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New Mexico Locomotive Fuel Sales Tax Exemption


New Mexico passed HB 120, a bill that offers a gross receipts tax exemption on locomotive fuel for those that make capital investments in railroad infrastructure. 

To qualify for the exemption, a business must have made a capital investment in railroad infrastructure according to the following guidelines:

  • After July 1, 2011, made a capital investment of one hundred million dollars ($100,000,000) or more in new construction or renovations at the railroad locomotive refueling facility in which the fuel is sold; or
  • On or after July 1, 2012, made a capital investment of fifty million dollars ($50,000,000) or more in new railroad infrastructure improvements, including railroad facilities, track, signals and supporting railroad network, located in New Mexico; provided that the new railroad infrastructure improvements are not required by a regulatory agency to correct problems, such as regular or preventative HB 120 maintenance, specifically identified by that agency as requiring necessary corrective action.

How does your business handle sales tax exemptions?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.