehicle and can prove to the motor vehicle division of the
department or its agent that modifications have been made to the
vehicle that are:
(1) due to that person's disability; and
(2) necessary to enable that person to drive that vehicle or be
transported in that vehicle.
- A person is exempt from the tax if
the person is a bona fide resident of New Mexico who served in the
armed forces of the United States and who suffered, while serving in
the armed forces or from a service-connected cause, the loss or
complete and total loss of use of:
(1) one or both legs at or above the ankle; or
(2) one or both arms at or above the wrist.
- A person who acquires a vehicle
for subsequent lease shall be exempt from the tax if:
(1) the person does not use the vehicle in any manner other than
holding it for lease or sale or leasing or selling it in the
ordinary course of business;
(2) the lease is for a term of more than six months;
(3) the receipts from the subsequent lease are subject to the gross
receipts tax; and
(4) the vehicle does not have a gross vehicle weight of over
twenty-six thousand pounds.
- From July 1, 2004 through June 30,
2009, vehicles that are gasoline-electric hybrid vehicles with a
United States environmental protection agency fuel economy rating of
at least twenty-seven and one-half miles per gallon are eligible for
a one-time exemption from the tax at the time of the issuance of the
original certificate of title for the vehicle.
7-14-7. Credit against tax.
If a vehicle has been acquired through
an out-of-state transaction upon which a gross receipts, sales,
compensating or similar tax was levied by another state or political
subdivision thereof, the amount of the tax paid may be credited against
the tax due this state on the same vehicle.
7-14-7.1. Credit; vehicles used for
short-term leasing; requirements; reports.
- Upon application of the owner, the
secretary shall suspend payment of the tax and issue a certificate
of title without payment of the tax for any vehicle the leasing of
which is subject to the Leased Vehicle Gross Receipts Tax Act
[Chapter 7, Article 14A NMSA 1978], if:
(1) the vehicle is acquired by the owner on or after July 1, 1991;
(2) the vehicle is required to be registered in this state;
(3) the owner presents proof satisfactory to the secretary that the
owner is registered with the department to pay the leased vehicle
gross receipts tax; and
(4) the owner declares that the vehicle for which issuance of a
certificate of title is being applied will be part of a vehicle
fleet of at least five vehicles, will be used primarily as a
short-term rental vehicle and that each period of rental or lease
will not exceed six months.
- If an owner has paid the motor
vehicle excise tax after July 1, 1991 with respect to a vehicle that
qualifies for suspension of the motor vehicle excise tax pursuant to
Subsection A of this section, the owner may apply for a refund of
the motor vehicle excise tax paid, but the application for refund
must be made within one year of the date certificate of title was
issued to the owner for the vehicle. If application is made after
that time, the claim for refund is not timely and the motor vehicle
excise tax paid shall not be refunded.
- On or before the twenty-fifth day
of the month following the close of the calendar year, the owner
shall submit to the department in a form prescribed by the secretary
a report indicating the total collections of leased vehicle gross
receipts tax collected in lieu of the tax. The report shall also
indicate the amount of tax that would have been paid in the state of
New Mexico for the preceding calendar year.
- If the total amount of leased
vehicle gross receipts tax is less than the amount of tax that would
have been collected, the owner shall pay the difference to the
department at the time of filing the report required by Subsection B
of this section.
- Once the total amount of leased
vehicle gross receipts tax credited with respect to a vehicle for
which payment of the motor vehicle excise tax is suspended pursuant
to Subsection A of this section equals or exceeds the amount of
motor vehicle excise tax due on that vehicle, or the owner has paid
the difference pursuant to Subsection D of this section, the
secretary shall cause the records of the department to indicate that
the motor vehicle excise tax due with respect to that vehicle is
paid in full and that payment is no longer suspended.
7-14-8. Imposition of penalty for
failure to make timely application.
A penalty of fifty percent of the tax
is imposed on any person who is:
- domiciled in this state and
accepts transfer in this state, but fails to apply for a certificate
of title within ninety days of the date on which ownership of the
vehicle was transferred to the person; or
- domiciled in this state but
accepts transfer outside this state and fails to apply for a
certificate of title within ninety days of the date on which the
vehicle is brought into this state.
7-14-9. Refunds; procedures.
- If any person believes that the
person has made payment of any motor vehicle excise tax in excess of
that for which the person was liable or has been denied any credit
against motor vehicle excise tax, that person may claim a refund by
directing to the secretary a claim for refund in accordance with the
provisions of Section 7-1-26 NMSA 1978.
- The department may authorize
refunds of the motor vehicle excise tax in accordance with the
provisions of Section 7-1-29 NMSA 1978.
- Any person upon whom a penalty is
imposed by the Motor Vehicle Excise Tax Act [this article] may
protest the imposition of the penalty in accordance with the
provisions of Sections 7-1-24 and 7-1-25 NMSA 1978.
- Any person whose claim for refund
of motor vehicle excise tax is denied in whole or in part may
protest the denial in accordance with the provisions of Sections
7-1-24 and 7-1-25 NMSA 1978.
7-14-9.2. Penalties for failure to
submit report or to pay; interest.
- Any person required to submit the
report required by Subsection C of Section 7-14-7.1 NMSA 1978 who
does not file the report in the manner and by the date required
shall pay a penalty in an amount equal to five percent of the total
amount of tax suspended pursuant to Subsection A of Section 7-14-7.1
NMSA 1978 for vehicles required to be included in the report.
- Any person required to pay any
amount pursuant to Subsection D of Section 7-14-7.1 NMSA 1978 who
fails to pay the amount by the date required is liable for penalty
in an amount equal to the greater of five dollars ($5.00) or two
percent per month or any fraction of a month from the date the
amount was due multiplied by the amount of tax due but not paid, not
to exceed a maximum of ten percent of the tax due but not paid.
- If any person required to pay any
amount pursuant to Subsection D of Section 7-14-7.1 NMSA 1978 fails
to pay the amount by the date required, interest shall be paid to
the state on such amount in accordance with the provisions of
Section 7-1-67 NMSA 1978.
7-14-10. Distribution of proceeds.
The receipts from the tax and any
associated interest and penalties shall be deposited in the "motor
vehicle suspense fund", hereby created in the state treasury. As of the
end of each month, the net receipts attributable to the tax and
associated penalties and interest shall be distributed to the general
7-14-11. Administration by
department; authority of department.
- The department has the authority
and duty to administer the Motor Vehicle Excise Tax Act [Chapter 7,
Article 14 NMSA 1978] and to impose, collect and enforce the motor
vehicle excise tax.
- The department has the authority
to interpret the provisions of the Motor Vehicle Excise Tax Act and
to promulgate regulations with respect to that act. The extent to
which regulations will have retroactive effect shall be stated and,
if no such statement is made, they will be applied prospectively