The Department denied the Taxpayer’s refund request of motor vehicle excise tax. The Taxpayer had claimed the refund because he believe he qualified for an exemption from the tax for a person who acquires a vehicle for subsequent lease pursuant to Section 7-14-6 (F)(1) NMSA 1978. The Taxpayer purchased the vehicle, and then transferred beneficial ownership of the vehicle to his business. His business subsequently leased the vehicle to a nonprofit organization. The Department believed that the Taxpayer did not qualify for the exemption because he did not hold the vehicle for lease or lease the vehicle in the ordinary course of business, as the statute requires. Taxpayer was not in the business of leasing or selling vehicles. The Taxpayer argued that the language of the statute could be read to mean that anyone who acquired a vehicle for the purpose of leasing it was exempt from motor vehicle excise tax. But the Hearing Officer did not agree, and cited canons of construction, statutes, and case law supporting that the ordinary course of business requirement applied to all of the preceding verbs in the statute. This having been decided, the protest was denied.
