N.M. Code R. § 3.16.3.10 – Preemption of Tax by Federal Law

A. Gasoline received by an Indian tribe on its own territory is not subject to the taxes imposed by the Gasoline Tax Act if taxation of the gasoline received is prohibited by federal law.
B. On or after July 1, 1999, an Indian tribe that is a distributor receives gasoline on its own territory when:
(1) the Indian tribe imports gasoline into New Mexico directly onto the tribe’s territory without crossing any intervening ground in New Mexico that is not its own tribal territory;
(2) the Indian tribe blends on its own tribal territory a substance other than gasoline to produce gasoline; or
(3) the gasoline is loaded into the Indian tribe’s tank trucks or other transportation equipment at a rack located on its own tribal territory.
C. If an Indian tribe is a distributor and it receives gasoline at any place in New Mexico other than on the tribe's territory, imposition of the tax is not barred by federal law and the Indian tribe must report and pay gasoline tax. Example: Z is a member of an Indian tribe T and is registered as a distributor. Z hires tank trucks to pick up loads of gasoline at a rack which is not on T's territory. Z receives the gasoline at that rack. Z owes gasoline tax on the gasoline received.
D. Like any other distributor, an Indian tribe that is a registered distributor cannot receive gasoline previously received by another distributor.
[8/31/96, 9/30/99; 3.16.3.10 NMAC - Rn, 3 NMAC 16.3.10, 6/14/01]