NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
| SPONSOR: | Silva | DATE TYPED: | 02/05/00 | HB | 405 | ||
| SHORT TITLE: | Jet Fuel Gross Receipts Tax Deduction | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
| negative* | General Fund | |||
| negative* | Aviation Fund | |||
(Parenthesis ( ) Indicate Revenue Decreases)
* Analysis was not received from Taxation and Revenue Department in time for this report.
SOURCES OF INFORMATION
Legislative Finance Committee (LFC)
SUMMARY
Synopsis of Bill
This bill gives 100% deduction of gross receipts and compensating tax on the sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the Taxation and Revenue Department (TRD). This bill would impact two funds, the general fund and the state aviation fund.
The state aviation fund currently receives revenue from: un-refunded taxes collected on the sale of motor fuel for aircraft (64-1-15); 3.59% of taxes collected from the sale of fuel specially prepared and sold for use in turboprop or jet-type engines (7-1-6.7(A)); and 0.26% of gasoline taxes collected net of penalties and interest (7-1.6.7(B)). Monies in the state aviation fund are used for planning, construction and maintenance of airports, navigation aids and related facilities serving New Mexico. This bill would decrease revenues used for this purpose.
FISCAL IMPLICATIONS
Unknown. At the time of this analysis, the Legislative Finance Committee had yet to receive analysis from the Taxation and Revenue Department.
JBE/gm