[1] NOTE: As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Whitaker		DATE TYPED:	01/30/02		HB	106
SHORT TITLE:		Interest on Refunds on Gasoline Tax				SB
					ANALYST:		Neel

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

NFI

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC files

New Mexico State Highway Department (NMSHD)

Taxation and Revenue Department (TRD).

SUMMARY

According to NMSHD, there is no statutory time limit for processing of gasoline tax refund claims by off-highway users, and no allowance to pay interest on those refunds. HB 106 provides those refund claims must be processed within 75 days to avoid paying the claimant interest at a rate of 15% per year from the date of the refund claim

FISCAL IMPLICATIONS

According to TRD there is no significant fiscal impact because TRD is able to process refund requests within the 75-day window allowed under the bill.

OTHER SUBSTANTIVE ISSUES

According to the NMSHD the origin of this bill may be from problems and delays experienced in processing off-highway user refunds (aviation refunds) about a year ago. These delays were apparently due to a computer system problem that is not expected to recur according to TRD staff.

SN/ar