SENATE BILL 247
50th legislature - STATE OF NEW MEXICO - second session, 2012
INTRODUCED BY
George K. Munoz
AN ACT
RELATING TO HEAVY RAIL MASS TRANSIT; PROVIDING FOR AN EXCISE TAX TO FUND HEAVY RAIL MASS TRANSIT SYSTEMS; CREATING THE HEAVY RAIL MASS TRANSIT FUND; PROVIDING FOR USE OF THE HEAVY RAIL MASS TRANSIT FUND; AUTHORIZING JOINT POWERS AGREEMENTS; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 4 of this act may be cited as the "Heavy Rail Mass Transit Excise Tax Act".
SECTION 2. [NEW MATERIAL] PURPOSE.--The purpose of the Heavy Rail Mass Transit Excise Tax Act is to provide a dedicated funding source for the operation and maintenance costs of heavy rail mass transit systems that fairly imposes these costs on the locales and persons that are primarily served by the operation of heavy rail mass transit systems.
SECTION 3. [NEW MATERIAL] DEFINITIONS.--As used in the Heavy Rail Mass Transit Excise Tax Act:
A. "county served by" means a county in which a portion of a heavy rail mass transit system operates and in which its residents use the heavy rail mass transit system on a regular basis;
B. "heavy rail mass transit system" means an intercity passenger railway, for which the state is in whole or part financially responsible, with the capacity to handle heavy volumes of traffic and that operates over a dedicated or partially dedicated track on a right of way that is separated from foot traffic or other vehicular traffic and that follows gentle grades and curves; and
C. "operation and maintenance costs" means the costs incurred in all reasonable and necessary activity involved in operating and maintaining a heavy rail mass transit system, including activity related to service delivery, signaling, scheduling, track, right of way, rolling stock and locomotives, and scheduled and unscheduled reasonable and necessary repair, care and upkeep of a heavy rail mass transit system.
SECTION 4. [NEW MATERIAL] IMPOSITION AND RATE OF TAX--DENOMINATION AS "HEAVY RAIL MASS TRANSIT EXCISE TAX".--
A. For the privilege and benefit of being served by a state-financed heavy rail mass transit system, a countywide excise tax is imposed on any person engaging in business in a county served by a heavy rail mass transit system. The tax shall be set and adjusted for each affected county annually by the taxation and revenue department in one-sixteenth percent increments by multiplying the total unfunded operation and maintenance costs of the heavy rail mass transit system for the previous twelve-month period by a fraction, the numerator of which is the population in the county and the denominator of which is the total population served by the entire heavy rail mass transit system serving that county, and dividing the product of that calculation by the previous twelve-month period taxable gross receipts for that county to determine the appropriate excise tax rate for the next year. In no case shall the heavy rail mass transit excise tax rate in a county in any year be higher than one-fourth percent.
B. The tax imposed by this section shall be referred to as the "heavy rail mass transit excise tax".
C. Annually, on a date set by the taxation and revenue department, the secretary of transportation shall certify to the taxation and revenue department those counties that are served by a heavy rail mass transit system and the total unfunded operation and maintenance costs of each heavy rail mass transit system in this state.
SECTION 5. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--HEAVY RAIL MASS TRANSIT EXCISE TAX.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the heavy rail mass transit fund in an amount equal to the net receipts attributable to the taxes, surcharges, penalties and interest imposed pursuant to the Heavy Rail Mass Transit Excise Tax Act."
SECTION 6. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read:
"[NEW MATERIAL] HEAVY RAIL MASS TRANSIT FUND CREATED--USE.--
A. The "heavy rail mass transit fund" is created as a nonreverting fund in the state treasury. The fund consists of money from taxes distributed to the fund and earnings on investment of the fund. Except as provided in Subsections B and C of this section, money in the fund shall not be transferred to any other fund. The department shall administer the fund, and money in the fund is appropriated to the department for expenditures as provided in this section. Disbursements from the fund shall be by warrant of the secretary of finance and administration on vouchers signed by the secretary of transportation or the secretary's authorized representative.
B. The department shall use money in the heavy rail mass transit fund to pay unfunded operation and maintenance costs of a heavy rail mass transit system as they come due to the extent money in the fund is available to pay those costs. When two or more heavy rail mass transit systems have unfunded operation and maintenance costs but there is insufficient money in the fund to pay all the costs, the department shall apportion payments based on each system's share of the aggregate operation and maintenance costs for all systems for the time period being considered. At the end of each fiscal year, if there is money remaining in the fund after all due operation and maintenance costs have been paid, the department shall use the remaining amount for payment of debt service on any outstanding bonds that may have been issued by or on behalf of the department or the commission to create or build the heavy rail mass transit system.
C. If operation and maintenance costs of a heavy rail mass transit system are the responsibility of a public agency, as defined in the Joint Powers Agreements Act, other than the department, the department may enter into a joint powers agreement pursuant to that act to contribute money from the heavy rail mass transit fund to that public agency to pay or help defray those costs.
D. As used in this section:
(1) "heavy rail mass transit system" means an intercity passenger railway, for which the state is in whole or part financially responsible, with the capacity to handle heavy volumes of traffic and that operates over a dedicated or partially dedicated track on a right of way that is separated from foot traffic or other vehicular traffic and that follows gentle grades and curves; and
(2) "operation and maintenance costs" means the costs incurred in all reasonable and necessary activity involved in operating and maintaining a heavy rail mass transit system, including activity related to service delivery, signaling, scheduling, track, right of way, rolling stock and locomotives, and scheduled and unscheduled reasonable and necessary repair, care and upkeep of a heavy rail mass transit system."
SECTION 7. APPLICABILITY.--The distributions pursuant to Section 5 of this act apply to receipts from the heavy rail mass transit excise tax that are attributable to gross receipts received on and after July 1, 2012.
SECTION 8. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.
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