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| SPONSOR: | Silva | DATE TYPED: | 02/11/00 | HB | 430/aHTC | ||
| SHORT TITLE: | Fuel Tax Revenue for Highway Projects | SB | |||||
| ANALYST: | Williams | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| $ 96.0 | $ 54.0 | $ 33.0 | Recurring | State Road Fund |
| $ 2.0 | $ (1.0) | $ (1.0) | Recurring | State Aviation Fund |
| $ 1.0 | $ 4.0 | $ 0.0 | Recurring | Motorboat Fuel Fund |
| $ 14.0 | $ 7.0 | $ 7.0 | Recurring | Municipalities/County Road Funds |
| $ 6.0 | $ 7.0 | $ 3.0 | Recurring | Municipal Road Funds |
| $ 6.0 | $ 7.0 | $ 3.0 | Recurring | County Road Funds |
| $ 3.0 | $ 2.0 | $ (3.0) | Recurring | Municipal Arterial Program |
| $ 1.0 | $ 2.0 | $ 4.0 | Recurring | Local Governments Road Fund |
| $ 27,865.0 | $ 55,139.0 | $ 75,995.0 | Recurring | Highway Infrastructure Fund |
| $ 27,994.0 | $ 55,221.0 | $ 76,040.0 | Recurring | TOTAL |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
Legislative Finance Committee (LFC) files
State Highway and Transportation Department (SHTD)
New Mexico Finance Authority (NMFA)
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of HTC Amendment
This amendment corrects a misspecified date in Section 10, the distribution to the Highway Infrastructure Fund. The amendment does not affect the original bill analysis and fiscal impact report.
Synopsis of Bill
The bill would create the highway infrastructure fund and authorizes gasoline tax receipts and special excise fuel tax receipts to be deposited in certain increments over time. Other recipients of fuel tax revenue are held at current levels.
The bill increases the gasoline and special fuel excise tax by $0.01 per gallon every 6 months beginning in July 2000 through July 2002. The current gasoline tax would increase from $0.17 to $0.22 per gallon. The special fuel excise tax would increase from $0.18 to $0.23 per gallon.
The petroleum products loading fee would be established at $150 per load ($0.1875 per gallon) over a three year period, rather than the current variable rate depending on balances in the corrective action fund. The bill also provides a distribution of $70 per load from the net receipts of the petroleum products loading fee to be deposited into the highway infrastructure fund.
The revenues of the highway infrastructure fund may be pledged to repay bonds issued by the State Highway Commission and can be used for right-of-way acquisition, planning, design, engineering, construction or improvement of state highway projects previously authorized and for the new projects in specific amounts listed in the bill. Any balance after projects are implemented remains in the fund.
The bill also raises limits on the aggregate principal amount of bonds that may be issued for state highway projects.
Effective date of the bill is July 1, 2000.
Significant Issues
In its original analysis, NMFA notes concerns about potential decreases in municipal and county gasoline tax revenues. The TRD analysis indicates very small changes to local government funding due to the legislation. At least one NMFA loan is pledged in a rated NMFA bond issue.
FISCAL IMPLICATIONS
See the revenue table on page 1 of this analysis, which reflects FY01, FY02 and subsequent years. There is no fiscal impact in FY00.
The attached diagram illustrates the current distribution of FY00 road user revenues.
ADMINISTRATIVE IMPLICATIONS
A significant impact on taxpayers and state government is anticipated by TRD. The proposed changes can be accomplished with existing personnel and budget resources; however, "service levels could be expected to be somewhat degraded at certain periods due to the extra administrative burden."
AW/gm
Attachment