New Mexico Hearing Office Finds Generators Not Motor Vehicle Excise Taxable Accessories

The New Mexico Administrative Hearing Office (AHO) granted the taxpayer’s protest involving a request for refund of motor vehicle excise tax paid on electric generators, used as a power source at oilfield drilling sites, that were mounted on trailers. The taxpayer argued it overpaid the motor vehicle excise tax for the entire value of the generators and the trailers, rather than just the value of the trailers. The Department argued the excise tax applied to the entire trailer including the generators. The issue was whether the generators were “accessories” which are defined to contribute to the “price paid” for the ...