HOUSE BILL 15
46th legislature - STATE OF NEW MEXICO - first special session, 2003
INTRODUCED BY
Ben Lujan
AN ACT
RELATING TO PUBLIC FINANCES; PROVIDING TAX RELIEF FOR FAMILIES AND FOR ECONOMIC DEVELOPMENT; FUNDING TAX RELIEF MEASURES; IMPOSING FEES; AUTHORIZING THE ISSUANCE OF BONDS; APPROVING CERTAIN PROJECTS; CHANGING DISTRIBUTIONS; MAKING APPROPRIATIONS; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. 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; and
(8) the amount distributed to a qualified tribe pursuant to a gasoline tax sharing agreement entered into between the secretary of [highway and] transportation and the qualified tribe pursuant to the provisions of Section
67-3-8.1 NMSA 1978.
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, [fees] interest and penalties from the Weight Distance Tax Act."
Section 2. Section 7-1-6.12 NMSA 1978 (being Laws 1983, Chapter 211, Section 17, as amended) is amended to read:
"7-1-6.12. TRANSFER--REVENUES FROM MUNICIPAL LOCAL OPTION GROSS RECEIPTS TAXES--REVENUES FROM LOCAL OPTION COMPENSATING TAXES.--
A. A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality for which the department is collecting a local option gross receipts tax imposed by that municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax imposed by that municipality, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that municipality of the local option gross receipts tax and any additional administrative fee withheld pursuant to Subsection C of Section [1 of this 1997 act] 7-1-6.41 NMSA 1978.
B. A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality for which the department is collecting a local option compensating tax imposed by that municipality in an amount, subject to any increase or decrease pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option compensating tax imposed by that municipality."
Section 3. Section 7-1-6.13 NMSA 1978 (being Laws 1983, Chapter 211, Section 18, as amended) is amended to read:
"7-1-6.13. TRANSFER--REVENUES FROM COUNTY LOCAL OPTION GROSS RECEIPTS TAXES--REVENUES FROM LOCAL OPTION COMPENSATING TAXES.--
A. Except as provided in Subsection [B] C of this section, a transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each county for which the department is collecting a local option gross receipts tax imposed by that county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax imposed by that county, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that county of the local option gross receipts tax and any additional administrative fee withheld pursuant to Subsection C of Section 7-1-6.41 NMSA 1978.
B. A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each county for which the department is collecting a local option compensating tax imposed by that county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option compensating tax imposed by that county.
[B.] C. In lieu of a distribution pursuant to Subsection A of this section to a class B county with a population, as shown in the last federal decennial census, of more than twenty-five thousand and a net taxable value in the 2002 property tax year of less than two hundred million dollars ($200,000,000), the department shall make a distribution of the following amounts to the largest municipality in that county for the purpose of maintaining and operating a hospital:
(1) amounts attributable to the second
one-eighth percent increment of the local option gross receipts tax; and
(2) amounts attributable to the special county hospital gross receipts tax."
Section 4. Section 7-1-6.15 NMSA 1978 (being Laws 1983, Chapter 211, Section 20, as amended) is amended to read:
"7-1-6.15. ADJUSTMENTS OF DISTRIBUTIONS OR TRANSFERS TO MUNICIPALITIES OR COUNTIES.--
A. The provisions of this section apply to:
(1) any distribution to a municipality of gross receipts taxes pursuant to Section 7-1-6.4 NMSA 1978 or of interstate telecommunications gross receipts tax pursuant to Section 7-1-6.36 NMSA 1978;
(2) any transfer to a municipality with respect to any local option gross receipts tax or local option compensating tax imposed by that municipality;
(3) any transfer to a county with respect to any local option gross receipts tax or local option compensating tax imposed by that county;
(4) any distribution to a county pursuant to Section 7-1-6.16 NMSA 1978;
(5) any distribution to a municipality or a county of gasoline taxes pursuant to Section 7-1-6.9 NMSA 1978;
(6) any transfer to a county with respect to any tax imposed in accordance with the Local Liquor Excise Tax Act;
(7) any distribution to a municipality or a county of cigarette taxes pursuant to Sections 7-1-6.11, 7-12-15 and 7-12-16 NMSA 1978;
(8) any distribution to a county from the county government road fund pursuant to Section 7-1-6.26 NMSA 1978;
(9) any distribution to a municipality of gasoline taxes pursuant to Section 7-1-6.27 NMSA 1978; and
(10) any distribution to a municipality, county, school district or special district of oil and gas ad valorem production tax reduced as a result of a refund requested in December 1998 with respect to production of carbon dioxide.
B. If the secretary determines that any prior distribution or transfer to a political subdivision was erroneous, the secretary shall increase or decrease the next distribution or transfer amount for that political subdivision after the determination, except as provided in Subsection C, D or E of this section, by the amount necessary to correct the error. Subject to the provisions of Subsection E of this section, the secretary shall notify the political subdivision of the amount of each increase or decrease.
C. No decrease shall be made to current or future distributions or transfers to a political subdivision for any excess distribution or transfer made to that political subdivision more than one year prior to the calendar year in which the determination of the secretary was made.
D. The secretary, in lieu of recovery from the next distribution or transfer amount, may recover an excess distribution or transfer of one hundred dollars ($100) or more to the political subdivision in installments from current and future distributions or transfers to that political subdivision pursuant to an agreement with the officials of the political subdivision whenever the amount of the distribution or transfer decrease for the political subdivision exceeds ten percent of the average distribution or transfer amount for that political subdivision for the twelve months preceding the month in which the secretary's determination is made; provided that for the purposes of this subsection, the "average distribution or transfer amount" shall be the arithmetic mean of the distribution or transfer amounts within the twelve months immediately preceding the month in which the determination is made.
E. Except for the provisions of this section, if the amount by which a distribution or transfer would be adjusted pursuant to Subsection B of this section is one hundred dollars ($100) or less, no adjustment or notice need be made.
F. The secretary is authorized to decrease a distribution to a municipality or county upon being directed to do so by the secretary of finance and administration pursuant to the State Aid Intercept Act or to redirect a distribution to the New Mexico finance authority pursuant to an ordinance or a resolution passed by the county or municipality and a written agreement of the municipality or county and the New Mexico finance authority. Upon direction to decrease a distribution or notice to redirect a distribution to a municipality or county, the secretary shall decrease or redirect the next designated distribution, and succeeding distributions as necessary, by the amount of the state distributions intercept authorized by the secretary of finance and administration pursuant to the State Aid Intercept Act or by the amount of the state distribution intercept authorized pursuant to an ordinance or a resolution passed by the county or municipality and a written agreement with the New Mexico finance authority. The secretary shall transfer the state distributions intercept amount to the municipal or county treasurer or other person designated by the secretary of finance and administration or to the New Mexico finance authority pursuant to written agreement to pay the debt service to avoid default on qualified local revenue bonds or meet other local revenue bond, loan or other debt obligations of the municipality or county to the New Mexico finance authority."
Section 5. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] LOCATION OF USE.--
A. For compensating tax and local option compensating tax purposes, use of property occurs in the jurisdiction in which:
(1) the buyer's place of business is located if the buyer is engaging in business in New Mexico and uses the property in furtherance of that business;
(2) the buyer's principal office is located if the buyer is the state or a local government or an agency or instrumentality of the state or a local government; or
(3) the buyer's residence is located if the buyer is not engaging in business in New Mexico or does not use the property in furtherance of business.
B. The department shall promulgate regulations to determine where use will be attributed when the buyer has more than one business location or residence in New Mexico."
Section 6. Section 7-1-6.39 NMSA 1978 (being Laws 1995, Chapter 6, Section 9) 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 [eleven and eleven-hundredths] eight and seven-tenths 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 7. Section 7-2-5.2 NMSA 1978 (being Laws 1985, Chapter 114, Section 1, as amended) is amended to read:
"7-2-5.2. EXEMPTION--INCOME OF PERSONS SIXTY-FIVE AND OLDER OR BLIND.--Any individual sixty-five years of age or older or who, for federal income tax purposes, is blind may claim an exemption in an amount specified in Subsections A through C of this section not to exceed eight thousand dollars ($8,000) of income includable except for this exemption in net income. Individuals having income both within and without this state shall apportion this exemption in accordance with regulations of the secretary.
A. For married individuals filing separate returns, for any taxable year beginning on or after January 1, 1987:
The maximum amount of
If adjusted exemption allowable under
gross income is: this section shall be:
Not over $15,000 $8,000
Over $15,000 but not over $16,500 $7,000
Over $16,500 but not over $18,000 $6,000
Over $18,000 but not over $19,500 $5,000
Over $19,500 but not over $21,000 $4,000
Over $21,000 but not over $22,500 $3,000
Over $22,500 [but not over $24,000 $2,000] $2,500
[Over $24,000 but not over $25,500 $1,000
Over $25,500 0].
B. For heads of household, surviving spouses and married individuals filing joint returns, for any taxable year beginning on or after January 1, 1987:
The maximum amount of
If adjusted exemption allowable under
gross income is: this section shall be:
Not over $30,000 $8,000
Over $30,000 but not over $33,000 $7,000
Over $33,000 but not over $36,000 $6,000
Over $36,000 but not over $39,000 $5,000
Over $39,000 but not over $42,000 $4,000
Over $42,000 but not over $45,000 $3,000
Over $45,000 [but not over $48,000 $2,000] $2,500
[Over $48,000 but not over $51,000 $1,000
Over $51,000 0].
C. For single individuals, for any taxable year beginning on or after January 1, 1987:
The maximum amount of
If adjusted exemption allowable under
gross income is: this section shall be:
Not over $18,000 $8,000
Over $18,000 but not over $19,500 $7,000
Over $19,500 but not over $21,000 $6,000
Over $21,000 but not over $22,500 $5,000
Over $22,500 but not over $24,000 $4,000
Over $24,000 but not over $25,500 $3,000
Over $25,500 [but not over $27,000 $2,000] $2,500
[Over $27,000 but not over $28,500 $1,000
Over $28,500 0]."
Section 8. Section 7-2-7 NMSA 1978 (being Laws 2003, Chapter 2, Section 3), which is to become effective January 1, 2004, is amended to read:
"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning in 2004:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $4,000 1.7% of taxable income
Over $ 4,000 but not over $ 8,000 $ 68.00 plus 3.2% of
excess over $ 4,000
Over $ 8,000 but not over $ 12,000 $ 196 plus 4.7% of
excess over $ 8,000
Over $ 12,000 but not over $ 20,000 $ 384 plus 6.0% of
excess over $ 12,000
Over $ 20,000 $ 864 plus 6.8% of
excess over $ 20,000.
B. For heads of household, surviving spouses and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 1.7% of taxable income
Over $ 8,000 but not over $ 16,000 $ 136 plus 3.2% of
excess over $ 8,000
Over $ 16,000 but not over $ 24,000 $ 392 plus 4.7% of excess over $ 16,000
Over $ 24,000 but not over $ 40,000 $ 768 plus 6.0% of excess over $ 24,000
Over $ 40,000 $ 1,728 plus 6.8% of
excess over $ 40,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 1.7% of taxable income
Over $ 5,500 but not over $ 11,000 $ 93.50 plus 3.2% of
excess over $ 5,500
Over $ 11,000 but not over $ 16,000 $ 269.50 plus 4.7% of
excess over $ 11,000
Over $ 16,000 but not over $ 26,000 $ 504.50 plus 6.0% of
excess over $ 16,000
Over $ 26,000 $1,104.50 plus 6.8% of
excess over $ 26,000.
[D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 1.7% of taxable income
Over $ 7,000 but not over $ 14,000 $ 119 plus 3.2% of
excess over $ 7,000
Over $ 14,000 but not over $ 20,000 $ 343 plus 4.7% of
excess over $ 14,000
Over $ 20,000 but not over $ 33,000 $ 625 plus 6.0% of
excess over $ 20,000
Over $ 33,000 $1,405 plus 6.8% of
excess over $ 33,000.
E.] D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 9. Section 7-2-7 NMSA 1978 (being Laws 2003, Chapter 2, Section 4), which is to become effective January 1, 2005, is amended to read:
"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning in 2005:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $4,000 1.7% of taxable income
Over $ 4,000 but not over $ 8,000 $ 68.00 plus 3.2% of
excess over $ 4,000
Over $ 8,000 but not over $ 12,000 $ 196 plus 4.7% of
excess over $ 8,000
Over $ 12,000 $ 384 plus 6.0% of excess over $ 12,000.
B. For heads of household, surviving spouses and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 1.7% of taxable income
Over $ 8,000 but not over $ 16,000 $ 136 plus 3.2% of excess over $ 8,000
Over $ 16,000 but not over $ 24,000 $ 392 plus 4.7% of excess over $ 16,000
Over $ 24,000 $ 768 plus 6.0% of excess over $ 24,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 1.7% of taxable income
Over $ 5,500 but not over $ 11,000 $ 93.50 plus 3.2% of excess over $ 5,500
Over $ 11,000 but not over $ 16,000 $ 269.50 plus 4.7% of excess over $ 11,000
Over $ 16,000 $ 504.50 plus 6.0% of excess over $ 16,000.
[D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 1.7% of taxable income
Over $ 7,000 but not over $ 14,000 $ 119 plus 3.2% of
excess over $ 7,000
Over $ 14,000 but not over $ 20,000 $ 343 plus 4.7% of
excess over $ 14,000
Over $ 20,000 $ 625 plus 6.0% of
excess over $ 20,000.
E.] D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 10. Section 7-2-7 NMSA 1978 (being Laws 2003, Chapter 2, Section 5), which is to become effective January 1, 2006, is amended to read:
"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning in 2006:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $4,000 1.7% of taxable income
Over $ 4,000 but not over $ 8,000 $ 68.00 plus 3.2% of
excess over $ 4,000
Over $ 8,000 but not over $ 12,000 $ 196 plus 4.7% of excess over $ 8,000
Over $ 12,000 $ 384 plus 5.3% of excess over $ 12,000.
B. For heads of household, surviving spouses and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 1.7% of taxable income
Over $ 8,000 but not over $ 16,000 $ 136 plus 3.2% of excess over $ 8,000
Over $ 16,000 but not over $ 24,000 $ 392 plus 4.7% of excess over $ 16,000
Over $ 24,000 $ 768 plus 5.3% of excess over $ 24,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 1.7% of taxable income
Over $ 5,500 but not over $ 11,000 $ 93.50 plus 3.2% of excess over $ 5,500
Over $ 11,000 but not over $ 16,000 $ 269.50 plus 4.7% of excess over $ 11,000
Over $ 16,000 $ 504.50 plus 5.3% of excess over $ 16,000.
[D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 1.7% of taxable income
Over $ 7,000 but not over $ 14,000 $ 119 plus 3.2% of
excess over $ 7,000
Over $ 14,000 but not over $ 20,000 $ 343 plus 4.7% of
excess over $ 14,000
Over $ 20,000 $ 625 plus 5.3% of
excess over $ 20,000.
E.] D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 11. Section 7-2-7 NMSA 1978 (being Laws 2003, Chapter 2, Section 6), which is to become effective January 1, 2007, is amended to read:
"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, 2007:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $4,000 1.7% of taxable income
Over $ 4,000 but not over $ 8,000 $ 68.00 plus 3.2% of excess over $ 4,000
Over $ 8,000 but not over $ 12,000 $ 196 plus 4.7% of excess over $ 8,000
Over $ 12,000 $ 384 plus 4.9% of excess over $ 12,000.
B. For heads of household, surviving spouses and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 1.7% of taxable income
Over $ 8,000 but not over $ 16,000 $ 136 plus 3.2% of excess over $ 8,000
Over $ 16,000 but not over $ 24,000 $ 392 plus 4.7% of excess over $ 16,000
Over $ 24,000 $ 768 plus 4.9% of excess over $ 24,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 1.7% of taxable income
Over $ 5,500 but not over $ 11,000 $ 93.50 plus 3.2% of excess over $ 5,500
Over $ 11,000 but not over $ 16,000 $ 269.50 plus 4.7% of excess over $ 11,000
Over $ 16,000 $ 504.50 plus 4.9% of excess over $ 16,000.
[D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 1.7% of taxable income
Over $ 7,000 but not over $ 14,000 $ 119 plus 3.2% of
excess over $ 7,000
Over $ 14,000 but not over $ 20,000 $ 343 plus 4.7% of
excess over $ 14,000
Over $ 20,000 $ 625 plus 4.9% of
excess over $ 20,000.
E.] D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 12. Section 7-2-14 NMSA 1978 (being Laws 1972, Chapter 20, Section 2, as amended) is amended to read:
"7-2-14. [LOW-INCOME COMPREHENSIVE TAX REBATE] FAMILY AND INDIVIDUAL REBATE.--
A. Except as otherwise provided in Subsection B of this section, any resident who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a tax rebate for a portion of state and local taxes to which the resident has been subject during the taxable year for which the return is filed. The tax rebate may be claimed even though the resident has no income taxable under the Income Tax Act. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax rebate that would have been allowed on a joint return.
B. No claim for the tax rebate provided in this section shall be filed by a resident who was an inmate of a public institution for more than six months during the taxable year for which the tax rebate could be claimed or who was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate could be claimed.
C. For the purposes of this section, the total number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of federal exemptions allowable for federal income tax purposes for each individual included in the return who is domiciled in New Mexico plus two additional exemptions for each individual domiciled in New Mexico included in the return who is sixty-five years of age or older plus one additional exemption for each individual domiciled in New Mexico included in the return who, for federal income tax purposes, is blind plus one exemption for each minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.
D. The tax rebate provided for in this section may be claimed in the amount shown in the following table:
Modified gross And the total number
income is: of exemptions is:
[ But Not 6 or
Over Over 1 2 3 4 5 More
$ 0 $ 500 $120 $160 $200 $240 $280 $320
500 1,000 135 195 250 310 350 415
1,000 1,500 135 195 250 310 350 435
1,500 2,000 135 195 250 310 350 450
2,000 2,500 135 195 250 310 350 450
2,500 3,000 135 195 250 310 350 450
3,000 3,500 135 195 250 310 350 450
3,500 4,000 135 195 250 310 355 450
4,000 4,500 135 195 250 310 355 450
4,500 5,000 125 190 240 305 355 450
5,000 5,500 115 175 230 295 355 430
5,500 6,000 105 155 210 260 315 410
6,000 7,000 90 130 170 220 275 370
7,000 8,000 80 115 145 180 225 295
8,000 9,000 70 105 135 170 195 240
9,000 10,000 65 95 115 145 175 205
10,000 11,000 60 80 100 130 155 185
11,000 12,000 55 70 90 110 135 160
12,000 13,000 50 65 85 100 115 140
13,000 14,000 50 65 85 100 115 140
14,000 15,000 45 60 75 90 105 120
15,000 16,000 40 55 70 85 95 110
16,000 17,000 35 50 65 80 85 105
17,000 18,000 30 45 60 70 80 95
18,000 19,000 25 35 50 60 70 80
19,000 20,000 20 30 40 50 60 65
20,000 21,000 15 25 30 40 50 55
21,000 22,000 10 20 25 35 40 45]
But Not 7 or
Over Over 1 2 3 4 5 6 More
$ 0 $1,000 $180 $281 $373 $460 $515 $605 $704
1,000 3,000 180 281 373 460 515 640 745
3,000 5,000 180 281 373 460 520 640 745
5,000 6,000 160 261 353 445 520 620 722
6,000 7,000 135 216 293 370 440 560 652
7,000 8,000 125 201 268 330 390 485 564
8,000 9,000 115 191 258 320 360 430 500
9,000 10,000 103 181 238 295 340 395 459
10,000 11,000 85 166 223 280 320 375 436
11,000 12,000 65 156 213 260 300 350 407
12,000 13,000 50 144 208 250 280 330 383
13,000 14,000 50 137 208 250 280 330 383
14,000 15,000 45 120 198 240 270 310 360
15,000 16,000 40 105 193 235 260 300 348
16,000 17,000 35 90 170 230 250 295 343
17,000 18,000 30 78 155 220 245 285 331
18,000 19,000 25 61 130 210 235 270 313
19,000 20,000 20 49 105 195 225 255 296
20,000 21,000 15 37 80 175 215 245 284
21,000 22,000 10 20 70 160 205 235 273
22,000 23,000 0 0 45 115 155 183 220
23,000 24,000 0 0 0 105 145 176 210
24,000 25,000 0 0 0 60 135 169 200
25,000 26,000 0 0 0 45 125 145 190
26,000 27,000 0 0 0 30 115 138 180
27,000 28,000 0 0 0 15 105 131 170
28,000 29,000 0 0 0 0 95 124 150
29,000 30,000 0 0 0 0 45 117 130
30,000 31,000 0 0 0 0 30 105 120
31,000 32,000 0 0 0 0 0 93 115
32,000 33,000 0 0 0 0 0 81 100
33,000 34,000 0 0 0 0 0 45 85
34,000 35,000 0 0 0 0 0 30 73
35,000 36,000 0 0 0 0 0 15 61
36,000 37,000 0 0 0 0 0 0 49
37,000 38,000 0 0 0 0 0 0 37
38,000 39,000 0 0 0 0 0 0 25.
E. If a taxpayer's modified gross income is zero, the taxpayer may claim a credit in the amount shown in the first row of the table appropriate for the taxpayer's number of exemptions.
F. The tax rebates provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the tax rebates exceed the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
G. For purposes of this section:
(1) "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code of 1986, as that section may be amended or renumbered, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident; and
(2) "modified gross income" means "modified gross income" as defined in Section 7-2-2 NMSA 1978 but also includes the value of food stamp program benefits."
Section 13. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] ADDITIONAL EXEMPTION AMOUNT.--
A. An individual may claim an additional exemption amount as specified in Subsections B, C and D of this section; provided that the additional exemption amount shall not exceed an amount equal to the number of federal exemptions multiplied by three thousand dollars ($3,000) of income includable, except for this exemption, in net income. Individuals having income both within and without this state shall apportion this exemption in accordance with regulations of the secretary.
B. For single individuals:
(1) if the number of federal exemptions is one, the additional exemption amount shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting eight thousand dollars ($8,000) from the adjusted gross income;
(2) if the number of federal exemptions is two, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting eleven thousand dollars ($11,000) from the adjusted gross income;
(3) if the number of federal exemptions is three, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting fourteen thousand dollars ($14,000) from the adjusted gross income;
(4) if the number of federal exemptions is four, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting seventeen thousand dollars ($17,000) from the adjusted gross income;
(5) if the number of federal exemptions is five, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting twenty thousand dollars ($20,000) from the adjusted gross income;
(6) if the number of federal exemptions is six, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting twenty-three thousand dollars ($23,000) from the adjusted gross income; and
(7) if the number of federal exemptions is seven or more, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting twenty-six thousand dollars ($26,000) from the adjusted gross income.
C. For heads of household, surviving spouses and married individuals filing joint returns:
(1) if the number of federal exemptions is one, the additional exemption amount shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting twelve thousand dollars ($12,000) from the adjusted gross income;
(2) if the number of federal exemptions is two, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting fifteen thousand dollars ($15,000) from the adjusted gross income;
(3) if the number of federal exemptions is three, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting eighteen thousand dollars ($18,000) from the adjusted gross income;
(4) if the number of federal exemptions is four, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting twenty-one thousand dollars ($21,000) from the adjusted gross income;
(5) if the number of federal exemptions is five, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting twenty-four thousand dollars ($24,000) from the adjusted gross income;
(6) if the number of federal exemptions is six, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting twenty-seven thousand dollars ($27,000) from the adjusted gross income; and
(7) if the number of federal exemptions is seven or more, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting thirty thousand dollars ($30,000) from the adjusted gross income.
D. For married individuals filing separate returns:
(1) if the number of federal exemptions is one, the additional exemption amount shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting six thousand dollars ($6,000) from the adjusted gross income;
(2) if the number of federal exemptions is two, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting seven thousand five hundred dollars ($7,500) from the adjusted gross income;
(3) if the number of federal exemptions is three, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting nine thousand dollars ($9,000) from the adjusted gross income;
(4) if the number of federal exemptions is four, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting ten thousand five hundred dollars ($10,500) from the adjusted gross income;
(5) if the number of federal exemptions is five, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting twelve thousand dollars ($12,000) from the adjusted gross income;
(6) if the number of federal exemptions is six, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting thirteen thousand five hundred dollars ($13,500) from the adjusted gross income; and
(7) if the number of federal exemptions is seven or more, the additional exemption amount for each federal exemption shall be three thousand dollars ($3,000) less fifteen percent of the amount obtained by subtracting fifteen thousand dollars ($15,000) from the adjusted gross income.
E. For the purposes of this section, "federal exemption" means an exemption allowable for federal income tax purposes for an individual included in the return who is domiciled in New Mexico.
F. In lieu of the computations required to determine the amount of the additional exemption provided by this section, the secretary may adopt regulations allowing the use of tables to determine the additional exemption amount. The tables may be established either by regulation or instruction but shall be computed substantially on the basis of the computations prescribed in this section."
Section 14. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] HIGH-WAGE JOBS TAX CREDIT.--
A. A taxpayer who is an eligible employer may apply for, and the taxation and revenue department may allow, a tax credit for each new high-wage economic-based job. The credit provided in this section may be referred to as the "high-wage jobs tax credit".
B. The high-wage jobs tax credit may be claimed and allowed in an amount equal to ten percent of the wages distributed to an eligible employee in a new high-wage economic-based job, but shall not exceed twelve thousand dollars ($12,000).
C. The high-wage jobs tax credit may be claimed by an eligible employer for each new high-wage economic-based job performed for the year in which the new high-wage economic-based job is created and for the three following qualifying periods.
D. A new high-wage economic-based job shall not be eligible for a credit pursuant to this section unless the eligible employer's total number of employees with new high-wage economic-based jobs on the last day of the qualifying period at the location at which the job is performed or based is at least one more than the number on the day prior to the date the job was created.
E. With respect to each new high-wage economic-based job for which an eligible employer seeks the high-wage jobs tax credit, the employer shall certify:
(1) the amount of wages paid to each eligible employee in a new high-wage economic-based job during each qualifying period;
(2) the number of weeks the position was occupied during the qualifying period;
(3) whether the new high-wage economic-based job was performed or based in:
(a) a municipality with a population of forty thousand or more according to the most recent federal decennial census;
(b) a municipality with a population of less than forty thousand according to the most recent federal decennial census; or
(c) the unincorporated area of a county; and
(4) the total number of employees employed by the employer at the job location on the day prior to the qualifying period and on the last day of the qualifying period.
F. To receive a high-wage jobs tax credit with respect to any qualifying period, an eligible employer shall apply to the taxation and revenue department on forms and in the manner prescribed by the department. The application shall include a certification made pursuant to Subsection E of this section.
G. The credit provided in this section may be deducted from the modified combined tax liability of a taxpayer. If the credit exceeds the modified combined tax liability of the taxpayer, the excess shall be refunded to the taxpayer.
H. As used in this section:
(1) "eligible employee" means an individual who is employed by an eligible employer and who is a resident of New Mexico; "eligible employee" does not include an individual who:
(a) bears any of the relationships described in Paragraphs (1) through (8) of 26 U.S.C. Section 152(a) to the employer or, if the employer is a corporation, to an individual who owns, directly or indirectly, more than fifty percent in value of the outstanding stock of the corporation or, if the employer is an entity other than a corporation, to an individual who owns, directly or indirectly, more than fifty percent of the capital and profits interest in the entity;
(b) if the employer is an estate or trust, is a grantor, beneficiary or fiduciary of the estate or trust or is an individual who bears any of the relationships described in Paragraphs (1) through (8) of 26 U.S.C. Section 152(a) to a grantor, beneficiary or fiduciary of the estate or trust;
(c) is a dependent, as that term is described in 26 U.S.C. Section 152(a)(9), of the employer or, if the taxpayer is a corporation, of an individual who owns, directly or indirectly, more than fifty percent in value of the outstanding stock of the corporation or, if the employer is an entity other than a corporation, of an individual who owns, directly or indirectly, more than fifty percent of the capital and profits interests in the entity or, if the employer is an estate or trust, of a grantor, beneficiary or fiduciary of the estate or trust; or
(d) is working or has worked as an employee or as an independent contractor for an entity that directly or indirectly owns stock in a corporation of the eligible employer or other interest of the eligible employer that represents fifty percent or more of the total voting power of that entity or has a value equal to fifty percent or more of the capital and profits interest in the entity;
(2) "eligible employer" means an employer that:
(a) made more than fifty percent of its sales to persons outside New Mexico during the most recent twelve months of the employer's modified combined tax liability reporting periods ending prior to claiming a high-wage jobs tax credit; and
(b) is eligible for training assistance pursuant to Section 21-19-7 NMSA 1978;
(3) "modified combined tax liability" means the total liability for the reporting period for the gross receipts tax imposed by Section 7-9-4 NMSA 1978 together with any tax collected at the same time and in the same manner as the gross receipts tax, including the compensating tax, withholding tax, interstate telecommunications gross receipts tax, surcharges imposed by Section 63-9D-5 NMSA 1978 and the surcharge imposed by Section 63-9F-11 NMSA 1978, minus the amount of any credit other than the high-wage jobs tax credit applied against any or all of these taxes or surcharges; but "modified combined tax liability" excludes all amounts collected with respect to local option gross receipts taxes;
(4) "new high-wage economic-based job" means a job created by an eligible employer on or after July 1, 2004 and prior to July 1, 2009 that is occupied for at least forty-eight weeks of a qualifying period by an eligible employee who is paid wages calculated for the qualifying period to be at least:
(a) forty thousand dollars ($40,000) if the job is performed or based in a municipality with a population of forty thousand or more according to the most recent federal decennial census; and
(b) twenty-eight thousand dollars ($28,000) if the job is performed or based in a municipality with a population of less than forty thousand according to the most recent federal decennial census or in the unincorporated area of a county;
(5) "qualifying period" means the period of twelve months beginning on the day an eligible employee begins working in a new high-wage economic-based job or the period of twelve months beginning on the anniversary of the day an eligible employee began working in a new high-wage economic-based job; and
(6) "wages" means wages as defined in Paragraphs (1), (2) and (3) of 26 U.S.C. Section 51(c)."
Section 15. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--RESEARCH AND DEVELOPMENT SMALL BUSINESSES.--
A. Receipts of a qualified research and development small business may be deducted from gross receipts to the extent that such receipts are directly related to the subject matter of its qualified research, as defined in Paragraph (3) of Subsection B of this section. The deduction provided by this section may be claimed only for a period ending thirty-five consecutive calendar months after the first calendar month for which the deduction is claimed by the taxpayer or by a person to whom the taxpayer is a successor pursuant to Section 7-1-61 NMSA 1978.
B. As used in this section:
(1) "qualified research and development small business" means a business, including a corporation, general partnership, limited partnership, limited liability company, sole proprietorship or other similar entity, that:
(a) employed no more than twenty-five employees on a full-time-equivalent basis in any prior calendar month;
(b) had total revenues of no more than ten million dollars ($10,000,000) in any prior fiscal year;
(c) did not in any prior calendar month have more than fifty percent of its voting securities or other equity interest with the right to designate or elect the board of directors or other governing body of the qualified business owned directly or indirectly by another business; and
(d) has made qualified research expenditures for the period of twelve calendar months ending with the month for which the deduction is sought of at least twenty percent of its total revenues for those twelve calendar months;
(2) "qualified research expenditure" means an expenditure in connection with qualified research, but does not include any expenditure on research funded by any grant, contract or similar mechanism by another person or governmental entity, and does not include any expenditure on property that is owned by a municipality or county in connection with an industrial revenue bond project or property for which the taxpayer has received any credit pursuant to the Capital Equipment Tax Credit Act, the Investment Credit Act or the Technology Jobs Tax Credit Act; and
(3) "qualified research" means research:
(a) that is undertaken for the purpose of discovering information that is technological in nature and the application of which is intended to be useful in the development of a new or improved business component of the taxpayer; and
(b) in which substantially all activities constitute elements of a process of experimentation related to new or improved function, performance, reliability or quality, but not related to style, taste, cosmetic or seasonal design factors."
Section 16. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] DEDUCTION--COMPENSATING TAX--RESEARCH AND DEVELOPMENT SMALL BUSINESSES.--
A. A qualified research and development small business may deduct the value of tangible personal property in computing the compensating tax due if the property is used in connection with a qualified research expenditure. The deduction provided by this section may be claimed only for a period ending thirty-five consecutive calendar months after the first calendar month for which the deduction is claimed.
B. As used in this section:
(1) "qualified research and development small business" means a business, including a corporation, general partnership, limited partnership, limited liability company, sole proprietorship or other similar entity, that:
(a) employed no more than twenty-five employees on a full-time-equivalent basis in any prior calendar month;
(b) had total revenues of no more than ten million dollars ($10,000,000) in any prior fiscal year;
(c) did not in any prior calendar month have more than fifty percent of its voting securities or other equity interest with the right to designate or elect the board of directors or other governing body of the qualified business owned directly or indirectly by another business; and
(d) has made qualified research expenditures for the period of twelve calendar months ending with the month for which the deduction is sought of at least twenty percent of its total revenues for those twelve calendar months;
(2) "qualified research expenditure" means an expenditure in connection with qualified research, but does not include any expenditure on research funded by any grant, contract or similar mechanism by another person or governmental entity, and does not include any expenditure on property that is owned by a municipality or county in connection with an industrial revenue bond project or property for which the taxpayer has received any credit pursuant to the Capital Equipment Tax Credit Act, the Investment Credit Act or the Technology Jobs Tax Credit Act; and
(3) "qualified research" means research:
(a) that is undertaken for the purpose of discovering information that is technological in nature and the application of which is intended to be useful in the development of a new or improved business component of the taxpayer; and
(b) in which substantially all activities constitute elements of a process of experimentation related to new or improved function, performance, reliability or quality, but not related to style, taste, cosmetic or seasonal design factors."
Section 17. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] EXEMPTION--GROSS RECEIPTS TAX--RECEIPTS FROM CERTAIN ATHLETIC CONTESTS, SPORTING EVENTS AND CONCERTS.--Exempted from the gross receipts tax are:
A. receipts from promoting professional contests subject to the regulatory fee imposed pursuant to Section 60-2A-23 NMSA 1978 and from exhibiting live professional contests subject to the supervisory fee imposed pursuant to Section 60-2A-26 NMSA 1978;
B. receipts from ticket sales or admission fees for professional contests as defined in Section 60-2A-2 NMSA 1978, auto racing and one-time sporting events; and
C. receipts from ticket sales or admission fees for a live concert held at a venue capable of accommodating at least two thousand five hundred persons."
Section 18. Section 7-9-3.2 NMSA 1978 (being Laws 1991, Chapter 8, Section 1, as amended) is amended to read:
"7-9-3.2. ADDITIONAL DEFINITION.--
A. As used in the Gross Receipts and Compensating Tax Act, "governmental gross receipts" means all receipts of the state or any agency, institution, instrumentality or political subdivision thereof from:
(1) the sale of tangible personal property other than water from facilities open to the general public;
(2) the performance of or admissions to recreational, athletic or entertainment services or events in facilities open to the general public;
(3) refuse collection, refuse disposal or both;
(4) sewage services; [and]
(5) the sale of water by a utility owned or operated by a county, municipality or other political subdivision of the state; and
(6) the renting of parking, docking or tie-down spaces or the granting of permission to park vehicles, tie down aircraft or dock boats.
"Governmental gross receipts" includes receipts from the sale of tangible personal property handled on consignment when sold from facilities open to the general public but excludes cash discounts taken and allowed, governmental gross receipts tax payable on transactions reportable for the period and any type of time-price differential.
B. As used in this section, "facilities open to the general public" does not include point of sale registers or electronic devices at a bookstore owned or operated by a public post-secondary educational institution when the registers or devices are utilized in the sale of textbooks or other materials required for courses at the institution to a student enrolled at the institution who displays a valid student identification card."
Section 19. Section 7-9-7 NMSA 1978 (being Laws 1966, Chapter 47, Section 7, as amended) is amended to read:
"7-9-7. IMPOSITION AND RATE OF TAX--DENOMINATION AS "COMPENSATING TAX".--
A. For the privilege of using tangible property in New Mexico, there is imposed on the person using the property an excise tax equal to five percent of the value of tangible property that was:
(1) manufactured by the person using the property in the state;
(2) acquired outside this state as the result of a transaction that would have been subject to the gross receipts tax had it occurred within this state; or
(3) acquired as the result of a transaction which was not initially subject to the compensating tax imposed by Paragraph (2) of this subsection or the gross receipts tax but which transaction, because of the buyer's subsequent use of the property, should have been subject to the compensating tax imposed by Paragraph (2) of this subsection or the gross receipts tax.
B. For the purpose of Subsection A of this section, value of tangible property shall be the adjusted basis of the property for federal income tax purposes determined as of the time of acquisition or introduction into this state or of conversion to use, whichever is later. If no adjusted basis for federal income tax purposes is established for the property, a reasonable value of the property shall be used.
C. For the privilege of using services rendered in New Mexico, there is imposed on the person using such services an excise tax equal to five percent of the value of the services at the time they were rendered. The services, to be taxable under this subsection, must have been rendered as the result of a transaction which was not initially subject to the gross receipts tax but which transaction, because of the buyer's subsequent use of the services, should have been subject to the gross receipts tax.
D. For the privilege of using services performed outside New Mexico, the product of which is initially used in New Mexico, there is imposed an excise tax equal to five percent of the value of the services at the time they were performed. The services, to be taxable under this subsection, must have been performed by a seller that has no nexus with this state in a transaction that would have been subject to the gross receipts tax had it occurred within this state. The department may promulgate rules to establish the value of the services performed and to apportion fairly the value when the services are performed or delivered simultaneously in more than one state.
[D.] E. The tax imposed by this section shall be referred to as the "compensating tax"."
Section 20. Section 7-9-7.1 NMSA 1978 (being Laws 1993, Chapter 45, Section 1, as amended) is amended to read:
"7-9-7.1. DEPARTMENT BARRED FROM TAKING COLLECTION ACTIONS WITH RESPECT TO CERTAIN COMPENSATING TAX LIABILITIES.--
A. The department shall take no action to enforce collection of compensating tax or any local option compensating tax due on purchases made by an individual if:
(1) the property is used only for nonbusiness purposes;
(2) the property is not a manufactured home; and
(3) the individual is not an agent for collection of compensating tax pursuant to Section 7-9-10 NMSA 1978.
B. The prohibition in Subsection A of this section does not prevent the department from enforcing collection of compensating tax or any local option compensating tax on purchases from persons who are not individuals, who are agents for collection pursuant to Section 7-9-10 NMSA 1978 or who use the property in the course of engaging in business in New Mexico or from enforcing collection of compensating tax or any local option compensating tax due on purchase of manufactured homes."
Section 21. Section 7-9-9 NMSA 1978 (being Laws 1966, Chapter 47, Section 9, as amended) is amended to read:
"7-9-9. LIABILITY OF USER FOR PAYMENT OF COMPENSATING TAX AND LOCAL OPTION COMPENSATING TAX.--Any person in New Mexico using property on the value of which compensating tax and local option compensating tax is payable but has not been paid is liable to the state for payment of the compensating tax and applicable local option compensating tax, but this liability is discharged if the buyer has paid the compensating tax and applicable local option compensating tax to the seller for payment over to the department."
Section 22. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] CREDIT--COMPENSATING TAX--MUNICIPAL COMPENSATING TAX PAID.--A credit shall be allowed for each reporting period against the compensating tax for an amount of the municipal compensating tax equal to:
A. one-half percent of the value of property for which the taxpayer is liable for that reporting period if the rate of the municipal compensating tax in effect at the time of the use was at least one-half percent; or
B. one-fourth percent of the value of property for which the taxpayer is liable for that reporting period if the rate of the municipal compensating tax in effect at the time of the use was one-fourth percent."
Section 23. Section 7-9-22 NMSA 1978 (being Laws 1969, Chapter 144, Section 15, as amended) is amended to read:
"7-9-22. EXEMPTION--GROSS RECEIPTS TAX--VEHICLES.--Exempted from the gross receipts tax are the receipts from selling vehicles on which a tax is imposed by the Motor Vehicle Excise Tax Act, [and on] vehicles subject to registration under Section 66-3-16 NMSA 1978 and vehicles exempt from the motor vehicle excise tax pursuant to Subsection F of Section 7-14-6 NMSA 1978."
Section 24. Section 7-9-23 NMSA 1978 (being Laws 1969, Chapter 144, Section 16, as amended) is amended to read:
"7-9-23. EXEMPTION--COMPENSATING TAX--VEHICLES.--Exempted from the compensating tax is the use of vehicles on which the tax imposed by the Motor Vehicle Excise Tax Act has been paid, [and on] the use of vehicles subject to registration under Section 66-3-16 NMSA 1978 and the use of vehicles exempt from the motor vehicle excise tax pursuant to Subsection F of Section 7-14-6 NMSA 1978."
Section 25. 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. The rate of the motor vehicle excise tax is [three] four 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. Notwithstanding the provisions of Subsection A of this section, the minimum amount of motor vehicle excise tax imposed pursuant to Subsection 7-14-3 shall be twenty dollars ($20.00)."
Section 26. Section 7-14-6 NMSA 1978 (being Laws 1988, Chapter 73, Section 16, as amended) is amended to read:
"7-14-6. EXEMPTIONS FROM TAX.--
A. Persons who acquire a vehicle out of state thirty or more days before establishing a domicile in this state are exempt from the tax if the vehicle was acquired for personal use.
B. Persons applying for a certificate of title for a vehicle registered in another state are exempt from the tax if they have previously registered and titled the vehicle in New Mexico and have owned the vehicle continuously since that time.
C. Certificates of title for all vehicles owned by this state or any political subdivision are exempt from the tax.
D. A vehicle subject to registration under Section 66-3-16 NMSA 1978 is exempt from the tax.
E. Persons who acquire vehicles for subsequent lease shall be exempt from the tax if:
(1) the person does not use the vehicle in any manner other than holding it for lease or sale or leasing or selling it in the ordinary course of business;
(2) the lease is for a term of more than six months;
(3) the receipts from the subsequent lease are subject to the gross receipts tax; and
(4) the vehicle does not have a gross vehicle weight of over twenty-six thousand pounds.
F. Vehicles that are manufactured to operate exclusively on alternative fuel or are gasoline-electric hybrid vehicles with a United States environmental protection agency fuel economy rating of at least twenty-two and one-half miles per gallon are eligible for a one-time exemption from the tax at the time of the issuance of the original certificate of title for the vehicle. For purposes of this subsection, "alternative fuel" means natural gas, liquefied petroleum gas, electricity, hydrogen, a fuel mixture containing not less than eighty-five percent ethanol or methanol, a fuel mixture containing not less than twenty percent vegetable oil or a water-phased hydrocarbon fuel emulsion consisting of a hydrocarbon base and water in an amount not less than twenty percent by volume of the total water-phased fuel emulsion."
Section 27. Section 7-14A-3.1 NMSA 1978 (being Laws 1993, Chapter 359, Section 1) is amended to read:
"7-14A-3.1. IMPOSITION AND RATE--LEASED VEHICLE SURCHARGE.--There is imposed a surcharge on the leasing of a vehicle to another person by a person engaging in business in New Mexico if the lease is subject to the leased vehicle gross receipts tax. The amount of this surcharge is [two dollars ($2.00)] four dollars ($4.00) for each day [each] the vehicle is leased by the person. The surcharge may be referred to as the "leased vehicle surcharge"."
Section 28. Section 7-15A-2 NMSA 1978 (being Laws 1988, Chapter 73, Section 29) is amended to read:
"7-15A-2. DEFINITIONS.--As used in the Weight Distance Tax Act:
A. "bus" means [every] a motor vehicle designed and used for the transportation of [persons] a person and [every] a motor vehicle, other than a taxicab, designed and used for the transportation of [persons] a person for compensation;
B. "declared gross weight" means the declared gross weight for purposes of the Motor Transportation Act;
C. "department" means the taxation and revenue department, the secretary of taxation and revenue or [any] an employee of that department exercising authority lawfully delegated to that employee by the secretary;
D. "gross vehicle weight" means the weight of a vehicle without load, plus the weight of [any] a load [thereon] upon the vehicle;
E. "motor vehicle" means [every] a vehicle [which] that is self-propelled and [every] a vehicle [which] that is propelled by electric power obtained from batteries or from overhead trolley wires, but not operated upon rails;
F. "person" means [any]:
(1) an individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate or other association; ["person" also means] and
(2) to the extent permitted by law, [any] a federal, state or other governmental unit or subdivision or an agency, department or instrumentality [thereof] of the federal, state or other governmental unit;
G. "registrant" means [any] a person who has registered the vehicle pursuant to the laws of this state or another state;
H. "secretary" means the secretary of taxation and revenue or the secretary's delegate;
I. "tax" means the weight distance tax imposed by the Weight Distance Tax Act; [and]
J. "vehicle" means [every] a device in, upon or by which [any] a person or property is or may be transported or drawn upon a highway, including [any] a frame, chassis or body of [any] a vehicle or motor vehicle, except [devices] a device moved by human power or used exclusively upon stationary rails or tracks; and
K. "weight distance tax identification permit" means an administrative certificate that is issued by the department and that identifies a specific vehicle as subject to the tax imposed pursuant to the Weight Distance Tax Act."
Section 29. Section 7-15A-6 NMSA 1978 (being Laws 1988, Chapter 73, Section 33) is amended to read:
"7-15A-6. TAX RATE FOR MOTOR VEHICLES OTHER THAN BUSES--REDUCTION OF RATE FOR ONE-WAY HAULS.--
A. For on-highway operations of motor vehicles other than buses, the weight distance tax shall be computed in accordance with the following schedule:
Declared Gross Weight Tax Rate
(Gross Vehicle Weight) (Mills per Mile)
26,000 to 28,000 [7.97] 11.32
28,001 to 30,000 [8.60] 12.22
30,001 to 32,000 [9.24] 13.13
32,001 to 34,000 [9.87] 14.02
34,001 to 36,000 [10.51] 14.93
36,001 to 38,000 [11.14] 15.82
38,001 to 40,000 [12.11] 17.20
40,001 to 42,000 [13.06] 18.55
42,001 to 44,000 [14.01] 19.90
44,001 to 46,000 [14.97] 21.26
46,001 to 48,000 [15.93] 22.63
48,001 to 50,000 [16.88] 23.98
50,001 to 52,000 [17.84] 25.34
52,001 to 54,000 [18.79] 26.69
54,001 to 56,000 [19.75] 28.05
56,001 to 58,000 [20.71] 29.42 58,001 to 60,000 [21.66] 30.77
60,001 to 62,000 [22.61] 32.12
62,001 to 64,000 [23.58] 33.49
64,001 to 66,000 [24.53] 34.84
66,001 to 68,000 [25.48] 36.19
68,001 to 70,000 [26.43] 37.54
70,001 to 72,000 [27.40] 38.92
72,001 to 74,000 [28.41] 40.36
74,001 to 76,000 [29.46] 41.85
76,001 to 78,000 [30.55] 43.39
78,001 and over [31.68] 45.00.
B. All motor vehicles for which the tax is computed under Subsection A of this section shall pay a tax [which] that is two-thirds of the tax computed under Subsection A of this section if:
(1) the motor vehicle is customarily used for one-way haul;
(2) forty-five percent or more of the mileage traveled by the motor vehicle for a registration year is mileage [which] that is traveled empty of all load; and
(3) the registrant, owner or operator of the vehicle attempting to qualify under this subsection has made a sworn application to the department to be classified under this subsection for a registration year and has given whatever information is required by the department to determine the eligibility of the vehicle to be classified under this subsection and the vehicle has been so classified."
Section 30. Section 7-15A-7 NMSA 1978 (being Laws 1988, Chapter 73, Section 34) is amended to read:
"7-15A-7. TAX RATE FOR BUSES.--For all buses, the weight distance tax shall be computed in accordance with the following schedule:
Declared Gross Weight Tax Rate
(Gross Vehicle Weight) (Mills per Mile)
26,000 to 28,000 [7.97] 11.32
28,001 to 30,000 [8.60] 12.22
30,001 to 32,000 [9.24] 13.13
32,001 to 34,000 [9.87] 14.02
34,001 to 36,000 [10.52] 14.93
36,001 to 38,000 [11.15] 15.82
38,001 to 40,000 [12.12] 17.20
40,001 to 42,000 [13.07] 18.55
42,001 to 44,000 [14.02] 19.90
44,001 to 46,000 [14.97] 21.26
46,001 to 48,000 [15.94] 22.63
48,001 to 50,000 [16.89] 23.98
50,001 to 52,000 [17.85] 25.34
52,001 to 54,000 [18.80] 26.69
54,001 and over [19.76] 28.05."
Section 31. A new section of the Weight Distance Tax Act is enacted to read:
"[NEW MATERIAL] WEIGHT DISTANCE TAX IDENTIFICATION PERMITS--SUSPENSION AND RENEWAL.--
A. An operator of a motor vehicle registered in this state and subject to the weight distance tax shall display a weight distance tax identification permit issued for that vehicle to an enforcement officer of the department of public safety upon demand of that employee and when the vehicle passes through a port of entry.
B. The department may suspend or decline to renew a weight distance tax identification permit for a motor vehicle if the owner or operator of the vehicle does not comply with the provisions of the Weight Distance Tax Act."
Section 32. A new section of the Weight Distance Tax Act is enacted to read:
"[NEW MATERIAL] WEIGHT DISTANCE TAX IDENTIFICATION PERMIT ADMINISTRATIVE FEE.--
A. A person that obtains a weight distance tax identification permit shall pay an administrative fee to the department for the reasonable and necessary expense that the department incurs for processing and issuing a weight distance tax identification permit. The fee shall be paid in addition to a weight distance tax, special fuel excise tax and other use fee imposed for the use of public highways of this state. The department shall determine the amount of the fee pursuant to regulation. The fee shall not exceed ten dollars ($10.00).
B. The department shall deposit to the weight distance tax identification permit administration fund all proceeds from administrative fees collected by the department pursuant to this section."
Section 33. A new section of the Weight Distance Tax Act is enacted to read:
"[NEW MATERIAL] WEIGHT DISTANCE TAX IDENTIFICATION PERMIT ADMINISTRATION FUND.--The "weight distance tax identification permit administration fund" is created in the state treasury. The purpose of the fund is to provide an account from which the department may pay the costs of issuing and administering weight distance tax identification permits. The fund shall consist of administrative fees collected pursuant to the Weight Distance Tax Act. Money in the fund shall be appropriated to the department to pay for the cost of issuing and administering weight distance tax identification permits. Disbursements from the fund shall be by warrant of the secretary of finance and administration upon vouchers signed by the secretary or the secretary's authorized representative. Money in the fund shall not revert to the general fund at the end of a fiscal year."
Section 34. Section 7-16A-3 NMSA 1978 (being Laws 1992, Chapter 51, Section 3, as amended) is amended to read:
"7-16A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS SPECIAL FUEL EXCISE TAX.--
A. For the privilege of receiving or using special fuel in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of special fuel received in New Mexico.
B. The tax imposed by Subsection A of this section shall be [eighteen cents ($.18)] twenty-three cents ($.23) per gallon of special fuel received or used in New Mexico.
C. The tax imposed by this section may be called the "special fuel excise tax"."
Section 35. Section 7-17-5 NMSA 1978 (being Laws 1993, Chapter 65, Section 8, as amended) is amended to read:
"7-17-5. IMPOSITION AND RATE OF LIQUOR EXCISE TAX.--There is imposed on [any] a wholesaler who sells alcoholic beverages on which the tax imposed by this section has not been paid an excise tax, to be referred to as the "liquor excise tax", at the following rates on alcoholic beverages sold:
A. on spirituous liquors, [one dollar sixty cents ($1.60)] three dollars eighty-six cents ($3.86) per liter;
B. on beer, except as provided in Subsection E of this section, [forty-one cents ($.41)] one dollar forty-eight cents ($1.48) per gallon;
C. on wine, except as provided in Subsections D and F of this section, [forty-five cents ($.45)] one dollar thirteen cents ($1.13) per liter;
D. on fortified wine, one dollar fifty cents ($1.50) per liter;
E. on beer manufactured or produced by a microbrewer and sold in this state, provided that proof is furnished to the department that the beer was manufactured or produced by a microbrewer, eight cents ($.08) per gallon;
F. on wine manufactured or produced by a small winer or winegrower and sold in this state, provided that proof is furnished to the department that the wine was manufactured or produced by a small winer or winegrower, ten cents ($.10) per liter on the first eighty thousand liters sold and twenty cents ($.20) per liter on all liters sold over eighty thousand liters but less than five hundred sixty thousand liters; and
G. on cider, forty-one cents ($.41) per gallon."
Section 36. Section 7-19-12 NMSA 1978 (being Laws 1979, Chapter 397, Section 3, as amended) is amended to read:
"7-19-12. AUTHORIZATION TO IMPOSE SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS TAX AND SUPPLEMENTAL MUNICIPAL COMPENSATING TAX--AUTHORIZATION FOR ISSUANCE OF SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS BONDS--ELECTION REQUIRED.--
A. The majority of the members elected to the governing body of a municipality may enact an ordinance imposing an excise tax on any person engaging in business in the municipality for the privilege of engaging in business in the municipality. This tax is to be referred to as the "supplemental municipal gross receipts tax". The rate of the tax shall not exceed one percent of the gross receipts of the person engaging in business and shall be imposed in one-fourth percent increments if less than one percent.
B. An ordinance imposing a tax authorized by Subsection A of this section shall also impose a tax for the privilege of using property in the municipality if the use or service is subject to the compensating tax. This tax shall be referred to as the "supplemental municipal compensating tax". The rate of the tax imposed pursuant to this subsection shall be the same as the rate of tax imposed pursuant to Subsection A of this section. If, at the time this 2003 act becomes effective, a municipality has in effect any amount of supplemental municipal gross receipts tax, a supplemental municipal compensating tax is hereby imposed at the same rate, effective on the effective date of this 2003 act.
[B.] C. The governing body of a municipality enacting an ordinance imposing the tax authorized in [Subsection A] Subsections A and B of this section shall submit the question of imposing such [tax] taxes and the question of the issuance of supplemental municipal gross receipts bonds in an amount not to exceed nine million dollars ($9,000,000), for which the revenue from the supplemental municipal gross receipts tax and supplemental municipal compensating tax is dedicated, to the qualified electors of the municipality at a regular or special election.
[C.] D. The questions referred to in Subsection [B] C of this section shall be submitted to a vote of the qualified electors of the municipality as two separate ballot questions, which shall be substantially in the following form:
(1) "Shall the municipality be authorized to issue supplemental municipal gross receipts bonds in an amount of not exceeding ____________________ dollars for the purpose of constructing and equipping and otherwise acquiring a municipal water supply system?
For __________ Against __________"; and
(2) "Shall the municipality impose an excise tax for the privilege of engaging in business in the municipality which shall be known as the "supplemental municipal gross receipts tax" and an excise tax on the use of property in the municipality which shall be known as the "supplemental municipal compensating tax", both of which shall be imposed at a rate of __________ percent [of the gross receipts of the person engaging in business], the proceeds of which are dedicated to the payment of supplemental municipal gross receipts bonds?
For __________ Against __________".
[D.] E. Only those voters who are registered electors who reside within the municipality shall be permitted to vote on these two questions. The procedures for conducting the election shall be substantially the same as the applicable provisions in Sections 3-30-1, 3-30-6 and 3-30-7 NMSA 1978 relating to municipal debt.
[E.] F. If at an election called pursuant to this section a majority of the voters voting on each of the two questions vote in the affirmative on each [such] question, [then] the ordinance imposing the supplemental municipal gross receipts tax and supplemental municipal compensating tax shall be approved. If at such election a majority of the voters voting on such questions fail to approve any of the questions, [then] the ordinance imposing the [tax] taxes shall be disapproved and the questions required to be submitted by Subsection [B] C of this section shall not be submitted to the voters for a period of one year from the date of the election.
[F.] G. Any ordinance enacted under the provisions of this section shall include an effective date of either July 1 or January 1, whichever date occurs first after the expiration of at least [five] three months from the date of the election. A certified copy of any ordinance imposing a supplemental municipal gross receipts tax and supplemental municipal compensating tax shall be mailed to the [division] department within five days after the ordinance is adopted by the approval by the electorate. Any ordinance repealing the imposition of a tax under the provisions of the Supplemental Municipal Gross Receipts Tax Act shall become effective on either July 1 or January 1, after the expiration of at least [five] three months from the date the ordinance is repealed by the governing body.
[G.] H. Nothing in this section is intended to or does alter the effectiveness or validity of any actions taken in accordance with Subsection G of Section 80 of Chapter 20 of Laws 1986."
Section 37. Section 7-19-13 NMSA 1978 (being Laws 1979, Chapter 397, Section 4) is amended to read:
"7-19-13. ORDINANCE [MUST] SHALL CONFORM TO CERTAIN PROVISIONS OF THE GROSS RECEIPTS AND COMPENSATING TAX ACT AND REQUIREMENTS OF THE [DIVISION] DEPARTMENT.--
A. Any ordinance imposing a supplemental municipal gross receipts tax and supplemental municipal compensating tax shall adopt by reference the same definitions and the same provisions relating to exemptions and deductions as are contained in the Gross Receipts and Compensating Tax Act then in effect and as it may be amended from time to time.
B. The governing body of any municipality imposing or increasing the supplemental municipal gross receipts tax [must] and supplemental municipal compensating tax shall adopt the language of the model ordinance furnished to the municipality by the [division] department for the portion of the ordinance relating to the tax."
Section 38. Section 7-19-15 NMSA 1978 (being Laws 1979, Chapter 397, Section 6, as amended) is amended to read:
"7-19-15. COLLECTION BY DEPARTMENT--TRANSFER OF PROCEEDS--DEDUCTIONS.--
A. The department shall collect the supplemental municipal gross receipts tax in the same manner and at the same time it collects the state gross receipts tax. The department shall collect the supplemental municipal compensating tax in the same manner and at the same time it collects the compensating tax.
B. The department shall withhold an administrative fee pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978. The department shall transfer to each municipality for which it is collecting a supplemental municipal gross receipts tax the amount of the tax collected less the administrative fee withheld and less any disbursements for tax credits, refunds and the payment of interest applicable to the supplemental municipal gross receipts tax. The department shall transfer to each municipality for which it is collecting a supplemental municipal compensating tax the amount of the tax collected less any disbursements for tax credits, refunds and payment of interest applicable to the supplemental municipal compensating tax. Transfer of the [tax] taxes to a municipality shall be made within the month following the month in which the [tax is] taxes are collected."
Section 39. Section 7-19-16 NMSA 1978 (being Laws 1979, Chapter 397, Section 7) is amended to read:
"7-19-16. INTERPRETATION OF ACT--ADMINISTRATION AND ENFORCEMENT OF [TAX] TAXES.--
A. The [division] department shall interpret the provisions of the Supplemental Municipal Gross Receipts Tax Act.
B. The [division] department shall administer and enforce the collection of the supplemental municipal gross receipts tax and the supplemental municipal compensating tax, and the Tax Administration Act applies to the administration and enforcement of the [tax] taxes."
Section 40. Section 7-19-18 NMSA 1978 (being Laws 1979, Chapter 397, Section 9, as amended) is amended to read:
"7-19-18. SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS TAX--SUPPLEMENTAL MUNICIPAL COMPENSATING TAX--USE OF PROCEEDS--RESTRICTION.--
A. The proceeds from the supplemental municipal gross receipts tax and supplemental municipal compensating tax shall be deposited in a special improvement account of the municipality and shall be used only for:
(1) the payment of the principal of, interest on, any prior redemption premiums due in connection with and other expenses related to the supplemental municipal gross receipts bonds issued pursuant to the Supplemental Municipal Gross Receipts Tax Act;
(2) the funding of any reserves and other accounts in connection with such bonds;
(3) refunding bonds; and
(4) to the extent not needed for those purposes, the improvement of the municipality's water system. B. When any issue of supplemental municipal gross receipts bonds is fully paid, the supplemental municipal gross receipts tax and supplemental municipal compensating tax shall cease to be imposed for that issue, but may continue to be imposed for bonds enacted and approved pursuant to Section 7-19-12 NMSA 1978 and thereafter issued, or for refunding bonds issued pursuant to Section [4 of this 1997 act] 7-19-17.1 NMSA 1978. Any money remaining in a special improvement account after the obligations for supplemental municipal gross receipts bonds and refunding bonds are fully paid may be transferred to any other fund of the municipality."
Section 41. A new section of the Municipal Local Option Gross Receipts Taxes Act is enacted to read:
"[NEW MATERIAL] MUNICIPAL LOCAL OPTION COMPENSATING TAXES.--
A. An ordinance imposing, increasing or repealing a local option gross receipts tax authorized by the Municipal Local Option Gross Receipts Taxes Act shall also impose, increase or repeal a tax for the privilege of using property in the municipality if the use of the property is subject to the compensating tax. The rate of the municipal tax on use imposed, increased or repealed shall be the same as the rate of the local option gross receipts tax imposed, increased or repealed.
B. If, at the time this 2003 act becomes effective, a municipality has in effect a local option gross receipts tax authorized by the Municipal Local Option Gross Receipts Taxes Act, a municipal tax on use is hereby imposed at the same rate, effective on the effective date of this 2003 act.
C. The municipal taxes on use authorized or imposed by this section may be referred to generally as "municipal local option compensating taxes". Each tax may be referred to individually by reference to the local option gross receipts tax with which it is associated."
Section 42. Section 7-19D-7 NMSA 1978 (being Laws 1993, Chapter 346, Section 7, as amended) is amended to read:
"7-19D-7. COLLECTION BY DEPARTMENT--TRANSFER OF
PROCEEDS--DEDUCTIONS.--
A. The department shall collect each local option gross receipts tax imposed pursuant to the provisions of the Municipal Local Option Gross Receipts Taxes Act in the same manner and at the same time it collects the state gross receipts tax. The department shall collect the municipal local option compensating taxes imposed pursuant to the provisions of the Municipal Local Option Gross Receipts Taxes Act in the same manner and at the same time it collects the compensating tax.
B. Except as provided in Subsection C of this section, the department shall withhold an administrative fee pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978. The department shall transfer to each municipality for which it is collecting a local option gross receipts tax pursuant to the provisions of the Municipal Local Option Gross Receipts Taxes Act the amount of each tax collected for that municipality, less the administrative fee withheld and less any disbursements for tax credits, refunds and the payment of interest applicable to the tax. The department shall transfer to each municipality for which it collects a municipal local option compensating tax pursuant to the provisions of the Municipal Local Option Gross Receipts Taxes Act the amount of each tax collected for that municipality, less any disbursements for tax credits, refunds and payment of interest applicable to the tax. The transfer to the municipality shall be made within the month following the month in which the tax is collected.
C. With respect to the municipal gross receipts tax imposed by a municipality pursuant to Section 7-19D-9 NMSA 1978, the department shall withhold the administrative fee pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978 only on that portion of the municipal gross receipts tax arising from a municipal gross receipts tax rate in excess of one-half [of one] percent."
Section 43. A new section of the Local Hospital Gross Receipts Tax Act is enacted to read:
"[NEW MATERIAL] MATCHING LOCAL HOSPITAL COMPENSATING TAX.--An ordinance imposing, increasing or repealing a local hospital gross receipts tax authorized by the Local Hospital Gross Receipts Tax Act shall also impose, increase or repeal a tax for the privilege of using property in the county if the use of the property is subject to the compensating tax. This tax may be referred to as the "local hospital compensating tax". The rate of the local hospital compensating tax imposed, increased or repealed shall be the same as the rate of local hospital gross receipts tax imposed, increased or repealed. If, at the time this 2003 act becomes effective, a county has in effect a local hospital gross receipts tax, a local hospital compensating tax is hereby imposed at the same rate, effective on the effective date of this 2003 act."
Section 44. Section 7-20C-6 NMSA 1978 (being Laws 1991, Chapter 176, Section 6, as amended) is amended to read:
"7-20C-6. COLLECTION BY DEPARTMENT--TRANSFER OF PROCEEDS--DEDUCTIONS.--
A. The department shall collect the local hospital gross receipts tax in the same manner and at the same time it collects the state gross receipts tax. The department shall collect the local hospital compensating tax in the same manner and at the same time it collects the compensating tax.
B. The department shall withhold an administrative fee pursuant to Section 7-1-6.41 NMSA 1978. Except as provided in Subsection C of this section, the department shall transfer to each county for which it is collecting such tax the amount of the tax collected less the administrative fee withheld and less any disbursements for tax credits, refunds and the payment of interest applicable to the tax. The department shall transfer to each county for which it is collecting the local hospital compensating tax the amount of the tax collected less any disbursements for tax credits, refunds and the payment of interest applicable to the tax. Transfer [of the tax] to a county shall be made within the month following the month in which the tax is collected.
C. In lieu of a transfer pursuant to Subsection B of this section to a class B county with a population, as shown in the last federal decennial census, of more than twenty-five thousand and a net taxable value in the 2002 property tax year of less than two hundred million dollars ($200,000,000), the department shall make the transfer to the largest municipality in that county for the purpose of maintaining and operating a hospital."
Section 45. A new section of the County Local Option Gross Receipts Taxes Act is enacted to read:
"[NEW MATERIAL] MATCHING LOCAL OPTION COMPENSATING TAX.--
A. An ordinance imposing, increasing or repealing a local option gross receipts tax authorized by the County Local Option Gross Receipts Taxes Act to be imposed on a county-wide basis shall also impose, increase or repeal a tax for the privilege of using property in the county if the use of the property is subject to the compensating tax. The rate of county tax on use imposed, increased or repealed shall be the same as the rate of the local option gross receipts tax imposed, increased or repealed.
B. An ordinance imposing, increasing or repealing a local option gross receipts tax authorized by the County Local Option Gross Receipts Taxes Act to be imposed only in the county area shall also impose, increase or repeal a tax for the privilege of using property in the county area if the use of the property is subject to the compensating tax and if the department is not prohibited pursuant to Section 7-9-7.1 NMSA 1978 from collecting the compensating tax on the use. The rate of county area tax on use imposed, increased or repealed shall be the same as the rate of the local option gross receipts tax imposed, increased or repealed.
C. If, at the time this 2003 act becomes effective, a county has in effect a local option gross receipts tax authorized to be imposed on a county-wide basis, a county tax on use of property in the county is hereby imposed at the same rate, effective on the effective date of this 2003 act. If, at the time this 2003 act becomes effective, a county has in effect a local option gross receipts tax authorized to be imposed only in the county area, a county tax on use of property in the county area is hereby imposed at the same rate, effective on the effective date of this 2003 act.
D. The county taxes on use authorized or imposed by this section may be referred to generally as "county local option compensating taxes". Each tax may be referred to individually by reference to the local option gross receipts tax with which it is associated."
Section 46. Section 7-20E-7 NMSA 1978 (being Laws 1993, Chapter 354, Section 7, as amended) is amended to read:
"7-20E-7. COLLECTION BY DEPARTMENT--TRANSFER OF
PROCEEDS--DEDUCTIONS.--
A. The department shall collect each county local option gross receipts tax imposed pursuant to the provisions of the County Local Option Gross Receipts Taxes Act in the same manner and at the same time it collects the state gross receipts tax. The department shall collect each county local option compensating tax imposed pursuant to the provisions of the County Local Option Gross Receipts Taxes Act in the same manner and at the same time it collects the compensating tax.
B. The department shall withhold an administrative fee pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978. The department shall transfer to each county for which it is collecting a county local option gross receipts tax pursuant to the provisions of the County Local Option Gross Receipts Taxes Act the amount of each county local option gross receipts tax collected for that county, less the administrative fee withheld and less any disbursements for tax credits, refunds and the payment of interest applicable to the tax. The department shall transfer to each county for which it is collecting a county local option compensating tax pursuant to the provisions of the County Local Option Gross Receipts Taxes Act the amount of each local option compensating tax collected for that county, less any disbursements for tax credits, refunds and the payment of interest applicable to the tax. The transfer to the county shall be made within the month following the month in which the tax is collected."
Section 47. Section 7-20F-3 NMSA 1978 (being Laws 1993, Chapter 303, Section 3, as amended) is amended to read:
"7-20F-3. COUNTY CORRECTIONAL FACILITY GROSS RECEIPTS TAX--COUNTY CORRECTIONAL FACILITY COMPENSATING TAX--AUTHORITY TO IMPOSE--RATE--ORDINANCE REQUIREMENTS--REFERENDUM.--
A. The majority of the members elected to the county board may enact an ordinance imposing on a county-wide basis an excise tax not to exceed a rate of one-eighth [of one] percent of the gross receipts of any person engaging in business in the county, including all municipalities within the county; provided that the voters of:
(1) a class A county described in Paragraph (1) of Subsection A of Section 7-20F-2 NMSA 1978 or a class B county described in Paragraph (2) of Subsection A of Section 7-20F-2 NMSA 1978 have approved the issuance of general obligation bonds of the county sufficient to pay at least one-half of the costs of the construction and equipping of the new county judicial-correctional facility for which the county correctional facility gross receipts tax revenue is dedicated; or
(2) a class B county described in Paragraph (3) of Subsection A of Section 7-20F-2 NMSA 1978 have approved the issuance of bonds by the New Mexico finance authority sufficient to pay at least one-half of the costs of designing, constructing, equipping, furnishing and otherwise improving the new county correctional facility for which the county correctional facility gross receipts tax revenue is dedicated.
B. The tax imposed pursuant to Subsection A of this section may be referred to as the "county correctional facility gross receipts tax". The county correctional facility gross receipts tax shall be imposed only once for the period necessary for payment of the principal and interest on revenue bonds issued pursuant to the County Correctional Facility Gross Receipts Tax Act, but the period shall not exceed ten years from the effective date of the ordinance imposing the tax.
C. An ordinance imposing a county correctional facility gross receipts tax shall also impose a tax on the use of property in the county if the use of the property is subject to the compensating tax. This tax may be referred to as the "county correctional facility compensating tax". The rate of the county correctional facility compensating tax imposed shall be the same as the rate of county correctional facility gross receipts tax imposed. If, at the time this 2003 act becomes effective, a county has in effect a county correctional facility gross receipts tax, a county correctional facility compensating tax is hereby imposed at the same rate, effective on the effective date of this 2003 act.
[C.] D. Any ordinance imposing a county correctional facility gross receipts tax and county correctional facility compensating tax pursuant to this section shall:
(1) impose the tax in any number of increments of one-sixteenth [of one] percent not to exceed an aggregate amount of one-eighth [of one] percent; provided that the rate of the two taxes is the same;
(2) specify that the imposition of the tax will begin on either July 1 or January 1, whichever occurs first after the expiration of at least three months from the date that the department is notified personally or by mail by the county that imposition of the county correctional facility gross receipts tax and county correctional facility compensating tax has been approved by a majority of the registered voters in the county voting on the question; and
(3) dedicate the revenue from the county correctional facility gross receipts tax and county correctional facility compensating tax for the purpose of constructing, purchasing, furnishing, equipping, rehabilitating, expanding or improving a judicial-correctional or a county correctional facility or the grounds of a judicial-correctional or county correctional facility, including [but not limited to] acquiring and improving parking lots, landscaping or any combination of the foregoing or to payment of principal and interest on revenue bonds or refunding bonds issued pursuant to the provisions of the County Correctional Facility Gross Receipts Tax Act.
[D.] E. An ordinance imposing a county correctional facility gross receipts tax and county correctional facility compensating tax pursuant to this section shall not become effective until after an election is held and a simple majority of the qualified electors of the county voting in the election votes in favor of imposing the tax.
[E.] F. The [governing body] county board shall adopt a resolution calling for an election within seventy-five days of the date the ordinance is adopted on the question of imposing the [tax] taxes and:
(1) in a class A county described in Paragraph (1) of Subsection A of Section 7-20F-2 NMSA 1978 or a class B county described in Paragraph (2) of Subsection A of Section 7-20F-2 NMSA 1978, if a property tax at a rate necessary to comply with the provisions of Subsection A of this section has not been approved by the voters of the county, the question submitted to the voters shall be the question of imposing a county correctional facility gross receipts tax, a county correctional facility compensating tax and a property tax at a rate necessary for the issuance of general obligation bonds of the county sufficient to comply with the provisions of the County Correctional Facility Gross Receipts Tax Act; or
(2) in a class B county described in Paragraph (3) of Subsection A of Section 7-20F-2 NMSA 1978, the question to be submitted to the voters is "Shall a county correctional facility gross receipts tax and a county correctional facility compensating tax be imposed to repay bonds that will be issued by the New Mexico finance authority in an amount sufficient to pay at least one-half of the costs of designing, constructing, equipping, furnishing and otherwise improving the new county correctional facility?".
[F.] G. The question shall be submitted to the voters at any general election or special election called for that purpose by the county board.
[G.] H. The election upon the question shall be called, held, conducted and canvassed in substantially the same manner as may be provided by law for general elections. [H.] I. If the question of imposing the county correctional facility gross receipts tax and a property tax, if the question includes a property tax, fails, the board shall not again propose imposition of a county correctional facility gross receipts tax for a period of one year after the election.
[I.] J. Revenue produced by the imposition of a county correctional facility gross receipts tax and a county correctional facility compensating tax that is in excess of the annual principal and interest due on bonds secured by a pledge of the county correctional facility gross receipts tax and the county correctional facility compensating tax may be accumulated in a debt service reserve account until an amount equal to the maximum amount permitted pursuant to the provisions of the United States treasury regulations is accumulated in the debt service reserve account. After the debt service reserve account requirements have been met, the excess revenue shall be accumulated in an extraordinary mandatory redemption fund and annually used to redeem the bonds prior to their stated maturity date.
[J.] K. When all outstanding bonds have been paid, whether from the debt service reserve, the redemption fund or maturity, the ordinance shall be repealed if the [county correctional facility gross receipts tax] revenue from the county correctional facility gross receipts tax and county correctional facility compensating tax is no longer required for the purposes for which it may be used pursuant to the provisions of the County Correctional Facility Gross Receipts Tax Act.
[K.] L. The repeal of an ordinance imposing a county correctional facility gross receipts tax and a county correctional facility compensating tax shall state that the repeal shall be effective on January 1 or July 1, whichever occurs first following the date the department is notified personally or by mail by the county of the repeal."
Section 48. Section 7-20F-5 NMSA 1978 (being Laws 1993, Chapter 303, Section 5) is amended to read:
"7-20F-5. COLLECTION BY DEPARTMENT--TRANSFER OF
PROCEEDS--DEDUCTIONS.--
A. The department shall collect the county correctional facility gross receipts tax in the same manner and at the same time it collects the state gross receipts tax. The department shall collect the county correctional facility compensating tax in the same manner and at the same time it collects the compensating tax.
B. The department shall remit to each county for which it is collecting a county correctional facility gross receipts tax and a county correctional facility compensating tax the amount of the [tax] taxes collected, less any disbursement for tax credits, refunds and the payment of interest applicable to the [county correctional facility gross receipts tax] taxes. Transfer [of the tax] to a county shall be made within the month following the month in which the [tax is] taxes are collected."
Section 49. Section 7-20F-7 NMSA 1978 (being Laws 1993, Chapter 303, Section 7) is amended to read:
"7-20F-7. REVENUE BONDS--AUTHORITY TO ISSUE--ORDINANCE AUTHORIZING ISSUE--PLEDGE OF REVENUE.--
A. In addition to any other law authorizing a county to issue revenue bonds, a county may issue revenue bonds pursuant to the County Correctional Facility Gross Receipts Tax Act for the purposes specified in that act. Revenue bonds issued pursuant to the County Correctional Facility Gross Receipts Tax Act may be referred to as "county correctional facility gross receipts tax revenue bonds".
B. A county board, by majority vote, may adopt an ordinance providing for issuance of revenue bonds pursuant to the provisions of the County Correctional Facility Gross Receipts Tax Act, the principal and interest of which shall be paid from the revenue derived by the county from the county correctional facility gross receipts tax, the county correctional facility compensating tax and any other revenue that the county may dedicate to the payment of the revenue bonds.
C. Revenue bonds or refunding revenue bonds issued as authorized pursuant to the County Correctional Facility Gross Receipts Tax Act are:
(1) not general obligations of the county; and
(2) collectible only from the county correctional facility gross receipts tax, the county correctional facility compensating tax and, if authorized, other properly pledged revenues, and each bond shall be payable solely from the properly pledged revenues and the bondholders shall not look to any other county fund for the payment of the interest and principal of the bonds."
Section 50. Section 60-2A-23 NMSA 1978 (being Laws 1980, Chapter 90, Section 23, as amended) is amended to read:
"60-2A-23. [PRIVILEGE TAX] REGULATORY FEES ON PROMOTIONS.--
A. In addition to any other taxes or fees provided by law, there is imposed upon every promoter for the privilege of promoting a professional [contests] contest a [tax at the rate of] regulatory fee in an amount determined pursuant to the rules of the commission to be sufficient to cover the costs of regulating the contest; provided that the fee may not exceed four percent of the total gross receipts of any professional contest conducted live in New Mexico.
B. The commission shall adopt rules and regulations for the administration, collection and enforcement of the [tax] fee imposed [in] pursuant to this section.
C. As used in this section, "total gross receipts of any professional contest" includes:
(1) the gross price charged for the sale, lease or other exploitation of broadcasting, television or motion picture rights of [such] the professional contest without any deductions for commissions, brokerage fees, distribution fees, advertising or other expenses or charges;
(2) the face value of all tickets sold and complimentary tickets issued; and
(3) any sums received as consideration for holding a professional contest at a particular location."
Section 51. Section 60-2A-24 NMSA 1978 (being Laws 1980, Chapter 90, Section 24) is amended to read:
"60-2A-24. ATHLETIC COMMISSION FUND.--The proceeds of the [privilege tax] regulatory fee on promotions and of the [privilege tax] supervisory fee on closed-circuit television or motion pictures, together with any license fees or other fees authorized [under] pursuant to the Professional Athletic Competition Act, shall be deposited with the state treasurer to the credit of the "athletic commission fund", which is hereby created. Expenditures from the athletic commission fund shall only be made on vouchers issued and signed by the person designated by the commission upon warrants drawn by the department of finance and administration in accordance with the budget approved by the department of finance and administration."
Section 52. Section 60-2A-25 NMSA 1978 (being Laws 1980, Chapter 90, Section 25) is amended to read:
"60-2A-25. TIME OF PAYMENT OF [PRIVILEGE TAX] REGULATORY FEE.--
A. Any person upon whom the [privilege tax] regulatory fee is imposed [by] pursuant to Section [23 of the Professional Athletic Competition Act] 60-2A-23 NMSA 1978 shall, within seventy-two hours after the completion of any professional contest for which an admission fee is charged and received or a contribution is requested and received, furnish to the commission a written report on forms prescribed by the commission showing:
(1) the number of tickets sold and issued or sold or issued for [such] the professional contest;
(2) the amount of the gross receipts or value thereof;
(3) the amount of gross receipts derived from the sale, lease or other exploitation of broadcasting, motion picture or television rights of [such] the professional contest, [and] without any deductions for commissions, brokerage fees, distribution fees, advertising or any other expenses or charges; and
(4) such other matters as the commission may prescribe.
B. The commission or any of its authorized employees may inspect the books, ticket stubs or any other data necessary for the proper enforcement of the [privilege tax] regulatory fee and supervisory fee imposed [in] pursuant to the Professional Athletic Competition Act."
Section 53. Section 60-2A-26 NMSA 1978 (being Laws 1980, Chapter 90, Section 26, as amended) is amended to read:
"60-2A-26. [PRIVILEGE TAX] SUPERVISORY FEE ON CLOSED-CIRCUIT TELECASTS OR MOTION PICTURES--REPORT TO COMMISSION.--
A. Any person who charges and receives an admission fee for exhibiting any live professional contest on a closed-circuit telecast or motion picture shall, within seventy-two hours after the event, furnish to the commission a verified written report on a form prescribed by the commission showing the number of tickets sold and issued or sold or issued and the gross receipts for the exhibition without any deductions.
B. There is imposed a [tax] supervisory fee upon the privilege of exhibiting for an admission fee any live professional contest [except a live professional boxing contest held in New Mexico between the effective date of this 1997 act and July 1, 1999] on a closed-circuit telecast or motion picture. [The rate of the tax imposed is] A supervisory fee is imposed in an amount determined pursuant to the rules of the commission to be sufficient to cover the costs of supervising the exhibition; provided that the fee may not exceed five percent of the gross receipts derived from the exhibition.
C. The [privilege tax] fee imposed [in] pursuant to this section shall be administered, collected, enforced and the proceeds deposited as provided in Section 60-2A-24 NMSA 1978."
Section 54. Section 60-2A-27 NMSA 1978 (being Laws 1980, Chapter 90, Section 27) is amended to read:
"60-2A-27. PENALTY--NONPAYMENT OF FEE.--Any person who willfully attempts to evade or defeat any [tax] regulatory or supervisory fee or the payment thereof imposed [by] pursuant to the Professional Athletic Competition Act is guilty of a fourth degree felony."
Section 55. Section 60-2A-28 NMSA 1978 (being Laws 1980, Chapter 90, Section 28) is amended to read:
"60-2A-28. CIVIL PENALTY.--In the case of failure due to negligence or disregard of rules and regulations of the commission, but without intent to defraud, to pay when due any amount of [tax] regulatory or supervisory fee required to be paid by the Professional Athletic Competition Act, there shall be added to the amount two percent per month or a fraction [thereof] of a month from the date the tax was due or from the date the report was required to be filed, not to exceed ten percent [thereof] of the fee due."
Section 56. Section 66-3-3.1 NMSA 1978 (being Laws 1992, Chapter 106, Section 7, as amended) is amended to read:
"66-3-3.1. TAX IDENTIFICATION CARD.--The department shall implement a system for identifying motor carriers subject to the weight distance tax and special fuel user permit requirements, including an identifying number for each motor carrier covered by the system. Annually, the department shall issue [a tax identification card in] one or more [copies to] original tax identification cards sufficient for the number of vehicles specified by each motor carrier who applies for a tax identification card; provided that [the card shall be renewed automatically each year as long as] the motor carrier continues to be subject to and in compliance with the weight distance tax and special fuel user permit requirements. The tax identification card shall contain the department's identifying number for the motor carrier and [such] other information [as] that the department deems necessary."
Section 57. Section 66-6-1 NMSA 1978 (being Laws 1978, Chapter 35, Section 336, as amended) is amended to read:
"66-6-1. MOTORCYCLES--REGISTRATION FEES.--
A. For the registration of motorcycles, the department shall collect the following fees for a twelve-month registration period:
(1) for a motorcycle having not more than two wheels in contact with the ground, [eleven dollars ($11.00)] fifteen dollars ($15.00); and
(2) for a motorcycle having three wheels in contact with the ground or having a sidecar, [eleven dollars ($11.00)] fifteen dollars ($15.00).
B. In addition to other fees required by this section, the department shall collect for each motorcycle an annual tire recycling fee of one dollar ($1.00) for a twelve-month registration period."
Section 58. Section 66-6-2 NMSA 1978 (being Laws 1978, Chapter 35, Section 337, as amended) is amended to read:
"66-6-2. PASSENGER VEHICLES--REGISTRATION FEES.--For the registration of motor vehicles other than motorcycles, trucks, buses and tractors, the division shall collect the following fees for each twelve-month registration period:
A. for a vehicle whose gross factory shipping weight is not more than two thousand pounds, [twenty dollars ($20.00)] twenty-seven dollars ($27.00); provided, however, that after five years of registration, calculated from the date when the vehicle was first registered in this or another state, the fee is [sixteen dollars ($16.00)] twenty-one dollars ($21.00);
B. for a vehicle whose gross factory shipping weight is more than two thousand but not more than three thousand pounds, [twenty-nine dollars ($29.00)] thirty-nine dollars ($39.00); provided, however, that after five years of registration, calculated from the date when the vehicle was first registered in this or another state, the fee is [twenty-three dollars ($23.00)] thirty-one dollars ($31.00);
C. for a vehicle whose gross factory shipping weight is more than three thousand pounds, [forty-two dollars ($42.00)] fifty-six dollars ($56.00); provided, however, that after five years of registration, calculated from the date when the vehicle was first registered in this or another state, the fee is [thirty-four dollars ($34.00)] forty-five dollars ($45.00); and
D. for a vehicle registered pursuant to the provisions of this section, a tire recycling fee of one dollar fifty cents ($1.50)."
Section 59. Section 66-6-3 NMSA 1978 (being Laws 1978, Chapter 35, Section 338, as amended) is amended to read:
"66-6-3. TRAILERS--REGISTRATION FEES.--
A. For the registration of freight trailers and utility trailers, the following fees shall be collected:
(1) for the permanent registration or reregistration of freight trailers, [ten dollars ($10.00)] thirteen dollars ($13.00);
(2) for the annual registration of each utility trailer not permanently registered, [five dollars ($5.00) plus one dollar ($1.00)] seven dollars ($7.00) plus one dollar ($1.00) for each one hundred pounds or major fraction thereof of actual empty weight over five hundred pounds actual empty weight; except that in the case of travel trailers, actual empty weight shall be one-half of the gross factory shipping weight or, if gross factory shipping weight is not available, then actual empty weight shall be one-half of actual gross vehicle weight; and
(3) for the permanent registration of utility trailers not used in commerce that have a gross vehicle weight of less than six thousand one pounds, [twenty-five dollars ($25.00) plus five dollars ($5.00)] thirty-three dollars ($33.00) plus seven dollars ($7.00) for each one hundred pounds or major fraction thereof of actual empty weight over five hundred pounds actual empty weight; except that in the case of travel trailers, actual empty weight shall be one-half of the gross factory shipping weight or, if gross factory shipping weight is not available, then actual empty weight shall be one-half of actual gross vehicle weight and for the reregistration of such utility trailers upon their sale or transfer, [five dollars ($5.00)] seven dollars ($7.00).
B. At the option of the owner of a fleet of fifty or more utility trailers wishing to register them in New Mexico, the [motor vehicle] division shall issue a registration and registration plate for each trailer in the fleet, the registration and registration plate to expire on the last day of the final month of a five-year period. Registrations and registration plates shall be issued for five years only if the owner of the trailers meets the following requirements:
(1) application is made on forms prescribed by the [motor vehicle] division and payment of the proper fee is made;
(2) upon the option of the director, presentation is made at the time of registration of a surety bond, certificate of deposit or of other financial security; and
(3) payment is made by the fleet owner of all registration fees due each year prior to the expiration date. If such fees are not paid, all registrations and registration plates in the fleet shall be canceled."
Section 60. Section 66-6-4 NMSA 1978 (being Laws 1978, Chapter 35, Section 339, as amended) is amended to read:
"66-6-4. REGISTRATION FEES--TRUCKS, TRUCK TRACTORS, ROAD TRACTORS AND BUSES.--
A. Within their respective jurisdictions, the motor vehicle division and the motor transportation division of the department of public safety shall charge registration fees for trucks, truck tractors, road tractors and buses, except as otherwise provided by law, according to the schedule of Subsection B of this section.
B. Declared Gross Weight Fee
001 to 4,000 [$ 30] $ 40
4,001 to 6,000 [41] 55
6,001 to 8,000 [52] 69
8,001 to 10,000 [63] 84
10,001 to 12,000 [74] 99
12,001 to 14,000 [85] 113
14,001 to 16,000 [96] 128
16,001 to 18,000 [107] 143
18,001 to 20,000 [118] 157
20,001 to 22,000 [129] 172
22,001 to 24,000 [140] 187
24,001 to 26,000 [151] 201
26,001 to 48,000 [88.50] 118
48,001 and over [129.50] 172.
C. All trucks whose declared gross weight or whose gross vehicle weight is less than twenty-six thousand pounds, after five years of registration, calculated from the date when the vehicle was first registered in this or another state, shall be charged registration fees at eighty percent of the rate set out in Subsection B of this section.
D. All trucks with a gross vehicle weight of more than twenty-six thousand pounds and all truck tractors and road tractors used to tow freight trailers shall be registered on the basis of combination gross vehicle weight.
E. All trucks with a gross vehicle weight of twenty-six thousand pounds or less shall be registered on the basis of gross vehicle weight. A trailer, semitrailer or pole trailer towed by a truck of such gross vehicle weight shall be classified as a utility trailer for registration purposes unless otherwise provided by law.
F. All farm vehicles having a declared gross weight of more than six thousand pounds shall be charged registration fees of two-thirds of the rate of the respective fees provided in this section and shall be issued distinctive registration plates. "Farm vehicle" means [any] a vehicle owned by a person whose principal occupation is farming or ranching and which vehicle is used principally in the transportation of farm and ranch products to market and farm and ranch supplies and livestock from the place of purchase to farms and ranches in this state; provided that the vehicle is not used for hire.
G. In addition to other registration fees imposed by this section, beginning July 1, 1994, there is imposed at the time of registration an annual tire recycling fee of one dollar fifty cents ($1.50) on each vehicle subject to a registration fee pursuant to this section, except for vehicles with a declared gross weight of greater than twenty-six thousand pounds upon which registration fees are imposed by Subsection B of this section.
H. [Four] Three percent of registration fees of trucks having from twenty-six thousand one pounds to forty-eight thousand pounds declared gross vehicle weight is to be transferred to the tire recycling fund pursuant to the provisions of Section 66-6-23 NMSA 1978.
I. [Five] Three and seventy-five hundredths percent of registration fees of trucks in excess of forty-eight thousand pounds declared gross vehicle weight is to be transferred to the tire recycling fund pursuant to the provisions of Section 66-6-23 NMSA 1978."
Section 61. Section 66-6-5 NMSA 1978 (being Laws 1978, Chapter 35, Section 340, as amended) is amended to read:
"66-6-5. BUS REGISTRATION FEES.--All buses shall pay the registration fees provided in Section 66-6-4 NMSA 1978, except for school buses and buses operated by religious or nonprofit charitable organizations for the express purpose of the organization for which the annual registration fee is [five dollars ($5.00)] seven dollars ($7.00). In addition to other registration fees imposed by this section, beginning July 1, 1994, there is imposed at the time of registration an annual tire recycling fee of fifty cents ($.50) per wheel that is in contact with the ground on each vehicle subject to a registration fee pursuant to this section."
Section 62. Section 66-6-8 NMSA 1978 (being Laws 1978, Chapter 35, Section 343, as amended) is amended to read:
"66-6-8. BUS REGISTRATION--AGRICULTURAL LABOR FEES.--
A. A bus that has a normal seating capacity of forty passengers or less and that is used exclusively for the transportation of agricultural laborers may be registered upon payment to the division of a fee of [twenty-five dollars ($25.00)] thirty-three dollars ($33.00).
B. In addition to the registration fee imposed by this section, there is imposed at the time of registration an annual tire recycling fee of fifty cents ($.50) per wheel that is in contact with the ground on each vehicle subject to a registration fee pursuant to this section.
C. Application for registration of a bus [under] pursuant to this section shall be made in the form prescribed by the division and shall be accompanied by an affidavit that the bus will be used exclusively for the transportation of agricultural laborers. Upon registration, the bus is exempt from tariff-filing requirements of the public regulation commission."
Section 63. Section 66-6-9 NMSA 1978 (being Laws 1978, Chapter 35, Section 344) is amended to read:
"66-6-9. FEE FOR FERTILIZER TRAILERS.--In lieu of the registration fee provided for in Section [64-6-3 NMSA 1953] 66-6-3 NMSA 1978, the division shall collect a registration fee of [five dollars ($5.00)] seven dollars ($7.00) for each trailer used on the highways of this state by any commercial fertilizer company solely for the delivery or distribution of liquid fertilizer to a farmer; provided [such] the trailer has an empty weight not in excess of three thousand five hundred pounds."
Section 64. Section 66-6-10 NMSA 1978 (being Laws 1978, Chapter 35, Section 345, as amended) is amended to read:
"66-6-10. REGISTRATION FEES FOR MANUFACTURED HOMES AND TRAVEL TRAILERS--DIVISION TO NOTIFY COUNTY ASSESSOR OF MANUFACTURED HOME REGISTRATION.--
A. For the registration of each manufactured home, the division shall collect a fee of [five dollars ($5.00)] seven dollars ($7.00).
B. The division shall compile and transmit to each county assessor each year a list of the manufactured homes that are registered with the division showing [his] the assessor's county as the principal location of the manufactured home. The listing shall include all data pertinent to and necessary for the county assessor to value the manufactured homes in accordance with valuation [regulations] rules promulgated by the property tax division [under] pursuant to Section 7-36-26 NMSA 1978. The listing required by this subsection shall be transmitted no later than thirty days following the close of the annual registration process and shall be supplemented no less often than every thirty days to provide information to the appropriate county assessors on registrations occurring throughout the year.
C. At the time a person registers [his] a manufactured home and pays the fee required by this section, [he] the person shall be notified in writing by the division that the information required by Subsection B of this section will be furnished to the county assessor of the county of the principal location of the manufactured home and that the manufactured home is subject to property taxation under the Property Tax Code."
Section 65. Section 66-6-12 NMSA 1978 (being Laws 1978, Chapter 35, Section 347) is amended to read:
"66-6-12. FEES FOR SCHOOL BUSES.--
A. Registration fees for school buses used solely for the purpose of transportation of school children and other school activities shall be [five dollars ($5.00)] seven dollars ($7.00) a year.
B. The application for registration of a school bus shall be accompanied by the certificate of the director of transportation of the [state department of] public education department stating that the vehicle is used solely and exclusively as a school bus. [No] A passenger car shall not be considered [as] a school bus for the purposes of this section."
Section 66. Section 66-6-23.1 NMSA 1978 (being Laws 1999, Chapter 49, Section 8) is amended to read:
"66-6-23.1. FORMULAIC DISTRIBUTION.--
A. The balance from Section 66-6-23 NMSA 1978 shall be transferred or distributed by the state treasurer on or before the last day of the month next after its receipt, as follows:
(1) [sixty-six and five hundred forty-one thousandths] seventy-four and sixty-five hundredths percent shall be distributed to the state road fund;
(2) [ten and thirty-two thousandths] seven and six-tenths percent shall be transferred to each county in the proportion, determined by the department in accordance with Subsection B of this section, that the registration fees for vehicles in that county are to the total registration fees for vehicles in all counties;
(3) [ten and thirty-two thousandths] seven and six-tenths percent shall be transferred to the counties, with each county receiving an amount equal to the proportion, determined by the secretary of [highway and] transportation in accordance with Subsection D of this section, that the mileage of public roads maintained by the county is to the total mileage of public roads maintained by all counties of the state. Amounts distributed to each county in accordance with this paragraph shall be credited to the respective county road fund and be used for the improvement and maintenance of the public roads in the county and to pay for the acquisition of rights of way and material pits. For this purpose, the board of county commissioners of each of the respective counties shall certify by April 1 of each year to the secretary of [highway and] transportation the total mileage as of April 1 of that year; provided that in their report, the boards of county commissioners shall identify each of the public roads maintained by them by name, route and location. By agreement and in cooperation with the [state highway and] department of transportation [department], the boards of county commissioners of the various counties may use or designate any of the funds provided in this paragraph for [any] a federal aid program;
(4) [five and three hundred fifty-eight thousandths] four and six-hundredths percent shall be allocated among the counties in the proportion, determined by the department in accordance with Subsection B of this section, that the registration fees for vehicles in that county are to the total registration fees for vehicles in all counties. The amount allocated to each county shall be transferred to the incorporated municipalities within the county in the proportion, determined by the department of finance and administration in accordance with Subsection C of this section, that the sum of net taxable value, as that term is defined in the Property Tax Code, plus the assessed value, as that term is used in the Oil and Gas Ad Valorem Production Tax Act and in the Oil and Gas Production Equipment Ad Valorem Tax Act, determined for the incorporated municipality is to the sum of net taxable value plus assessed value determined for all incorporated municipalities within the county. Amounts transferred to incorporated municipalities pursuant to the provisions of this paragraph shall be used for the construction, maintenance and repair of streets within the municipality and for payment of paving assessments against property owned by federal, county or municipal governments. In [any] a county in which there are no incorporated municipalities, the amount allocated pursuant to this paragraph shall be transferred to the county government road fund and used in accordance with the provisions of Paragraph (3) of this subsection; and
(5) [eight and thirty-seven thousandths] six and nine-hundredths percent shall be allocated among the counties in the proportion, determined by the department of finance and administration in accordance with Subsection C of this section, that the registration fees for vehicles in that county are to the total registration fees for vehicles in all counties. The amount allocated to each county shall be transferred to the county and incorporated municipalities within the county in the proportion, determined by the department of finance and administration in accordance with Subsection B of this section, that the computed taxes due for the county and each incorporated municipality within the county bear to the total computed taxes due for the county and incorporated municipalities within the county. For the purposes of this paragraph, the term "computed taxes due" for [any] a jurisdiction means the sum of the net taxable value, as that term is defined in the Property Tax Code, plus the assessed value, as that term is used in the Oil and Gas Ad Valorem Production Tax Act and in the Oil and Gas Production Equipment Ad Valorem Tax Act, for that jurisdiction multiplied by an average of the rates for residential and nonresidential property imposed for that jurisdiction pursuant to Subsection B of Section 7-37-7 NMSA 1978.
B. To carry out the provisions of this section, during the month of June of each year:
(1) the department shall determine and certify to the department of finance and administration the proportions [which] that the department is required to determine pursuant to Subsection A of this section using information for the preceding calendar year on the number of vehicles registered in each county based on the address of the owner or place where the vehicle is principally located, the registration fees for the vehicles registered in each county, the total number of vehicles registered in the state and the total registration fees for all vehicles registered in the state; and
(2) the department of finance and administration shall determine the proportions that the department of finance and administration is required to determine pursuant to [Subsection B of this section] this subsection based upon the net taxable value, as that term is defined in the Property Tax Code, and the assessed value, as that term is used in the Oil and Gas Ad Valorem Production Tax Act and the Oil and Gas Production Equipment Ad Valorem Tax Act, for the preceding tax year and the tax rates imposed pursuant to Subsection B of Section 7-37-7 NMSA 1978 in the preceding September.
C. By June 30 of each year, the department of finance and administration shall determine the appropriate percentage of money to be transferred to each county and municipality for each purpose in accordance with Subsection A of this section based upon the proportions determined by or certified to the department of finance and administration. The percentages determined shall be used to compute the amounts to be transferred to the counties and municipalities during the succeeding fiscal year.
D. The board of county commissioners of each of the respective counties shall, by April 1 of every year, certify reports to the secretary of [highway and] transportation of the total mileage of public roads maintained by each county as of April 1 of every year; provided that in their reports, the boards of county commissioners shall identify each of the public roads maintained by them by name, route and location. By July 1 of every year, the secretary of [highway and] transportation shall verify the reports of the counties and revise, if necessary, the total mileage of public roads maintained by each county. The mileage verified by the secretary of [highway and] transportation shall be the official mileage of public roads maintained by each county. Distribution of amounts to [any] a county for road purposes shall be made in accordance with this section.
E. If a county has not made the required mileage certification pursuant to Section 67-3-28.3 NMSA 1978 by April 1 of any year, the secretary of [highway and] transportation shall estimate the mileage maintained by those counties for the purpose of making distribution to all counties, and the amount calculated to be distributed each month to those counties not certifying mileage shall be reduced by one-third each month for that fiscal year, and that amount not distributed to those counties shall be distributed equally to all counties that have certified mileages."
Section 67. Section 66-7-413 NMSA 1978 (being Laws 1978, Chapter 35, Section 484, as amended by Laws 2003, Chapter 141, Section 4 and by Laws 2003, Chapter 142, Section 23 and by Laws 2003, Chapter 359, Section 42 and also by Laws 2003, Chapter 361, Section 1) is amended to read:
"66-7-413. PERMITS FOR EXCESSIVE SIZE AND WEIGHT--SPECIAL NOTIFICATION REQUIRED ON MOVEMENT OF MANUFACTURED HOMES.--
A. The department of public safety and local highway authorities may, in their discretion, upon application in writing and good cause being shown, issue a special permit in writing authorizing the applicant to operate or move a vehicle or load of a size or weight exceeding the maximum specified in Sections 66-7-401 through 66-7-416 NMSA 1978 on [any] a highway under the jurisdiction of the state transportation commission or local authorities. Except for the movement of manufactured homes, a permit may be granted, in cases of emergency, for the transportation of loads on a certain unit or combination of equipment for a specified period of time not to exceed one year, and the permit shall contain the route to be traversed, the type of load to be transported and any other restrictions or conditions deemed necessary by the body granting the permit. In every other case, the permit shall be issued for a single trip and may designate the route to be traversed and contain any other restrictions or conditions deemed necessary by the body granting the permit. Every permit shall be carried in the vehicle to which it refers and shall be opened for inspection to any peace officer. It is a misdemeanor for [any] a person to violate [any of the conditions] a condition or [terms] term of the special permit.
B. The department of public safety shall charge and collect, when the movement consists of [any] a load of a width of twenty feet or greater for a distance of five miles or more, the sum of three hundred dollars ($300) a day or fraction thereof to defray the cost of state or local police escort. The permit issued and the fee charged shall be based upon the entire movement at one time requiring police escort and not upon the number of vehicles involved.
C. The department of public safety shall promulgate [regulations] rules in accordance with the State Rules Act pertaining to safety practices, liability insurance and equipment for escort vehicles provided by the motor carrier himself and for escort vehicles provided by a private business in this state.
(1) [If a motor carrier provides his own escort vehicles and personnel] The department [shall not charge an escort fee but] of public safety shall provide the [motor carrier] escort personnel with a copy of applicable [regulations] rules and shall inspect the escort vehicles for the safety equipment required by the [regulations] rules. If the escort vehicles and personnel meet the requirements set forth in the [regulations and if the motor carrier holds a valid certificate of public convenience and necessity or permit, as applicable, issued pursuant to Chapter 65, Article 2 NMSA 1978] rules, the department of public safety shall issue the special permit, but shall not charge an escort fee. If the motor carrier provides its own escort vehicles and personnel, the department of public safety shall require that the motor carrier have a warrant issued by the public regulation commission.
[(2) If the escort service is a private business, the business shall have applied to the public regulation commission for and been issued a permit or certificate to operate as a contract or common motor carrier pursuant to Chapter 65, Article 2 NMSA 1978. The public regulation commission shall supply copies of applicable regulations to the business by mail and shall supply additional copies upon request. If the escort vehicles and personnel meet the requirements set forth in the regulations and if the escort service holds a certificate, the special permit shall be issued and the department shall not charge an escort fee.
(3)] (2) The movement of vehicles upon the highways of this state requiring a special permit and required to use an escort of the type noted in [Paragraphs (1) and (2)] Paragraph (1) of this subsection is subject to department of public safety authority and inspection at all times.
[(4)] (3) The [state highway and] department of transportation [department] shall conduct engineering investigations and engineering inspections to determine which four-lane highways are safe for the operation or movement of manufactured homes without an escort. After making that determination, the [state highway and] department of transportation [department] shall hold public hearings in the area of the state affected by the determination, after which it may adopt [regulations] rules designating those four-lane highways as being safe for the operation or movement of manufactured homes without an escort. If [any] a portion of such a four-lane highway lies within the boundaries of a municipality, the [state highway and] department of transportation [department], after obtaining the approval of the municipal governing body, shall include such portions in its [regulations] rules.
D. Except for the movement of manufactured homes, special permits may be issued for a single vehicle or combination of vehicles by the department of public safety for a period not to exceed one year for a fee of [sixty dollars ($60.00)] three hundred dollars ($300). The permits may allow excessive height, length and width for a vehicle or combination of vehicles or load thereon and may include a provision for excessive weight if [the operation is to be within the vicinity of a municipality] the distance between the origin and the destination of each single trip is thirty miles or less. Utility service vehicles, operating with special permits pursuant to this subsection, shall be exempt from prohibitions or restrictions relating to hours or days of operation or restrictions on movement because of poor weather conditions.
E. Special permits for a single trip for a vehicle or combination of vehicles or load thereon of excessive weight, width, length and height may be issued by the department of public safety for a single vehicle for a fee of [fifteen dollars ($15.00)] twenty-five dollars ($25.00) plus the product of four cents ($.04) for each two thousand pounds in excess of eighty-six thousand four hundred pounds or major fraction thereof multiplied by the number of miles to be traveled by the vehicle or combination of vehicles on the highways of this state.
F. If [the] a vehicle for which a permit is issued [under] pursuant to this section is a manufactured home, the department of public safety or local highway authority issuing the permit shall furnish the following information to the property tax division of the taxation and revenue department, which shall [then] forward the information:
(1) to the county assessor of [any] a county from which a manufactured home is being moved, the date the permit was issued, the location being moved from, the location being moved to if within the same county, the name of the owner of the manufactured home and the identification and registration numbers of the manufactured home;
(2) to the county assessor of any county in this state to which a manufactured home is being moved, the date the permit was issued, the location being moved from, the location being moved to, the name of the owner of the manufactured home and the registration and identification numbers of the manufactured home; and
(3) to the owner of a manufactured home having a destination in this state, notification that the information required in Paragraphs (1) and (2) of this subsection is being given to the respective county assessors and that manufactured homes are subject to property taxation.
G. Except as provided in Subsection H of this section, if the movement of a manufactured home originates in this state, [no] a permit shall not be issued [under] pursuant to Subsection F of this section until the owner of the manufactured home or [his] the authorized agent of the owner obtains and presents to the department of public safety proof that a certificate has been issued by the county assessor or treasurer of the county in which the manufactured home movement originates showing that either:
(1) all property taxes due or to become due on the manufactured home for the current tax year or any past tax years have been paid, except for manufactured homes located on an Indian reservation; or
(2) [no] liability for property taxes on the manufactured home [exists] does not exist for the current tax year or [any] a past tax [years] year, except for manufactured homes located on an Indian reservation.
H. The movement of a manufactured home from the lot or business location of a manufactured home dealer to its destination designated by an owner-purchaser is not subject to the requirements of Subsection G of this section if the manufactured home movement originates from the lot or business location of the dealer and the manufactured home was part of [his] the dealer's inventory prior to the sale to the owner-purchaser; however, the movement of a manufactured home by a dealer or [his] the dealer's authorized agent as a result of a sale or trade-in from a nondealer-owner is subject to the requirements of Subsection G of this section whether the destination is the business location of a dealer or some other destination.
I. [No] A permit shall not be issued [under] pursuant to this section for movement of a manufactured home whose width exceeds eighteen feet with no more than a six-inch roof overhang on the left side or twelve inches on the right side in addition to the eighteen-foot width of the manufactured home. Manufactured homes exceeding the limitations of this section shall only be moved on dollies placed on the front and the rear of the structure.
J. The secretary of public safety may by [regulation] rule provide for movers of manufactured homes to self-issue permits for certain sizes of manufactured homes over specific routes [however, in no case may]. The cost of [each] a permit shall not be less than [fifteen dollars ($15.00)] twenty-five dollars ($25.00).
K. The secretary of public safety may provide by [regulation] rule for dealers of implements of husbandry to self-issue permits for the movement of certain sizes of implements of husbandry from the lot or business location of the dealer over specific routes with specific escort requirements, if necessary, to a destination designated by an owner-purchaser or for purposes of a working demonstration on the property of a proposed owner-purchaser. The department of public safety shall charge a fee for each self-issued permit not to exceed fifteen dollars ($15.00).
L. [Any] A private motor carrier requesting an oversize or overweight permit shall provide proof of insurance in at least the following amounts:
(1) bodily injury liability, providing:
(a) fifty thousand dollars ($50,000) for each person; and
(b) one hundred thousand dollars ($100,000) for each accident; and
(2) property damage liability, providing twenty-five thousand dollars ($25,000) for each accident.
M. [Any common] A motor carrier requesting an oversize permit shall produce a copy of a [form "e" or other acceptable] warrant or single state registration receipts as evidence that the [common] motor carrier maintains the insurance minimums prescribed by the public regulation commission.
N. The department of public safety may provide by rule the time periods during which a vehicle or load of a size or weight exceeding the maximum specified in Sections 66-7-401 through 66-7-416 NMSA 1978 may be operated or moved by a motor carrier on a highway under the jurisdiction of the state transportation commission or local authorities.
O. Revenue from fees for special permits authorizing vehicles and loads of excessive size or weight to operate or move upon a highway under the jurisdiction of the state transportation commission or local authorities shall be collected for the department of transportation and transferred to the state road fund."
Section 68. Section 66-7-413.4 NMSA 1978 (being Laws 2001, Chapter 20, Section 2) is amended to read:
"66-7-413.4. PERMITS FOR EXCESSIVE WEIGHT.--
A. In addition to the authority granted in Section 66-7-413 NMSA 1978, the motor transportation division of the department of public safety may issue special permits authorizing an increase of up to twenty-five percent in axle weight for liquid hauling tank vehicles whenever the liquid hauling tank vehicles would have to haul less than a full tank under the maximum weights authorized in Section 66-7-409 and 66-7-410 NMSA 1978. A special permit under this section may be issued for a single trip or for a year. The fee for the permits shall be thirty-five dollars ($35.00) for a single-trip permit and one hundred twenty dollars ($120) for an annual permit. Revenue from the permit fee shall be used to build, maintain, repair or reconstruct the highways and bridges of this state. Revenue from the permit shall be collected for the department of transportation and transferred to the state road fund.
B. The special permits authorized by this section shall not be valid for transportation of excessive weights on the interstate system as currently defined in federal law or as that system may be defined in the future. [No] A special permit issued pursuant to this section shall not be valid for gross vehicle weights in excess of eighty-six thousand four hundred pounds or for [any] a combination vehicle.
C. If the federal highway administration of the United States department of transportation gives official notice that money will be withheld or that this section violates the grandfather provision of 23 USCA 127, the secretary may withdraw all special permits and discontinue issuance of all special permits authorized in this section until such time that final determination is made. If the final determination allows the state to issue the special permits without sanction of funds or weight tables, [then] the secretary shall reissue the special permits previously withdrawn and make the special permits available pursuant to this section."
Section 69. Section 67-3-59.2 NMSA 1978 (being Laws 1999 (1st S.S.), Chapter 9, Section 3) is amended to read:
"67-3-59.2. HIGHWAY INFRASTRUCTURE FUND CREATED--PURPOSE.--
A. The "highway infrastructure fund" is created in the state treasury and shall be administered by the department. The fund shall consist of money from various fees and 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 not revert and shall remain in the fund for the purposes authorized in this section.
B. Money in the fund shall be used solely for acquisition of rights of way or planning, design, engineering, construction or improvement of state highway projects authorized pursuant to the provisions of Laws 1998, Chapter 84, [and] Subsections C through H of Section 1 of Chapter 85 of Laws 1998 and Sections 97 and 98 of this 2003 act and is appropriated to the department for expenditure for those purposes.
C. The taxes and fees required by law to be distributed to the highway infrastructure fund may be pledged for the payment of state highway bonds issued pursuant to [Section] Sections 67-3-59.1 and 67-3-59.3 NMSA 1978 for the highway projects authorized in the laws specified in Subsection B of this section."
Section 70. A new section of Chapter 67, Article 3 NMSA 1978, Section 67-3-59.3 NMSA 1978, is enacted to read:
"67-3-59.3. [NEW MATERIAL] STATE TRANSPORTATION PROJECT BONDS--ISSUANCE--LIMITS--APPROVAL.--
A. In order to provide funds to finance state transportation projects, the New Mexico finance authority, when directed by the state transportation commission, is authorized, subject to the limitations of this section, to issue bonds from time to time, payable from:
(1) federal funds not otherwise obligated that are paid into the state road fund;
(2) proceeds of the collection of additional taxes and fees that are required in this 2003 act to be paid into the state road fund and not otherwise pledged exclusively to the payment of outstanding bonds and debentures; and
(3) taxes and fees required by law to be paid into the highway infrastructure fund.
B. Upon authorization of state transportation projects and appropriation of net bond proceeds by the legislature, bonds in the total aggregate principal amount of one billion five hundred eighty-five million dollars ($1,585,000,000) may be issued by the New Mexico finance authority pursuant to this section for state transportation projects, to be secured by or payable from taxes or fees required by law to be paid into the state road fund, federal funds not otherwise obligated that are paid into the state road fund and taxes or fees required by law to be paid into the highway infrastructure fund.
C. The New Mexico finance authority, when directed by the state transportation commission, may issue bonds to refund other bonds issued by or at the direction of the state transportation commission pursuant to this section or Section 67-3-59.1 NMSA 1978 by exchange or current or advance refunding.
D. In consultation with the state transportation commission, the New Mexico finance authority shall determine all terms, covenants and conditions of the bonds; provided that the project design life of a project meets or exceeds the life of the bond issued for that project, and each series of bonds shall be sold, executed and delivered in accordance with the provisions of the New Mexico Finance Authority Act. The New Mexico finance authority 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 without obtaining the approval of such agreements by any agency or board of the state, notwithstanding the provisions of any other law of the state.
E. Proceeds of the bonds and amounts on deposit in the state road fund and the highway infrastructure 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 under the 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 bond 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 and a political subdivision or agency of the state.
H. Any law authorizing the imposition or distribution of taxes or fees paid into the state road fund or the highway infrastructure 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 state road fund or the highway infrastructure 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 New Mexico finance authority pursuant to the provisions of this section remain outstanding, the powers or duties of the state transportation commission or the authority shall not be diminished or impaired in any manner that will affect adversely the interests and rights of the holder of such bonds.
I. In contracting for state transportation projects to be paid in whole or in part with proceeds of bonds authorized by this section, the department shall require that any sand, gravel, caliche or similar material needed for the project shall, if practicable, be mined from state lands. Each contract shall provide that the contractor notify the commissioner of public lands of the need for the material and that, through lease or purchase, the material shall be mined from state lands if:
(1) the material needed is available from state lands in the vicinity of the project;
(2) the commissioner determines that the lease or purchase is in the best interest of the state land trust beneficiaries; and
(3) the cost to the contractor for the material, including the costs of transportation, is competitive with other available material from nonstate lands.
J. Bonds issued pursuant to this section shall be paid solely from federal funds not otherwise obligated and taxes and fees deposited into the state road fund and the highway infrastructure fund and shall not constitute a general obligation of the state.
K. For purposes of this section, "state transportation project bonds" includes only those bonds issued pursuant to this section and excludes transportation bonds as defined in Section 67-3-72 NMSA 1978."
Section 71. Section 67-3-65.1 NMSA 1978 (being Laws 1983, Chapter 211, Section 40) is amended to read:
"67-3-65.1. STATE ROAD FUND DISTRIBUTION.--The amounts distributed to the state road fund pursuant to [Section] Sections 7-1-6.10, 66-6-23 and 66-6-23.1 NMSA 1978 shall be used for maintenance, construction and improvement of [the public highways] state transportation projects and to meet federal allotments under the federal-aid road laws, but sufficient money from the state road fund shall be set aside each year by the state treasurer to pay the principal and interest [coupons of highway debentures] due each year on state transportation revenue bonds issued to anticipate the collection of this revenue [as the principal and interest coupons mature]."
Section 72. [NEW MATERIAL] APPROPRIATION OF BOND PROCEEDS--AUTHORIZED TRANSPORTATION PROJECTS.--
A. The net proceeds of state transportation project bonds issued by the New Mexico finance authority pursuant to Section 67-3-59.3 NMSA 1978 and Subsection B of this section are appropriated to the department of transportation for the following authorized transportation projects:
(1) for the reconstruction of the interchange at the intersection of Coors boulevard and interstate 40 in Albuquerque;
(2) for the reconstruction and improvement of interstate 25 to accommodate public transportation elements, including commuter rail from Albuquerque to Santa Fe;
(3) for the reconstruction and improvement of United States highway 54 from Tularosa to Santa Rosa;
(4) for the reconstruction and improvement of United States highway 64/87 from Raton to Clayton;
(5) for the reconstruction and improvement of United States highway 491 from Tohatchi to Shiprock;
(6) for the reconstruction and improvement of United States highway 491 from Shiprock to the Colorado state line;
(7) for the reconstruction and improvement of United States highway 62/180 from the Texas state line to Carlsbad;
(8) for the reconstruction and improvement of various sections of interstate 40 from Newkirk to Tucumcari;
(9) for the reconstruction and improvement of various sections of interstate 40 between Gallup and the Arizona state line;
(10) for the reconstruction and improvement of various sections of interstate 40 between Thoreau and Grants;
(11) for the reconstruction and improvement of interstate 40 in Albuquerque from Carlisle boulevard to Juan Tabo boulevard;
(12) for the reconstruction and improvement of interstate 40 east of Albuquerque from Carnuel to Sedillo;
(13) for the reconstruction and improvement of interstate 40 in Albuquerque from Central avenue to Coors boulevard;
(14) for the reconstruction and improvement of interstate 40 at various locations from the Pueblo of Laguna to Mesita;
(15) for the reconstruction and improvement of interstate 40 from Canoncito to Rio Puerco;
(16) for the reconstruction and improvement of interstate 40 in Moriarty from the west interchange to the east interchange;
(17) for the reconstruction and improvement of interstate 10 from Lordsburg to the junction of state highway 146;
(18) for the reconstruction and improvement to accommodate public transportation elements of interstate 10 from the Texas state line to Las Cruces;
(19) for the reconstruction and improvement of United States highway 84/285 from Pojoaque to Espanola;
(20) for the reconstruction and improvement of state highway 45 in Albuquerque from the junction above interstate 25 north to Central avenue;
(21) for the reconstruction and improvement of state highway 128 from state highway 31 to the Texas state line;
(22) for the reconstruction and improvement of state highway 11 from Columbus to Deming;
(23) for the reconstruction and improvement of United States highway 60 from Abo to Willard;
(24) for the reconstruction and improvement of United States highway 56 from Springer east to Abbott;
(25) for the reconstruction and improvement of United States highway 380 west of Tatum east to the Texas state line;
(26) for the reconstruction and improvement of various sections of United States highway 380 from Capitan to Hondo;
(27) for the reconstruction and improvement of various sections of United States highway 64 from the San Juan-Rio Arriba county line to the junction of United States highway 84;
(28) for the reconstruction and improvement of state highway 8 from Eunice to United States highway 62;
(29) for the reconstruction and improvement of United States highway 285 from Encino to Clines Corners;
(30) for the reconstruction and improvement of various sections of United States highway 84 from interstate 25 south to Dilia;
(31) for the reconstruction and improvement of various sections of state highway 26 between Deming and Hatch;
(32) for the reconstruction and improvement of state highway 83 from Lovington to the junction of state highway 132;
(33) for the reconstruction and improvement of state highway 209 from NM 268 to Grady;
(34) for the reconstruction and improvement of United States highway 84 from Fort Sumner to Santa Rosa;
(35) for the reconstruction and improvement of various sections of United States highway 62/180 from the Texas state line to the Lea-Eddy county line;
(36) for the reconstruction and improvement of United States highway 285 from Clines Corners to Lamy;
(37) for the reconstruction and improvement of United States highway 180 from Deming to Bayard; and
(38) for improvements to the physical facilities of the department of transportation.
B. The New Mexico finance authority may issue and sell state transportation project bonds for the state transportation projects authorized in this section when directed by the state transportation commission and when the commission certifies a need for issuance of the bonds for the projects. Within thirty days of commission authorization for a bond sale, the New Mexico finance authority oversight committee and the legislative finance committee shall hold a joint meeting at which the New Mexico finance authority and the department of transportation shall present details of the proposed bond sale to the committees.
C. Any unexpended or unencumbered balance after the completion of the projects authorized in this section shall revert to the state road fund.
D. For purposes of this section, "construction", "reconstruction", "rehabilitation" and "improvement" include planning, designing, engineering, constructing and acquiring rights of way.
Section 73. [NEW MATERIAL] APPROPRIATION OF BOND PROCEEDS--AUTHORIZED TRANSPORTATION PROJECTS--MATCHING FUNDS.--
A. The net proceeds of state transportation project bonds issued by the New Mexico finance authority pursuant to Section 67-3-59.3 NMSA 1978 and Subsection B of this section are appropriated to the department of transportation for the following transportation projects subject to the provisions of Subsection B of this section:
(1) for the Rio Bravo boulevard extension and interchange construction to access Mesa del Sol in Albuquerque and Bernalillo county; and
(2) for the reconstruction of an interchange at interstate 40 and West Central avenue in Albuquerque and Bernalillo county.
B. The New Mexico finance authority may issue and sell state transportation project bonds for six million dollars ($6,000,000) per project for the state transportation projects authorized in this section if:
(1) directed by the state transportation commission;
(2) the state transportation commission certifies a need for issuance of the bonds for the projects; and
(3) prior to issuing bonds, the political subdivision benefiting from the project deposits local matching funds with the state transportation commission for the authorized project in an amount that, when added to the net proceeds of the bonds, would be adequate to complete the project.
C. The amount of the local match for projects authorized by this section shall be determined by a sliding scale based on the political subdivision's financial capacity to pay a portion of the project from local resources pursuant to rules promulgated by the state transportation commission.
Section 74. TEMPORARY PROVISION--OUTSTANDING STATE HIGHWAY REVENUE BONDS.--
A. Nothing in this act shall be deemed to impair state highway revenue bonds previously issued by the state transportation commission and outstanding on the effective date of this act.
B. If required by the terms, covenants and provisions of state highway revenue bonds previously issued by the state transportation commission and outstanding on the effective date of this act, additional bonds issued by the state transportation commission or the New Mexico finance authority when directed by the state transportation commission pursuant to this act shall contain any required terms, covenants and provisions required to avoid impairment of the previously issued bonds.
Section 75. REPEAL.--Sections 7-9-13.1 and 7-15A-10 NMSA 1978 (being Laws 1989, Chapter 262, Section 4 and Laws 1988, Chapter 24, Section 9, as amended) are repealed.
Section 76. APPLICABILITY.--The provisions of Sections 7 through 13 of this act apply to taxable years beginning on or after January 1, 2004.
Section 77. EFFECTIVE DATE.--
A. The effective date of the provisions of Sections 25, 27 and 57 through 66 of this act is March 1, 2004.
B. The effective date of the provisions of Sections
1 through 6, 14 through 24, 26 through 56, 67, 68 and 75 of this act is July 1, 2004.
Section 78. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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