52nd legislature - STATE OF NEW MEXICO - second session, 2016
RELATING TO TAXATION; PROVIDING FOR A TEMPORARY INCREASE IN THE MOTOR VEHICLE EXCISE TAX TO FUND THE COMPLETION OF MAJOR INVESTMENT HIGHWAY PROJECTS IN EACH OF THE SIX STATE TRANSPORTATION COMMISSION DISTRICTS; CREATING THE HIGHWAY DISTRICT PROJECTS FUND; AUTHORIZING THE ISSUANCE OF HIGHWAY DISTRICT PROJECTS BONDS; MAKING AN APPROPRIATION.
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. Through June 30, 2031, the rate of the motor vehicle excise tax is five 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, allowances granted for vehicle trade-ins may be deducted from the price paid or the reasonable value of the vehicle purchased.
B. On and after July 1, 2031, the rate of the motor vehicle excise tax 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, allowances granted for vehicle trade-ins may be deducted from the price paid or the reasonable value of the vehicle purchased."
SECTION 2. Section 7-14-10 NMSA 1978 (being Laws 1988, Chapter 73, Section 20, as amended) is amended to read:
"7-14-10. DISTRIBUTION OF PROCEEDS.--
A. Through June 30, 2031, the receipts from the motor vehicle excise tax and any associated interest and penalties shall be deposited in the motor vehicle suspense fund. As of the end of each month:
(1) sixty percent of the net receipts attributable to the tax and associated penalties and interest shall be distributed to the general fund; and
(2) forty percent of the net receipts attributable to the tax and any associated interest and penalties shall be distributed to the highway district projects fund created pursuant to Section 67-3-59.5 NMSA 1978.
B. On and after July 1, 2031, the receipts from the tax and any associated interest and penalties shall be deposited in the "motor vehicle suspense fund", hereby created in the state treasury. As of the end of each month, the net receipts attributable to the tax and associated penalties and interest shall be distributed to the general fund."
SECTION 3. A new Section 67-3-59.5 NMSA 1978 is enacted to read:
"67-3-59.5. [NEW MATERIAL] HIGHWAY DISTRICT PROJECTS FUND CREATED--USE.--
A. The "highway district projects fund" is created in the state treasury and shall be administered by the department. Money in the fund is appropriated to the department for the purposes of carrying out the provisions of this section and Section 67-3-59.6 NMSA 1978. The fund shall consist of money from taxes distributed to the fund. Earnings on investment of the fund shall be credited to the fund. Balances in the fund at the end of any fiscal year shall remain in the fund after all required debt service payments and other required debt service and reserve fund deposits have been made for bonds issued pursuant to Section 67-3-59.6 NMSA 1978; provided that when the bonds have been retired, balances in the fund shall revert to the state road fund. The amounts that revert to the state road fund shall be used for the acquisition of rights of way, planning, design, engineering, construction, improvement and maintenance for state highway projects.
B. Except as provided in Subsection E of Section 67-3-59.6 NMSA 1978, money in the fund shall be used solely for payments and other deposits of debt service or for reserve requirements for the bonds issued to accomplish the major investment highway projects identified in Subsection D of this section for each of the six state transportation commission districts. The bonds authorized by this section may be called "highway district projects bonds".
C. The taxes required by law to be distributed to the highway district projects fund may be pledged for the payment of highway district projects bonds issued pursuant to Section 67-3-59.6 NMSA 1978 for the major investment highway projects authorized in Subsection D of this section.
D. The state transportation commission may issue and sell highway district projects bonds in compliance with the provisions of Section 67-3-59.6 NMSA 1978 when the commission determines the need for the issuance of the bonds for the following major investment highway projects:
(1) in district 1:
(a) New Mexico route 136 roadway reconstruction from the port of entry north to McNutt road in the border region, from mile point 0.0 to mile point 9.1;
(b) New Mexico route 1 roadway reconstruction and the interstate 25 Nogal canyon oversize or overweight bypass, from mile point 8.9 to mile point 20.8;
(c) interstate 25 roadway reconstruction and widening to six lanes, including existing bridges, and interstate 25 and interstate 10 interchange and United States route 70 interchange, including University interchange, from mile point 0.0 to mile point 6.0;
(d) United States route 70 roadway reconstruction, including new six-lane construction, from Solano avenue to interstate 25 and United States route 70 interchange, from mile point 148.8 to mile point 150.1; and
(e) United States route 180 roadway rehabilitation, including passing lanes, from Deming to Bayard, from mile point 122 to mile point 160;
(2) in district 2:
(a) New Mexico route 529 shoulder widening and passing lanes, from mile point 0.0 to mile point 22.0;
(b) United States route 285 shoulder widening and reconstruction from the state line to Loving, from mile point 0.0 to mile point 20.0;
(c) United States route 54 roadway rehabilitation, including shoulders and passing lanes, from mile point 119.0 to mile point 130.0 and from mile point 146.0 to mile point 163.0;
(d) New Mexico route 8 roadway rehabilitation from Eunice north to the junction with United States route 62; and
(e) United States route 380 roadway rehabilitation, including shoulder widening, from Capitan to Hondo, from mile point 85.0 to mile point 92.0;
(3) in district 3:
(a) New Mexico route 45 roadway reconstruction, including widening to six lanes, from interstate 25 to Central avenue, from mile point 3.0 to mile point 13.0; and
(b) interstate 25 roadway reconstruction and widening to six lanes, including existing bridges, from New Mexico route 314 to the Broadway interchange, from mile point 213.7 to mile point 215.3;
(4) in district 4:
(a) United States route 54 bridge replacement and roadway reconstruction, including the Canadian river bridge, from mile point 323.0 to mile point 326.5;
(b) United States route 56 roadway rehabilitation, including shoulder widening, from Springer east to Abbott, from mile point 0.0 to mile point 8.0;
(c) interstate 25 roadway reconstruction from the north Raton interchange to the state line, from mile point 455.0 to mile point 460.0; and
(d) United States route 64 and 87 pavement rehabilitation and spot reconstruction, from mile point 364.8 to mile point 391.7;
(5) in district 5:
(a) United States route 64 truss bridge replacement at mile point 22.1 near Shiprock;
(b) United States route 64 roadway reconstruction from the Rio Arriba county line east to United States route 84, from mile point 87.0 to mile point 107.0 and from mile point 114.7 to mile point 135.5;
(c) United States route 491 roadway reconstruction, including bridge rehabilitation, from Shiprock to the Colorado state line, from mile point 94.2 to mile point 107.0; and
(d) New Mexico route 68 roadway reconstruction, including subgrade stabilization, access management and multi-modal enhancement from Espanola to Velarde, from mile point 3.8 to mile point 13.8; and
(6) in district 6:
(a) New Mexico route 118 roadway reconstruction, including drainage improvements east of Gallup, from mile point 28.0 to mile point 37.0; and
(b) interstate 40 roadway reconstruction, from mile point 38.0 to mile point 47.0."
SECTION 4. A new Section 67-3-59.6 NMSA 1978 is enacted to read:
"67-3-59.6. [NEW MATERIAL] HIGHWAY DISTRICT PROJECTS BONDS--ISSUANCE--LIMITS--APPROVAL.--
A. In order to provide funds to finance the major investment highway projects identified in Section 67-3-59.5 NMSA 1978, the state transportation commission, or the New Mexico finance authority at the commission's direction and on the commission's behalf, may issue highway district projects bonds from time to time, subject to the limitations of this section and Section 67-3-59.5 NMSA 1978, payable from taxes required by law to be paid into the highway district projects fund. The proceeds from the sale of the bonds are appropriated to the department for the purposes described in this section and in Section 67-3-59.5 NMSA 1978.
B. The state transportation commission, or the New Mexico finance authority at the commission's direction, may issue bonds to refund other bonds issued pursuant to this section or by exchange or current or advance refunding.
C. The total aggregate outstanding principal amount of bonds issued from time to time pursuant to this section shall not, without additional authorization of the state legislature, exceed six hundred fifty million dollars ($650,000,000).
D. The state transportation commission, or the New Mexico finance authority at the commission's direction, shall determine all terms, covenants and conditions of the bonds; provided that the project design life of a major investment highway project meets or exceeds the life of the bonds issued for that project. The state transportation commission, or the New Mexico finance authority if directed, may enter into interest rate exchange agreements, interest rate swap contracts, insurance agreements, remarketing agreements and any other agreements deemed necessary in connection with the issuance of the bonds.
E. Proceeds of the bonds and amounts on deposit in the highway district projects fund may be used to pay expenses incurred in the preparation, administration, issuance and sale of the bonds and, together with the earnings on the proceeds of the bonds, may be used to pay rebate, penalty, interest and other obligations relating to the bonds and the proceeds of the bonds pursuant to the federal Internal Revenue Code of 1986, as amended.
F. This section is full authority for the issuance and sale of the bonds, and the bonds shall not be invalid for any irregularity or defect in the proceedings for their issuance and sale and shall be incontestable in the hands of bona fide purchasers or holders of the bonds for value.
G. The bonds shall be legal investments for a person or board charged with the investment of public funds and may be accepted as security for a deposit of public money and, with the interest thereon, are exempt from taxation by the state or a political subdivision or agency of the state.
H. Any law authorizing the imposition or distribution of taxes or fees paid into the highway district projects fund or that affects those taxes and fees shall not be amended or repealed or otherwise directly or indirectly modified so as to impair outstanding bonds secured by a pledge of revenues from those taxes and fees paid into the highway district projects fund, unless the bonds have been discharged in full or provisions have been made for a full discharge. In addition, while any bonds issued by the state transportation commission pursuant to the provisions of this section remain outstanding, the powers or duties of the state transportation commission shall not be diminished or impaired in any manner that will affect adversely the interests and rights of the holder of such bonds.
I. Bonds issued pursuant to this section shall not constitute a general obligation of the state and shall be paid solely from taxes and fees deposited into the highway district projects fund."
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2016.