IPC (USA), Inc

18-06

On February 17, 2016, the Department denied the Taxpayer’s claim for refund for the tax periods starting January 1, 2012 through December 31, 2014. The Taxpayer filed a formal protest with the Department on May 20, 2016. The Taxpayer owned gasoline that was stored at a pipeline terminal in Moriarty, New Mexico and in Albuquerque, New Mexico. On July 30, 2015, the Department assessed the Taxpayer for failure to pay tax. The Taxpayer paid the assessment in full. At the time of the hearing, the Taxpayer claimed that it was entitled to a larger refund than originally requested based on its recalculation. The Taxpayer argues that the refund is due because the tax was paid twice. The Department argued that the protest is limited to the denial of the original claim for refund and that documentation was not provided showing the tax was paid twice on the same gasoline or proving that the gallons racked out of Moriarty terminal were actually delivered to the Albuquerque terminal. The Department also argued that the appropriate first instance of tax is when the gasoline is racked out of a pipeline terminal and that the statutes do not allow for the Taxpayer’s business practices of shipping gasoline by truck from one terminal to another within the state. Based on the information provided at the time of the hearing, the Hearing Officer determined that the Taxpayer did not overcome the presumption of correctness and even if the documentation to support the claim would have been provided, the Taxpayer would not be entitled to a refund based on statute. The Taxpayer’s protest is denied.