New Mexico AHO Denies Motor Vehicle Excise Tax Refund for Recreational Vehicle Purchase

The New Mexico Administrative Hearings Office (OHA) granted summary judgment in favor of the New Mexico Taxation and Revenue Department, denying a taxpayer’s claim for a refund of Motor Vehicle Excise Taxes paid on a recreational vehicle purchase. The taxpayer asserted that the vehicle qualified for exemption under NMSA 1978, § 7-14-6(F), which provides an exemption for vehicles acquired for subsequent lease. The Hearing Officer held that the exemption applies only to persons who hold, lease, or sell vehicles in the ordinary course of business. Because the taxpayer and his law practice were not engaged in the vehicle leasing or ...