0001| SENATE BILL 772
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| TIMOTHY Z. JENNINGS
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0006|
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO TAXATION; INCREASING THE GASOLINE TAX AND STATE
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0013| GROSS RECEIPTS TAX RATES CONTINGENT UPON CERTIFICATION BY THE
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0014| GOVERNOR THAT THE TAX INCREASES ARE NECESSARY TO PROVIDE
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0015| ADDITIONAL REVENUE FOR STATEWIDE ROAD IMPROVEMENTS; AMENDING AND
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0016| ENACTING SECTIONS OF THE NMSA 1978.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994,
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0020| Chapter 5, Section 2, as amended by Laws 1995, Chapter 6,
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0021| Section 1 and also by Laws 1995, Chapter 36, Section 1) is
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0022| amended to read:
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0023| "7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--
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0024| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0025| 1978 shall be made to the state aviation fund in an amount equal
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0001| to three and fifty-nine hundredths percent of the gross receipts
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0002| attributable to the sale of fuel specially prepared and sold for
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0003| use in turboprop or jet-type engines as determined by the
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0004| department.
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0005| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0006| 1978 shall be made to the state aviation fund in an amount equal
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0007| to [twenty-six hundredths] twenty-two hundredths of one
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0008| percent of gasoline taxes, exclusive of penalties and interest,
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0009| collected pursuant to the Gasoline Tax Act."
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0010| Section 2. Section 7-1-6.8 NMSA 1978 (being Laws 1983,
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0011| Chapter 211, Section 13, as amended) is amended to read:
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0012| "7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A
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0013| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made
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0014| to the motorboat fuel tax fund in an amount equal to [thirteen
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hundredths] eleven hundredths of one percent of the net
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0016| receipts attributable to the gasoline tax."
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0017| Section 3. Section 7-1-6.9 NMSA 1978 (being Laws 1991,
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0018| Chapter 9, Section 11, as amended) is amended to read:
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0019| "7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES
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0020| AND COUNTIES.--
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0021| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0022| 1978 shall be made in an amount equal to [ten and thirty-eight
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hundredths] eight and eighty-two hundredths percent of the
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0024| net receipts attributable to the taxes, exclusive of penalties
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0025| and interest, imposed by the Gasoline Tax Act.
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0001| B. The amount determined in Subsection A of this
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0002| section shall be distributed as follows:
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0003| (1) ninety percent of the amount shall be paid
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0004| to the treasurers of municipalities and H class counties in the
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0005| proportion that the taxable motor fuel sales in each of the
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0006| municipalities and H class counties bears to the aggregate
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0007| taxable motor fuel sales in all of these municipalities and H
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0008| class counties; and
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0009| (2) ten percent of the amount shall be paid to
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0010| the treasurers of the counties, including H class counties, in
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0011| the proportion that the taxable motor fuel sales outside of
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0012| incorporated municipalities in each of the counties bears to the
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0013| aggregate taxable motor fuel sales outside of incorporated
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0014| municipalities in all of the counties.
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0015| C. This distribution shall be paid into the
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0016| municipal treasury or county general fund for general purposes
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0017| or for any special purposes designated by the governing body of
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0018| the municipality or county. Any municipality or H class county
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0019| that has created or that creates a "street improvement fund" to
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0020| which gasoline tax revenues or distributions are irrevocably
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0021| pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that
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0022| has pledged all or a portion of gasoline tax revenues or
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0023| distributions to the payment of bonds shall receive its
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0024| proportion of the distribution of revenues under this section
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0025| impressed with and subject to these pledges."
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0001| Section 4. Section 7-1-6.10 NMSA 1978 (being Laws 1983,
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0002| Chapter 211, Section 15, as amended by Laws 1995, Chapter 6,
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0003| Section 4 and also by Laws 1995, Chapter 16, Section 11) is
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0004| amended to read:
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0005| "7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--
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0006| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0007| 1978 shall be made to the state road fund in an amount equal to
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0008| the net receipts attributable to the taxes, surcharges,
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0009| penalties and interest imposed pursuant to the Gasoline Tax Act
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0010| and to the taxes, surtaxes, fees, penalties and interest imposed
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0011| pursuant to the Special Fuels Tax Act, the Special Fuels
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0012| Supplier Tax Act and the Alternative Fuel Tax Act less:
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0013| (1) the amount distributed to the state
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0014| aviation fund pursuant to Subsection [C] B of Section
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0015| 7-1-6.7 NMSA 1978;
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0016| (2) the amount distributed to the motorboat
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0017| fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;
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0018| (3) the amount distributed to municipalities
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0019| and counties pursuant to Subsection A of Section 7-1-6.9 NMSA
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0020| 1978;
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0021| (4) the amount distributed to the county
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0022| government road fund pursuant to Section 7-1-6.19 NMSA 1978;
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0023| (5) the amount distributed to the [corrective
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action] local governments road fund pursuant to Section
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0025| [7-1-6.25] 7-1-6.39 NMSA 1978;
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0001| (6) the amount distributed to the
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0002| municipalities pursuant to Section 7-1-6.27 NMSA 1978; and
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0003| (7) the amount distributed to the municipal
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0004| arterial program [and] of the local governments road fund
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0005| pursuant to Section 7-1-6.28 NMSA 1978 [and
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(8) the amount distributed to the general fund
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pursuant to Section 7-1-6.37 NMSA 1978].
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0008| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0009| 1978 shall be made to the state road fund in an amount equal to
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0010| the net receipts attributable to the taxes, fees, interest and
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0011| penalties from the Weight Distance Tax Act."
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0012| Section 5. Section 7-1-6.19 NMSA 1978 (being Laws 1991,
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0013| Chapter 9, Section 15, as amended) is amended to read:
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0014| "7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND
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0015| CREATED.--
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0016| A. There is created in the state treasury the
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0017| "county government road fund".
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0018| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0019| 1978 shall be made to the county government road fund in an
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0020| amount equal to [five and seventy-six hundredths] four and
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0021| nine-tenths percent of the net receipts attributable to the
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0022| gasoline tax."
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0023| Section 6. Section 7-1-6.27 NMSA 1978 (being Laws 1991,
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0024| Chapter 9, Section 20, as amended) is amended to read:
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0025| "7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--
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0001| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0002| 1978 shall be made to municipalities for the purposes and
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0003| amounts specified in this section in an aggregate amount equal
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0004| to [five and seventy-six hundredths] four and nine-tenths
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0005| percent of the net receipts attributable to the gasoline tax.
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0006| B. The distribution authorized in this section shall
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0007| be used for the following purposes:
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0008| (1) reconstructing, resurfacing, maintaining,
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0009| repairing or otherwise improving existing alleys, streets, roads
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0010| or bridges, or any combination of the foregoing; or laying off,
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0011| opening, constructing or otherwise acquiring new alleys,
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0012| streets, roads or bridges, or any combination of the foregoing;
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0013| provided that any of the foregoing improvements may include, but
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0014| are not limited to, the acquisition of rights of way; and
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0015| (2) for expenses of purchasing, maintaining and
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0016| operating transit operations and facilities, for the operation
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0017| of a transit authority established by the municipal transit law
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0018| and for the operation of a vehicle emission inspection program.
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0019| A municipality may engage in the business of the transportation
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0020| of passengers and property within the political subdivision by
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0021| whatever means the municipality may decide and may acquire cars,
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0022| trucks, motor buses and other equipment necessary for operating
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0023| the business. A municipality may acquire land, erect buildings
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0024| and equip the buildings with all the necessary machinery and
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0025| facilities for the operation, maintenance, modification, repair
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0001| and storage of the cars, trucks, motor buses and other equipment
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0002| needed. A municipality may do all things necessary for the
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0003| acquisition and the conduct of the business of public
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0004| transportation.
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0005| C. For the purposes of this section:
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0006| (1) "computed distribution amount" means the
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0007| distribution amount calculated for a municipality for a month
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0008| pursuant to Paragraph (2) of Subsection D of this section prior
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0009| to any adjustments to the amount due to the provisions of
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0010| Subsections E and F of this section;
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0011| (2) "floor amount" means four hundred seventeen
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0012| dollars ($417);
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0013| (3) "floor municipality" means a municipality
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0014| whose computed distribution amount is less than the floor
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0015| amount; and
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0016| (4) "full distribution municipality" means a
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0017| municipality whose population at the last federal decennial
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0018| census was at least two hundred thousand.
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0019| D. Subject to the provisions of Subsections E and F
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0020| of this section, each municipality shall be distributed a
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0021| portion of the aggregate amount distributable under this section
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0022| in an amount equal to the greater of:
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0023| (1) the floor amount; or
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0024| (2) eighty-five percent of the aggregate amount
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0025| distributable under this section times a fraction, the numerator
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0001| of which is the municipality's reported taxable gallons of
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0002| gasoline for the immediately preceding state fiscal year and the
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0003| denominator of which is the reported total taxable gallons for
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0004| all municipalities for the same period.
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0005| E. Fifteen percent of the aggregate amount
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0006| distributable under this section shall be referred to as the
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0007| "redistribution amount". Beginning in August 1990, and each
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0008| month thereafter, from the redistribution amount there shall be
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0009| taken an amount sufficient to increase the computed distribution
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0010| amount of every floor municipality to the floor amount. In the
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0011| event that the redistribution amount is insufficient for this
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0012| purpose, the computed distribution amount for each floor
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0013| municipality shall be increased by an amount equal to the
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0014| redistribution amount times a fraction, the numerator of which
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0015| is the difference between the floor amount and the
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0016| municipality's computed distribution amount and the denominator
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0017| of which is the difference between the product of the floor
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0018| amount multiplied by the number of floor municipalities and the
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0019| total of the computed distribution amounts for all floor
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0020| municipalities.
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0021| F. If a balance remains after the redistribution
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0022| amount has been reduced pursuant to Subsection E of this
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0023| section, there shall be added to the computed distribution
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0024| amount of each municipality that is neither a full distribution
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0025| municipality nor a floor municipality an amount that equals the
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0001| balance of the redistribution amount times a fraction, the
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0002| numerator of which is the computed distribution amount of the
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0003| municipality and the denominator of which is the sum of the
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0004| computed distribution amounts of all municipalities that are
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0005| neither full distribution municipalities nor floor
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0006| municipalities."
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0007| Section 7. Section 7-1-6.28 NMSA 1978 (being Laws 1991,
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0008| Chapter 9, Section 22, as amended) is amended to read:
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0009| "7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF
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0010| LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section
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0011| 7-1-6.1 NMSA 1978 shall be made to the municipal arterial
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0012| program of the local governments road fund created in Section
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0013| 67-3-28.2 NMSA 1978 in an amount equal to [one and forty-four
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hundredths] one and twenty-two hundredths percent of the net
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0015| receipts attributable to the gasoline tax."
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0016| Section 8. A new section of the Tax Administration Act,
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0017| Section 7-1-6.40 NMSA 1978, is enacted to read:
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0018| "7-1-6.40. [NEW MATERIAL] DISTRIBUTION--STATE GROSS
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0019| RECEIPTS TAX--STATE ROAD FUND.--A distribution pursuant to
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0020| Section 7-1-6.1 NMSA 1978 shall be made to the state road fund
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0021| in an amount equal to four and seventy-six hundredths percent of
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0022| the net receipts attributable to the gross receipts tax."
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0023| Section 9. Section 7-9-4 NMSA 1978 (being Laws 1966,
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0024| Chapter 47, Section 4, as amended) is amended to read:
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0025| "7-9-4. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GROSS
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0001| RECEIPTS TAX".--
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0002| A. For the privilege of engaging in business, an
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0003| excise tax equal to five and one-fourth percent of gross
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0004| receipts is imposed on any person engaging in business in New
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0005| Mexico.
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0006| B. The tax imposed by this section shall be referred
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0007| to as the "gross receipts tax"."
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0008| Section 10. Section 7-13-3 NMSA 1978 (being Laws 1971,
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0009| Chapter 207, Section 3, as amended) is amended to read:
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0010| "7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS
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0011| "GASOLINE TAX".--
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0012| A. For the privilege of receiving gasoline in this
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0013| state, there is imposed an excise tax at a rate provided in
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0014| Subsection B of this section on each gallon of gasoline
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0015| received in New Mexico.
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0016| B. The tax imposed by Subsection A of this section
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0017| shall be [seventeen cents ($.17)] twenty cents ($.20) per
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0018| gallon received in New Mexico.
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0019| C. The tax imposed by this section may be called the
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0020| "gasoline tax"."
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0021| Section 11. Section 67-3-65.1 NMSA 1978 (being Laws 1983,
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0022| Chapter 211, Section 40) is amended to read:
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0023| "67-3-65.1. STATE ROAD FUND DISTRIBUTION--REQUIREMENTS.--
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0024| A. The amounts distributed to the state road fund
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0025| pursuant to Section 7-1-6.10 NMSA 1978 shall be used for
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0001| maintenance, construction and improvement of the public highways
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0002| and to meet federal allotments under the federal-aid road laws,
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0003| but sufficient money from the state road fund shall be set aside
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0004| each year by the state treasurer to pay the principal and
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0005| interest coupons of highway debentures issued to anticipate the
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0006| collection of this revenue as the principal and interest coupons
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0007| mature.
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0008| B. Revenues from the increase in the gasoline tax
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0009| and the gross receipts tax increase imposed pursuant to
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0010| certification by the governor and distributed to the state road
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0011| fund shall be used for road improvements statewide, with
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0012| priority given to four-lane highways and improvements to state
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0013| road 44 and United States highways 54, 70 and 285."
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0014| Section 12. EFFECTIVE DATE--CONTINGENCY.--The provisions
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0015| of this act shall become effective only upon certification by
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0016| the governor that gross receipts tax and gasoline tax rate
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0017| increases are needed to raise additional revenues for statewide
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0018| road improvements that are necessary for purposes of safety,
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0019| commerce and economic development. If the governor does not
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0020| certify the need for the tax increases by June 30, 1998, the
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0021| provisions of this act shall not take effect. If the governor
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0022| certifies the need for the tax increases on or before June 30,
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0023| 1998, the provisions of this act shall take effect as follows:
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0024| A. the effective date of the provisions of Sections
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0025| 9 through 11 of this act is the July 1 or January 1, whichever
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0001| date occurs first, after the expiration of at least three months
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0002| from the date the governor issues his certification pursuant to
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0003| this section; and
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0004| B. the effective date of the provisions of Sections
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0005| 1 through 8 of this act is the August 1 or February 1
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0006| immediately following the effective date of Sections 9 through
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0007| 11 of this act.
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0008|
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0009|
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0010|
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0011| FORTY-SECOND LEGISLATURE
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0012| SECOND SESSION, 1996
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0013|
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0014|
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0015| JANUARY 31, 1996
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0016|
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0017| Mr. President:
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0018|
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0019| Your COMMITTEES' COMMITTEE, to whom has been referred
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0020|
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0021| SENATE BILL 772
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0022|
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0023| has had it under consideration and finds same to be GERMANE, PURSUANT
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0024| TO CONSTITUTIONAL PROVISIONS, and thence referred to the WAYS AND
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0025| MEANS COMMITTEE.
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0001|
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0002| Respectfully submitted,
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0003|
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0004|
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0005|
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0006|
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0007| __________________________________
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0008| SENATOR MANNY M. ARAGON, Chairman
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0009|
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0010|
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0011|
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0012| Adopted_______________________ Not Adopted_______________________
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0013| (Chief Clerk) (Chief Clerk)
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0014|
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0015|
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0016| Date ________________________
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0017|
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0018|
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0019|
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0020| S0772CC1
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