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NM Taxation & Revenue Department
MVD New Mexico

Chapter 6 – Fees, Penalties and Excise Tax

by | Dec 29, 2020 | Vehicle Procedures Manual | 0 comments

01/14/2014
4:31 PM

Section A.  Fees 
Section B.  Military/National Guard/Law Enforcement Registration Fee and Tax Reductions/Exemptions?
Section C.  Penalties
Section D.  Motor Vehicle Excise Tax – Basics
Section E.  Motor Vehicle Excise Tax – Statute

 

Section A: Fees

Revised November 20, 2017

Fees Manual

Click here to open the new MVD Master Fees Manual in Excel PDF format.

Permanent Registration (§66-3-2A)The registration for freight trailers is permanent. Freight trailers will be registered once. At the time of resale, the new owner will be required to pay the registration fee in their own name. The license plate itself will have affixed to it by stamp or impression the word “PERM” and/or “PERMANENT.” The paper registration certificate for that plate and vehicle will reflect the term “permanent” in regards to expiration. Both the vehicle and Certificate of Registration will be permanent for the life of the vehicle. Utility trailers and travel trailers not used in commerce whose gross vehicle weight is under 6,001 lbs. may also be registered permanently. The permanent registration fee for a utility trailer is $25.00 for the first 500 pounds, plus $5.00 for each additional 100 pounds rounded. The fee for a travel trailer is computed by dividing the weight by 2, then assessing $25.00 for the first 500 pounds, plus $5.00 for each additional 100 pounds rounded. The registration fee for transfer of a permanently registered trailer is $5.

Section B: Military/National Guard/Law Enforcement Registration Fee and Tax Reductions/Exemptions

Revised December 1, 2017

Military Reductions/Exemptions:

Veterans Exemption (§66-6-7) (Registration Fee Reduction)

A New Mexico veteran who possesses a Certificate of Eligibility from the New Mexico Department of Veterans Services is entitled to a one-third (1/3) reduction of the registration fee for vehicles owned by the veteran. It is not a reduction of taxes, only registration fees. When allowing reduction, CSRs must verify that an exemption for real property taxes has not already been allowed, for the current year, upon the current certificate.

Veterans Exemption from Motor Vehicle Excise Tax (§7-14-6)

A person is exempt from the Motor Vehicle Excise 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.

 

Military Plates:

First Time Applications:

For the first time issuance of military plates applicants must complete form MVD10353 “Application for Military Service Special Plate.” Applicants must indicate the type of special plate for which they are applying and send the application, with a copy of form DD-214 Certificate of Release or Discharge from Active Duty, along with any other documentation supporting the request to the Vehicle Services Unit.

First time issuance of military plates can only be processed by the MVD Central Operations Vehicle Services Unit. There is no need to register a vehicle when you know that the customer is going to apply for a first time military plate. Instead, sell the customer a temporary registration through VRS; this enables the customer to operate the vehicle legally while waiting for issuance of the military plate.

Transfer of Military Plates:

Military plates can be transferred by any motor vehicle office including state, municipal, and partner run offices. The military plate being transferred must be currently registered to a vehicle in the applicant’s name. When transferring a military plate from one vehicle to another, the system will apply any credit for unused second year of registration and determine what registration fees are due. Proper documentation must be submitted and scanned if not already in the system. Agent should check customer account to verify if DD 214 or other required documentation has already been submitted on another vehicle transaction before providing customer with an additional documents letter. Transfers cannot be made without verification of proper documentation and fees.

Please refer to Chapter 7 – Section A for specific military plate requirements.

Qualifying military personnel and veterans are entitled to the plates below on up to any two vehicles (passenger vehicles, trucks, recreational vehicles or motorcycles if allowed by statute) with submittal of proper documentation. No fees shall be collected for the issuance of these plates.

  1. Medal of Honor (§66-3-409)
  2. Prisoner Of War/Surviving Spouse (POW) (§66-3-411)
  3. 50% Disabled Veteran (DV) (§66-3-412)
  4. 50% Disabled Veteran with Limited Mobility (DV) (§§ 66-3-412 and 66-3-16)
    (Must meet mobility limitation requirements of (§66-3-16(J))?
  5. Purple Heart (§66-3-414)
    (Recipients of multiple Purple Heart Medals qualify for additional Purple Heart plates.)

Qualifying military personnel and veterans are entitled to the plate below on one vehicle (passenger vehicle, truck or recreational vehicle only) with submittal of proper documentation. ?No fee other than the registration fee applicable to the passenger motor vehicle, if any, shall be collected for the issuance of these plates.

  1. Pearl Harbor Survivor (§66-3-415)?

National Guard Plates:

National Guard plates may be issued to any person who is a current, active member of the New Mexico National Guard for up to two vehicles. Applicants must complete form MVD10247 “Application for National Guard Plate” signed by an authorized representative and mail to the Vehicle Services Unit.

National Guard special plates can only be issued by the MVD Central Operations Vehicle Services Unit. There is no need to register a vehicle when you know that the customer is going to apply for or transfer a National Guard special plate.  Instead, sell the customer a temporary registration through VRS; this enables the customer to operate the vehicle legally while waiting for issuance or transfer of the National Guard plate.

No fee shall be collected for issuance of these plates.

  1. National Guard (§66-3-413)

Law Enforcement Plates:

The division shall issue a special registration plate for one vehicle to any person who is a New Mexico ranger, upon the submission by the person of proof satisfactory to the division that he is currently a New Mexico ranger. No fee shall be collected for issuance of these plates.

  1. New Mexico Ranger (§66-3-421)

The division shall issue a special registration plate for one vehicle to any person who is a member of the New Mexico mounted patrol, upon the submission by the person of proof satisfactory to the division that he is currently a member of the New Mexico mounted patrol. No fee shall be collected for issuance of these plates.

  1. Mounted Patrol (§66-3-421)

 

Section C:  Penalties

Revised November 20, 2017

1. Late Transfer Penalty (code 70) (§66-3-103(B))

A $20.00 late transfer fee applies if Application for Title is not made within 30 calendar days from the date of transfer. The penalty also applies when transferring out-of-state titles or MCO’s.

If the applicant has made an effort to transfer the vehicle within the given time frame and has in their possession form MVD-10282, Notice of Additional Requirements for Completion of Vehicle Transactions, the penalty may be waived, if the form is 10 days old or less, or at the Manager’s discretion. The applicant cannot provide an updated bill of sale to avoid the penalty. The date of the original bill of sale shall be the determining factor in assessing the penalty.

2. Late Registration Penalty (Code 52) (§66-3-19(E))

  • $10.00 fee assessed when vehicle is operated or transported after the expiration of the vehicle registration.
  • 75% of the vehicle registration or $10.00, whichever is greater, if more than thirty days have lapsed.

3. Bad Check Penalty (§§ 66-8-141 and 66-5-33.1)

When a vehicle owner pays any fee by check and the check is dishonored, and as a result the vehicle’s registration or title is suspended or revoked, the owner will be required to pay:?

  • the original fees assessed (transaction amount), for which the check was returned, and;
  • $20.00 returned check fee; and
  • $30.00 reinstatement fee.

Note: When performing a title and registration transaction in one interaction, and the payment is returned NSF, the reinstatement fee will be applicable to the registration only.

4. Bad Check Penalty: Fleet Vehicles (§66-8-141)

Fleet registrations may be paid with a singular check for multiple vehicles or all vehicles within a Fleet. If a check is returned NSF for a Fleet transaction, only one returned check fee and reinstatement fee will be charged to reinstate all vehicles involved in the original interaction.

5. Incorrect Fees Collected (§§ 66-8-4 and 66-5-33.1)

When the division determines that required fee(s) have not been paid and the same are not paid upon reasonable notification and demand, the New Mexico vehicle registration will be suspended.

  • Original fees assessed (transaction amount), for which an incorrect or incomplete fee(s) was collected; and
  • $30.00 reinstatement fee.

A vehicle owner whose registration is under Administrative Suspension must make payment, in full, prior to being eligible for registration reinstatement. Operation of vehicles under Administrative Suspension can lead to further citations and penalties up to and including confiscation of the license plate and/or vehicle.

1. Late Transfer Penalty (code 70) 66-3-103

A $20.00 late transfer fee applies if Application for Title is made after 30 calendar days from the date of purchase. The penalty also applies when transferring out-of-state titles or MCO’s.

If the applicant has made an effort to transfer the vehicle within the given time frame and has in their possession MVD Form 10282 “Notice of Additional Requirements for Completion of Vehicle Transactions”, the penalty may be waived, if the form is 10 days old or less, or at the Manager’s discretion. The applicant cannot provide an updated bill of sale to avoid the penalty. The date of the original bill of sale shall be the determining factor in assessing the penalty.

2. Late Registration Penalty (Code 52)

  • $10.00 fee assessed when vehicle is operated or transported after the expiration of the vehicle registration.
  • 75% of the vehicle registration or $10.00, whichever is greater, if more than thirty days have lapsed.

3. Bad Check Penalty (66-8-141 NMSA 1995)

  • Original fees assessed (transaction amount), for which the check was returned „NSF? (Non-Sufficient Funds), and;
  • $20.00 returned check fee, and;
  • $30.00 reinstatement fee.

Note: When performing a title and registration transaction in one interaction, and the payment is returned „NSF?, the reinstatement fee will be applicable to the registration only.

4. Bad Check Penalty: Fleet Vehicles (66-8-141 NMSA 1995)

Fleet registrations may be paid with a singular check for multiple vehicles or all vehicles within a Fleet. If a check is returned ‘NSF’ for a Fleet transaction, only one returned check fee and reinstatement fee will be charged to reinstate all vehicles involved in the original interaction.

5. Incorrect Fees Collected (66-8-4 NMSA 1978)

When the division determines that required fee(s) have not been paid and the same are not paid upon reasonable notification and demand, the New Mexico vehicle registration will be suspended.

  • Original fees assessed (transaction amount), for which an incorrect or incomplete fee(s) was collected, and;
  • $30.00 reinstatement fee.

A vehicle owner whose registration is under Administrative Suspension must make payment, in full, prior to being eligible for registration reinstatement. Operation of vehicles under Administrative Suspension can lead to further citations and penalties up to and including confiscation of the license plate and/or vehicle.

 

Section D: Motor Vehicle Excise Tax – Basics

Revised July 1, 2019

Because the Motor Vehicle Excise Tax Act (Chapter 7, Article 14 NMSA 1978) is not included in your Traffic Laws Manual, it is included in its entirety in Section E of this chapter.
Here are the basics:

When is the Motor Vehicle Excise Tax imposed and paid?

(§7-14-3) The Motor Vehicle Excise Tax (MVET) is imposed, with specific exceptions, “upon the sale in this state of every vehicle … required under the Motor Vehicle Code … to be registered in this state.”

Note: Because all-terrain vehicles (ATVs) are subject to the registration and titling provisions of the Motor Vehicle Code, the MVET is imposed on the sale of ATVs (3.11.4.16 NMAC). Boats, because they are not vehicles, are not subject to the MVET, but are subject to a separate 5% boat excise tax (§66-12-6.1).

(§7-14-5) The tax is paid at the time of application for a certificate of title.

Amount of tax based on price paid

(§7-14-4) The MVET rate is four percent (4%) and is applied to the price paid for the vehicle. The value of any vehicle traded in on the purchase of another vehicle may be deducted (3.11.4.13 NMAC).

Note: Effective July 1, 2019, the MVET increased from 3% to 4%. The purchase date of the vehicle should be used to determine the accurate MVET rate: vehicles purchased before July 1, 2019 are assessed 3%; vehicles purchased on July 1, 2019 and later are assessed at 4%.

Effective February 13, 2009, and as described in PQU#86, the “price paid” for a vehicle for the purpose of calculating the MVET is now defined in rule (3.11.4.7D NMAC) as below:

“Price paid” defined

“Price paid” is defined in rule (3.11.4.7D NMAC) as is the dollar amount to which the motor vehicle excise tax is applied and (except as provided in §7-14-4 if the price paid does not represent the value of the vehicle) is the total net purchase price paid by the buyer for the vehicle itself, including any deposit or down payment, at the time of sale.

“Price paid” includes any charges to the buyer for accessories, transportation, delivery and dealer preparation. “Price paid” is reduced by the value of any vehicle trade-in and by any discounts or rebates that are applied to the buyer’s balance due at time of sale.

“Price paid” is also reduced by the value of any manufacturer’s or other rebate that is contractually guaranteed to the buyer at time of sale, even though the rebate is received by the buyer at a later date.

Add-on transfer service and insurance fees not included in “price paid”

By contrast a dealer transfer service fee, for document preparation and processing, is an add-on service that is clearly not part of the price paid for the vehicle itself. It is rather an additional service provided after the sale. As such it is a service subject to gross receipts tax (GRT) and should not be included in calculating the MVET.

Similarly, if a dealer sells vehicle insurance and charges an insurance premium at time of sale, such a premium could not be considered part of the price paid for the vehicle itself and should not be included in the MVET calculation.

Value exception to price paid as basis for MVET

By rule (3.11.4.14 NMAC), the price paid for a used vehicle cannot be relied upon to indicate the reasonable value of the vehicle. Instead, the rule provides for a presumption that the value of the vehicle transferred is no less than the average trade-in (wholesale) value for the make, model and year of the vehicle as reported by the National Automobile Dealers Association (N.A.D.A.).

Accordingly, the value used to calculate the Motor Vehicle Excise Tax on the sale of a used motor vehicle shall be the higher of the declared purchase price or 80% of the N.A.D.A. average trade-in or wholesale value of the vehicle.

On each title transaction, when a used motor vehicle has been sold and is being titled, the MVD agent is directed to use the N.A.D.A. web site (linked from the MVD intranet home page) to ascertain the N.A.D.A. average trade-in/wholesale value for the vehicle, based on the vehicle’s actual mileage (if available) but without considering vehicle options.

For used cars and trucks, all you need to enter is the VIN and the actual mileage (if available). Calculate 80% of the resulting average trade-in value. The resulting value, if it is higher than the sale price stated in documents presented by the customer, must be used in calculating the Motor Vehicle Excise Tax.

There are four limited exceptions:

  1. If the sale is by a licensed dealer, and a dealer invoice is presented, we will accept the price paid that is indicated on the invoice, as we would for a new car sale.
  2. If a NADA value cannot be found online for the specific vehicle in question we will accept the stated price from the title or bill of sale.
  3. If the vehicle’s title has a salvage brand, we will accept the stated price from the title or bill of sale.
  4. If the N.A.D.A. web site gives a “rough trade-in” value and a “clean trade-in” value, but no “average trade-in” (as is the case for motorcycles) use a value that is 80% of the lower, rough trade-in value.

Note: It is not up to field office personnel to determine or negotiate the actual value of a vehicle. The customer may rebut the presumption by presenting evidence sufficient to establish a lower value. But merely confirming the price paid is not evidence of reasonable value. If the customer wishes to prove that the actual value of the vehicle is lower than the N.A.D.A. value applied, he may do so by submitting a Request for Refund (MVD-10208), together with sufficient documentation (typically in the form of an auto body shop estimate of repairs needed or a formal statement of value from a licensed dealer or other professional appraiser).

Affidavit of Gift required for transfer of a vehicle by gift

If a vehicle is legitimately transferred by gift, there is no sale, and no excise tax is due. Substantial Motor Vehicle Excise Tax revenues are lost when vehicle sales are mischaracterized as gifts to avoid payment of any excise tax when the vehicle is titled.

3.11.4.15 NMAC provides that, “To establish that a voluntary transfer without consideration has occurred, the department may require the parties to complete affidavits under penalty of perjury that a voluntary transfer without consideration has occurred and to submit such other evidence as is appropriate under the circumstances of the transfer.”

Accordingly, any applicant for a vehicle who claims that the vehicle was received by gift shall be required to submit a notarized Affidavit of Gift of Motor Vehicle or Boat (MVD-10018), signed by both parties (donor and recipient) who affirm under oath and under penalty of perjury that the vehicle was in fact transferred as a gift. Both signatures must be notarized.

In the absence of the affidavit, the transfer is to be treated as a sale and the actual sale price or the reasonable value of the vehicle or boat (whichever is higher) at the time of sale is to be applied to determine the excise tax due.

Tax penalty for late titling (§7-14-8)

A penalty of 50% of the MVET is imposed on any person who lives in New Mexico and either a) accepts transfer of a vehicle in New Mexico but fails to apply for a certificate of title within 90 days; or b) accepts transfer outside the state and fails to apply for a certificate of title within 90 days of bringing the vehicle into New Mexico.

The 50% add-on penalty has the effect of increasing the tax rate to 6% (50% of 4 =2 therefore 4% + 2% = 6%).

Note: Effective July 1, 2019, the MVET increased from 3% to 4% and the penalty should be applied to the appropriate tax rate. The purchase date of the vehicle should be used to determine the accurate MVET rate on which the penalty is assessed: vehicles purchased before July 1, 2019 are assessed 3% MVET; vehicles purchased on July 1, 2019 and later are assessed at 4% MVET.

Statutory exemptions from the MVET (§7-14-6)

The following are exempt from payment of the Motor Vehicle Excise Tax:

  1. A person who acquires a vehicle out of state, and for personal use, at least 30 days before moving to New Mexico.
  2. A person applying for New Mexico title on a vehicle registered in another state, if the person has previously registered and titled the vehicle in New Mexico and has continued to own the vehicle.
  3. The state of New Mexico and any political subdivision of the state.
  4.  A person who has a disability at the time the person purchases a vehicle and can prove that modifications have been made to the vehicle that 1) are due to the person’s disability; and 2) are necessary to enable the person to drive or be transported in the vehicle.
  5. A New Mexico resident who served in the armed forces of the United States and who suffered, while serving or from a service-connected cause, 1) the loss or complete and total loss of use of one or both legs at or above the ankle; or 2) one or both arms at or above the wrist.
  6.  A person who acquires a vehicle for subsequent lease if: 1) the vehicle is not used other than for lease or sale in the ordinary course of business; 2) the lease is for 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 GVW of over 26,000 pounds.
Exemptions by Rule – U.S. and NATO (3.11.4.9-11 NMAC)
  • Because issuance of a certificate of title is not required for vehicles sold to the United States, the motor vehicle excise tax does not apply to such vehicles. (3.11.4.9 NMAC)
  • Because issuance of a certificate of title is not required with respect to vehicles sold or transferred to a NATO force, the motor vehicle excise tax does not apply to such vehicles. A “NATO force” is any NATO signatory’s military unit or force or civilian component thereof present in New Mexico in accordance with the North Atlantic Treaty. (3.11.4.10 NMAC)
  • Also exempt, by operation of the provisions of the North Atlantic Treaty, is the sale or transfer of a vehicle to a member of a NATO force, including the military and civilian personnel of the NATO force and their dependents. (3.11.4.11 NMAC)

 

Section E: Motor Vehicle Excise Tax – Statute

Revised November 20, 2017

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”.

7-14-2. Definitions.

As used in the Motor Vehicle Excise Tax Act [Chapter 7, Article 14 NMSA 1978]:

  1. “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;
  2. “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;
  3. “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;
  4. “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 instrumentality thereof;
  5. “secretary” means the secretary of taxation and revenue or the secretary’s delegate;
  6. “tax” means the motor vehicle excise tax imposed under the Motor Vehicle Excise Tax Act; and
  7. “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 excise tax.

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 purchased.

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.

  1. 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 personal use.
  2. 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.
  3. A vehicle with a certificate of title owned by this state or any political subdivision is exempt from the tax.
  4. 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.
  5. 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.
  6. 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.
  7. 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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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:

  1. 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
  2. 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.

  1. 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.
  2. The department may authorize refunds of the motor vehicle excise tax in accordance with the provisions of Section 7-1-29 NMSA 1978.

7-14-9.1. Protests.

  1. 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.
  2. 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.

  1. 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.
  2. 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.
  3. 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 fund.

7-14-11. Administration by department; authority of department.

  1. 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.
  2. 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 only.
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