The Taxpayer is a trucking company that transports cargo, including landscaping goods and agricultural commodities. On December 31, 2008, the Department sent notice to the Taxpayer that the Department had selected the Taxpayer for audit of Weight Distance Tax for reporting periods January 1, 2006 through December 31, 2008. The notice informed the Taxpayer of the necessary documentation needed for the audit. The Department informed the Taxpayer on January 8, 2009, that the audit would be done on a sample bases, relying on three reporting periods across the audit period. The Department found that the Taxpayer did not have all of the necessary records needed, and maintained only records of invoices showing delivery locations and fuel receipts. During the audit, the Department found that the Taxpayer’s records were insufficient to substantiate its claim as a one-way hauler entitled to a reduced Weight Distance Tax rate. Based on the audit, the Department assessed the Taxpayer for Weight Distance Tax, penalty and interest on December 29, 2009, as well as International Fuel Tax, penalty and interest on December 20, 2009. The Taxpayer initially protested both assessments, but withdrew the protest to the International Fuel Tax during the hearing. The Hearing Officer found that the Taxpayer did not possess the requisite records under Regulation 188.8.131.52 NMAC to establish that it was entitled to the reduced one-way hauler rate, not did it establish which, if any, of its vehicles traveled 45% of its total mileage empty of all load, as required to claim that reduced rate. The Taxpayer’s protest was denied.