SENATE JUDICIARY COMMITTEE SUBSTITUTE FOR
SENATE BILL 358
50th legislature - STATE OF NEW MEXICO - second session, 2012
AN ACT
RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; INCREASING THE GASOLINE TAX AND SPECIAL FUEL EXCISE TAX FOR A PERIOD OF FIVE YEARS; DISTRIBUTING THE INCREMENTAL INCREASE IN THE GASOLINE AND SPECIAL FUEL EXCISE TAXES TO THE HIGHWAY DISTRICT PROJECT FUND; CHANGING DISTRIBUTION AMOUNTS; CREATING THE HIGHWAY DISTRICT PROJECT FUND; PROVIDING FOR THE EQUAL EXPENDITURE OF HIGHWAY DISTRICT PROJECT FUND RECEIPTS BY HIGHWAY CONSTRUCTION DISTRICTS FOR HIGHWAY PROJECTS; PROHIBITING THE PLEDGE OF HIGHWAY DISTRICT PROJECT FUND RECEIPTS TO RETIRE DEBT; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994, Chapter 5, Section 2, as amended by Laws 2007, Chapter 297, Section 1 and by Laws 2007, Chapter 298, Section 1) is amended to read:
"7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to four and seventy-nine hundredths percent of the taxable gross receipts attributable to the sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to twenty-six hundredths percent of gasoline taxes, exclusive of penalties and interest, collected pursuant to the Gasoline Tax Act, except that from July 1, 2012 through the collection of taxes for June 2017, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to twenty-one hundredths percent of gasoline taxes, exclusive of penalties and interest, collected pursuant to the Gasoline Tax Act.
C. From July 1, 2002 through June 30, 2012, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to forty-six thousandths percent of the net receipts attributable to the gross receipts tax distributable to the general fund.
D. A distribution pursuant to Section 7-1-6.1 NMSA
1978 shall be made to the state aviation fund from the net
receipts attributable to the gross receipts tax distributable
to the general fund in an amount equal to:
(1) eighty thousand dollars ($80,000) monthly from July 1, 2007 through June 30, 2008;
(2) one hundred sixty-seven thousand dollars
($167,000) monthly from July 1, 2008 through June 30, 2009; and
(3) two hundred fifty thousand dollars
($250,000) monthly after July 1, 2009."
SECTION 2. Section 7-1-6.8 NMSA 1978 (being Laws 1983, Chapter 211, Section 13, as amended) is amended to read:
"7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the motorboat fuel tax fund in an amount equal to thirteen hundredths [of one] percent of the net receipts attributable to the gasoline tax, except that from July 1, 2012 through the collection of taxes for June 2017, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the motorboat fuel tax fund in an amount equal to eleven hundredths percent of the net receipts attributable to the gasoline tax."
SECTION 3. Section 7-1-6.9 NMSA 1978 (being Laws 1991, Chapter 9, Section 11, as amended) is amended to read:
"7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES AND COUNTIES.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made in an amount equal to ten and thirty-eight hundredths percent of the net receipts attributable to the taxes, exclusive of penalties and interest, imposed by the Gasoline Tax Act, except that from July 1, 2012 through the collection of taxes for June 2017, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made in an amount equal to eight and four-tenths percent of the net receipts attributable to the taxes, exclusive of penalties and interest, imposed by the Gasoline Tax Act.
B. [Except as provided in Subsection D of this section] The amount determined in Subsection A of this section shall be distributed as follows:
(1) ninety percent of the amount shall be paid to the treasurers of municipalities and H class counties in the proportion that the taxable motor fuel sales in each of the municipalities and H class counties bears to the aggregate taxable motor fuel sales in all of these municipalities and H class counties; and
(2) ten percent of the amount shall be paid to the treasurers of the counties, including H class counties, in the proportion that the taxable motor fuel sales outside of incorporated municipalities in each of the counties bears to the aggregate taxable motor fuel sales outside of incorporated municipalities in all of the counties.
C. Except as provided in Subsection D of this section, this distribution shall be paid into a separate road fund in the municipal treasury or county road fund for expenditure only for construction, reconstruction, resurfacing or other improvement or maintenance of public roads, streets, alleys or bridges, including right-of-way and materials acquisition. Money distributed pursuant to this section may be used by a municipality or county to provide matching funds for projects subject to cooperative agreements entered into with the [state highway and] department of transportation [department] pursuant to Section 67-3-28 NMSA 1978. Any municipality or H class county that has created or that creates a "street improvement fund" to which gasoline tax revenues or distributions are irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that has pledged all or a portion of gasoline tax revenues or distributions to the payment of bonds shall receive its proportion of the distribution of revenues under this section impressed with and subject to these pledges.
D. This distribution may be paid into a separate road fund or the general fund of the municipality or county if the municipality has a population less than three thousand or the county has a population less than four thousand."
SECTION 4. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter 211, Section 15, as amended) is amended to read:
"7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, surcharges, penalties and interest imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes, fees, penalties and interest imposed pursuant to the Special Fuels Supplier Tax Act and the Alternative Fuel Tax Act less:
(1) the amount distributed to the state aviation fund pursuant to Subsection B of Section 7-1-6.7 NMSA 1978;
(2) the amount distributed to the motorboat fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;
(3) the amount distributed to municipalities and counties pursuant to Subsection A of Section 7-1-6.9 NMSA 1978;
(4) the amount distributed to the county government road fund pursuant to Section 7-1-6.19 NMSA 1978;
(5) the amount distributed to the local governments road fund pursuant to Section 7-1-6.39 NMSA 1978;
(6) the amount distributed to the municipalities pursuant to Section 7-1-6.27 NMSA 1978;
(7) the amount distributed to the municipal arterial program of the local governments road fund pursuant to Section 7-1-6.28 NMSA 1978;
(8) the amount distributed to a qualified tribe pursuant to a gasoline tax sharing agreement entered into between the secretary of transportation and the qualified tribe pursuant to the provisions of Section 67-3-8.1 NMSA 1978; [and]
(9) the amount distributed to the general fund pursuant to Section 7-1-6.44 NMSA 1978; and
(10) the amount distributed to the highway district project fund pursuant to Section 9 of this 2012 act.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, interest and penalties from the Weight Distance Tax Act."
SECTION 5. Section 7-1-6.19 NMSA 1978 (being Laws 1991, Chapter 9, Section 15, as amended) is amended to read:
"7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND CREATED.--
A. There is created in the state treasury the "county government road fund".
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county government road fund in an amount equal to five and seventy-six hundredths percent of the net receipts attributable to the gasoline tax, except that from July 1, 2012 through the collection of taxes for June 2017, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county government road fund in an amount equal to four and sixty-six hundredths percent of the net receipts attributable to the gasoline tax."
SECTION 6. Section 7-1-6.27 NMSA 1978 (being Laws 1991, Chapter 9, Section 20, as amended) is amended to read:
"7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities for the purposes and amounts specified in this section in an aggregate amount equal to five and seventy-six hundredths percent of the net receipts attributable to the gasoline tax, except that from July 1, 2012 through the collection of taxes for June 2017, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities for the purposes and amounts specified in this section in an aggregate amount equal to four and sixty-six hundredths percent of the net receipts attributable to the gasoline tax.
B. The distribution authorized in this section shall be used for the following purposes:
(1) reconstructing, resurfacing, maintaining, repairing or otherwise improving existing alleys, streets, roads or bridges, or any combination of the foregoing; or laying off, opening, constructing or otherwise acquiring new alleys, streets, roads or bridges, or any combination of the foregoing; provided that any of the foregoing improvements may include, but are not limited to, the acquisition of rights of way;
(2) to provide matching funds for projects subject to cooperative agreements with the [state highway and] department of transportation [department] pursuant to Section 67-3-28 NMSA 1978; and
(3) for expenses of purchasing, maintaining and operating transit operations and facilities, for the operation of a transit authority established by the Municipal Transit Law and for the operation of a vehicle emission inspection program. A municipality may engage in the business of the transportation of passengers and property within the political subdivision by whatever means the municipality may decide and may acquire cars, trucks, motor buses and other equipment necessary for operating the business. A municipality may acquire land, erect buildings and equip the buildings with all the necessary machinery and facilities for the operation, maintenance, modification, repair and storage of the cars, trucks, motor buses and other equipment needed. A municipality may do all things necessary for the acquisition and the conduct of the business of public transportation.
C. For the purposes of this section:
(1) "computed distribution amount" means the distribution amount calculated for a municipality for a month pursuant to Paragraph (2) of Subsection D of this section prior to any adjustments to the amount due to the provisions of Subsections E and F of this section;
(2) "floor amount" means four hundred seventeen dollars ($417);
(3) "floor municipality" means a municipality whose computed distribution amount is less than the floor amount; and
(4) "full distribution municipality" means a municipality whose population at the last federal decennial census was at least two hundred thousand.
D. Subject to the provisions of Subsections E and F of this section, each municipality shall be distributed a portion of the aggregate amount distributable under this section in an amount equal to the greater of:
(1) the floor amount; or
(2) eighty-five percent of the aggregate amount distributable under this section times a fraction, the numerator of which is the municipality's reported taxable gallons of gasoline for the immediately preceding state fiscal year and the denominator of which is the reported total taxable gallons for all municipalities for the same period.
E. Fifteen percent of the aggregate amount distributable under this section shall be referred to as the "redistribution amount". Beginning in August 1990, and each month thereafter, from the redistribution amount there shall be taken an amount sufficient to increase the computed distribution amount of every floor municipality to the floor amount. In the event that the redistribution amount is insufficient for this purpose, the computed distribution amount for each floor municipality shall be increased by an amount equal to the redistribution amount times a fraction, the numerator of which is the difference between the floor amount and the municipality's computed distribution amount and the denominator of which is the difference between the product of the floor amount multiplied by the number of floor municipalities and the total of the computed distribution amounts for all floor municipalities.
F. If a balance remains after the redistribution amount has been reduced pursuant to Subsection E of this section, there shall be added to the computed distribution amount of each municipality that is neither a full distribution municipality nor a floor municipality an amount that equals the balance of the redistribution amount times a fraction, the numerator of which is the computed distribution amount of the municipality and the denominator of which is the sum of the computed distribution amounts of all municipalities that are neither full distribution municipalities nor floor municipalities."
SECTION 7. Section 7-1-6.28 NMSA 1978 (being Laws 1991, Chapter 9, Section 22, as amended) is amended to read:
"7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the municipal arterial program of the local governments road fund created in Section 67-3-28.2 NMSA 1978 in an amount equal to one and forty-four hundredths percent of the net receipts attributable to the gasoline tax, except that from July 1, 2012 through the collection of taxes for June 2017, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the municipal arterial program of the local governments road fund created in Section 67-3-28.2 NMSA 1978 in an amount equal to one and seventeen hundredths percent of the net receipts attributable to the gasoline tax."
SECTION 8. Section 7-1-6.39 NMSA 1978 (being Laws 1995, Chapter 6, Section 9, as amended) is amended to read:
"7-1-6.39. DISTRIBUTION OF SPECIAL FUEL EXCISE TAX TO LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the local governments road fund in an amount equal to nine and fifty-two hundredths percent of the net receipts attributable to the taxes, exclusive of penalties and interest, from the special fuel excise tax imposed by the Special Fuels Supplier Tax Act, except that from July 1, 2012 through the collection of taxes for June 2017, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the local governments road fund in an amount equal to eight percent of the net receipts attributable to the taxes, exclusive of penalties and interest, from the special fuel excise tax imposed by the Special Fuels Supplier Tax Act."
SECTION 9. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--HIGHWAY DISTRICT PROJECT FUND.--
A. Beginning July 1, 2012 and ending with the receipts collected for June 2017, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the highway district project fund created in Section 67-3-65.2 NMSA 1978 in an amount equal to nineteen percent of the net receipts attributable to the gasoline tax.
B. Beginning July 2012 and ending with the receipts collected in June 2017, a distribution pursuant to Section
7-1-6.1 NMSA 1978 shall be made to the highway district project fund created in Section 67-3-65.2 NMSA 1978 in an amount equal to sixteen percent of the net receipts attributable to the special fuel excise tax."
SECTION 10. Section 7-13-3 NMSA 1978 (being Laws 1971, Chapter 207, Section 3, as amended) is amended to read:
"7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GASOLINE TAX".--
A. For the privilege of receiving gasoline in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of gasoline received in New Mexico.
B. The tax imposed by Subsection A of this section shall be seventeen cents ($.17) per gallon received in New Mexico, except that from July 1, 2012 through June 30, 2017, the tax imposed by Subsection A of this section shall be twenty-one cents ($.21) per gallon received in New Mexico.
C. The tax imposed by this section may be called the "gasoline tax"."
SECTION 11. Section 7-16A-3 NMSA 1978 (being Laws 1992, Chapter 51, Section 3, as amended) is amended to read:
"7-16A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS SPECIAL FUEL EXCISE TAX.--
A. For the privilege of receiving or using special fuel in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of special fuel received in New Mexico.
B. The tax imposed by Subsection A of this section shall be twenty-one cents ($.21) per gallon of special fuel received or used in New Mexico, except that from July 1, 2012 through June 30, 2017, the tax imposed by Subsection A of this section shall be twenty-five cents ($.25) per gallon received or used in New Mexico.
C. The tax imposed by this section may be called the "special fuel excise tax"."
SECTION 12. A new Section 67-3-65.2 NMSA 1978 is enacted to read:
"67-3-65.2. [NEW MATERIAL] HIGHWAY DISTRICT PROJECT FUND CREATED--USE--LIMITATION.--
A. The "highway district project 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. Money in the fund shall not be transferred to any other fund. The department of transportation shall administer the fund, and money in the fund is appropriated to the department of transportation 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 of transportation's authorized representative.
B. The highway district project fund shall be used solely for the acquisition of rights of way or for state highway project planning, designing, engineering, construction, improvement or maintenance of state highway projects. Annually, the department of transportation shall estimate distributions to the fund and shall select state highway projects in each of the department's six highway construction districts so that an equal amount from the fund is expended in each district; provided, that none of the amounts distributed pursuant to this section shall be pledged for the repayment of bonds or for any other debt service."
SECTION 13. APPLICABILITY.--The distributions pursuant to Section 9 of this act apply to receipts from the gasoline tax and the special fuel excise tax that are attributable to sales subject to those taxes on July 1, 2012 through June 30, 2017.
SECTION 14. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.
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