BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  1

DATE: March 5, 2001	Submitted by: TAXATION AND REVENUE DEPT.       
	T. GLENN ELLINGTON, SECRETARY
BILL NUMBER:  HB-341 as amended by House Transportation Committee

SPONSOR:  Representative Larranaga

BILL SHORT TITLE:  Intercept Gas Tax Revenue to Certain Cities

DESCRIPTION:  This bill provides that the department redirect the two portions of gasoline tax revenue distributed by formula to the City of Belen, redirecting the distribution to the State Highway and Transportation Department (SH&TD) until SHTD certifies that $200 thousand has been diverted. HTC amendments makes the revenue diversion positive. The redistribution will occur even if SHTD and the City of Belen come to a mutually acceptable agreement.

EFFECTIVE DATE:   Not specified – assume 90 days following adjournment (June 15, 2001);
			see Technical Issues.

FISCAL IMPACT (Thousands of dollars)   Parenthesis ( ) indicate a revenue loss:

Estimated Impact on Revenues	Recurring or		
			Nonrecurring	Funds	
	(FY 2000-2001)	(FY 2001-2002)	     Impact     	         Affected         	
	(20)*	(180)	Nonrecurring	City of Belen	
	20*	180	Nonrecurring	State Highway & Transportation Dept.	

The City of Belen received an average gasoline tax distribution of about $20 thousand per month during calendar year 2000, so the $200 thousand total should be intercepted before the end of fiscal year 2002.  The July distribution of June 2001 tax receipts has been shown as a fiscal year 2000-2001 impact in this illustration.

TECHNICAL ISSUES:
•	The bill has no effective date specification and so becomes effective on June 15, 2001. In all likelihood, the June distribution of May gasoline tax revenue will be calculated prior to June 15, but the distribution may not be completed until after June 15. The department will administer this provision as if it had an effective date of July 1, 2001 – first intercepting and redirecting the July distribution of June, 2001 gasoline tax revenue.

ADMINISTRATIVE IMPACT:  A minor negative administrative impact on the department. 

OTHER ISSUES AND IMPACTS
The department finds this tax distribution intercept presents a somewhat disturbing precedent. The department already administers numerous tax intercepts for many of the New Mexico Finance Authority bonds issued for county and municipal projects and equipment, and those intercepts require a significant resource allocation for which the department is not reimbursed. The department does not relish the role of administering on-going monthly tax intercepts to fix contentious disputes between jurisdictions and agencies.