SENATE BILL 244

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Stephen H. Fischmann

AN ACT

RELATING TO TAXATION; INCREASING THE RATE OF THE MOTOR VEHICLE EXCISE TAX; PHASING OUT THE OFFSET TAKEN AGAINST TRADED-IN VEHICLES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 7-14-4 NMSA 1978 (being Laws 1988, Chapter 73, Section 14) is amended to read:

     "7-14-4. DETERMINATION OF AMOUNT OF MOTOR VEHICLE EXCISE TAX.--

          A. The rate of the motor vehicle excise tax provided in Subsection B of this section is [three percent and is] applied to the price paid for the vehicle. If the price paid does not represent the value of the vehicle in the condition that existed at the time it was acquired, the tax rate shall be applied to the reasonable value of the vehicle in such condition at such time. [However]

          B. The rate of the motor vehicle excise tax is:

                (1) three percent of the first ten thousand dollars ($10,000) of the price paid for the vehicle; and

                (2) five percent of any amount in excess of ten thousand dollars ($10,000) paid for the vehicle.

          C. Allowances granted for vehicle trade-ins may be deducted from the price paid or the reasonable value of the vehicle purchased as follows:

                (1) for a vehicle purchased before July 1, 2011, one hundred percent of the lesser of the trade-in value or the actual trade-in price received for the vehicle being traded;

                (2) for a vehicle purchased on or after July 1, 2011 but before July 1, 2012, sixty-seven percent of the lesser of the trade-in value or the actual trade-in price received for the vehicle being traded;

                (3) for a vehicle purchased on or after July 1, 2012 but before July 1, 2013, thirty-three percent of the lesser of the trade-in value or the actual trade-in price received for the vehicle being traded; and

                (4) for a vehicle purchased on or after July 1, 2013, no allowance may be taken for a vehicle being traded in."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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