0001| AN ACT | 0002| RELATING TO STATE HIGHWAY BONDS; AUTHORIZING THE GOVERNOR TO IMPOSE A | 0003| HIGHWAY BONDING GASOLINE TAX UNDER CERTAIN CONDITIONS; REQUIRING | 0004| ISSUANCE OF ADDITIONAL STATE HIGHWAY BONDS AND INCREASING THE AMOUNT OF | 0005| STATE HIGHWAY BONDS THAT MAY BE ISSUED BY THE STATE HIGHWAY COMMISSION; | 0006| AMENDING AND ENACTING SECTIONS OF THE NMSA 1978. | 0007| | 0008| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0009| Section 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994, Chapter 5, | 0010| Section 2, as amended by Laws 1995, Chapter 6, Section 1 and also by | 0011| Laws 1995, Chapter 36, Section 1) is amended to read: | 0012| "7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.-- | 0013| A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0014| shall be made to the state aviation fund in an amount equal to three and | 0015| fifty-nine hundredths percent of the gross receipts attributable to the | 0016| sale of fuel specially prepared and sold for use in turboprop or | 0017| jet-type engines as determined by the department. | 0018| B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0019| shall be made to the state aviation fund in an amount equal to | 0020| twenty-six hundredths of one percent of the gasoline tax, exclusive of | 0021| penalties and interest, collected pursuant to the Gasoline Tax Act." | 0022| Section 2. Section 7-1-6.9 NMSA 1978 (being Laws 1991, Chapter 9, | 0023| Section 11, as amended) is amended to read: | 0024| "7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES AND | 0025| COUNTIES.-- | 0001| A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0002| shall be made in an amount equal to ten and thirty-eight hundredths | 0003| percent of the net receipts attributable to the gasoline tax, exclusive | 0004| of penalties and interest, imposed by the Gasoline Tax Act. | 0005| B. The amount determined in Subsection A of this section | 0006| shall be distributed as follows: | 0007| (1) ninety percent of the amount shall be paid to the | 0008| treasurers of municipalities and H class counties in the proportion that | 0009| the taxable motor fuel sales in each of the municipalities and H class | 0010| counties bears to the aggregate taxable motor fuel sales in all of these | 0011| municipalities and H class counties; and | 0012| (2) ten percent of the amount shall be paid to the | 0013| treasurers of the counties, including H class counties, in the | 0014| proportion that the taxable motor fuel sales outside of incorporated | 0015| municipalities in each of the counties bears to the aggregate taxable | 0016| motor fuel sales outside of incorporated municipalities in all of the | 0017| counties. | 0018| C. This distribution shall be paid into the municipal | 0019| treasury or county general fund for general purposes or for any special | 0020| purposes designated by the governing body of the municipality or county. | 0021| Any municipality or H class county that has created or that creates a | 0022| "street improvement fund" to which gasoline tax revenues or | 0023| distributions are irrevocably pledged under Sections 3-34-1 through | 0024| 3-34-4 NMSA 1978 or that has pledged all or a portion of gasoline tax | 0025| revenues or distributions to the payment of bonds shall receive its | 0001| proportion of the distribution of revenues under this section impressed | 0002| with and subject to these pledges." | 0003| Section 3. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter | 0004| 211, Section 15, as amended by Laws 1995, Chapter 6, Section 4 and also | 0005| by Laws 1995, Chapter 16, Section 11) is amended to read: | 0006| "7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.-- | 0007| A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0008| shall be made to the state road fund in an amount equal to the net | 0009| receipts attributable to the taxes, surcharges, penalties and interest | 0010| imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes, | 0011| fees, penalties and interest imposed pursuant to the Special Fuels Tax | 0012| Act, the Special Fuels Supplier Tax Act and the Alternative Fuel Tax Act | 0013| less: | 0014| (1) the amount distributed to the state aviation fund | 0015| pursuant to Subsection B of Section 7-1-6.7 NMSA 1978; | 0016| (2) the amount distributed to the motorboat fuel tax | 0017| fund pursuant to Section 7-1-6.8 NMSA 1978; | 0018| (3) the amount distributed to municipalities and | 0019| counties pursuant to Subsection A of Section 7-1-6.9 NMSA 1978; | 0020| (4) the amount distributed to the county government | 0021| road fund pursuant to Section 7-1-6.19 NMSA 1978; | 0022| (5) the amount distributed to the local governments | 0023| road fund pursuant to Section 7-1-6.39 NMSA 1978; | 0024| (6) the amount distributed to the municipalities | 0025| pursuant to Section 7-1-6.27 NMSA 1978; and | 0001| (7) the amount distributed to the municipal arterial | 0002| program of the local governments road fund pursuant to Section 7-1-6.28 | 0003| NMSA 1978. | 0004| B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 | 0005| shall be made to the state road fund in an amount equal to the net | 0006| receipts attributable to the taxes, fees, interest and penalties from | 0007| the Weight Distance Tax Act." | 0008| Section 4. Section 7-13-3.1 NMSA 1978 (being Laws 1979, Chapter | 0009| 166, Section 7, as amended) is amended to read: | 0010| "7-13-3.1. GASOLINE INVENTORY TAX--IMPOSITION OF TAX--DATE | 0011| PAYMENT OF TAX DUE.-- | 0012| A. A gasoline inventory tax is imposed measured by the | 0013| quantity of gallons of gasoline in the possession of a distributor or | 0014| wholesaler on the day on which an increase in the excise tax imposed by | 0015| Section 7-13-3 NMSA 1978 or the initial imposition or increase in the | 0016| excise tax imposed by Section 7-13-3.5 NMSA 1978 is effective. The | 0017| taxable event is the existence of an inventory in the possession of a | 0018| distributor or wholesaler on the day prior to the day on which an | 0019| increase in the excise tax imposed by Section 7-13-3 NMSA 1978 or the | 0020| initial imposition or increase in the excise tax imposed by Section 7-13-3.5 NMSA 1978 is effective. The rate of the gasoline inventory tax | 0021| to apply on each gallon of gasoline held in inventory by a distributor | 0022| or wholesaler, as provided in Section 7-13-3.2 NMSA 1978, shall be the | 0023| difference between the gasoline tax rate or the highway bonding gasoline | 0024| tax rate, whichever is applicable, imposed on the day prior to the day | 0025| on which the applicable tax is increased or initially imposed subtracted | 0001| from the applicable tax rate imposed on the day that the applicable tax | 0002| rate increase or imposition is effective, expressed in cents per gallon. | 0003| B. The gasoline inventory tax is to be paid to the | 0004| department on or before the twenty-fifth day of the month following the | 0005| month in which the taxable event occurs." | 0006| Section 5. Section 7-13-3.2 NMSA 1978 (being Laws 1979, Chapter | 0007| 166, Section 8, as amended) is amended to read: | 0008| "7-13-3.2. GASOLINE INVENTORIES.-- | 0009| A. On the day prior to the day that the excise tax imposed | 0010| by Section 7-13-3 NMSA 1978 is increased or the excise tax imposed by | 0011| Section 7-13-3.5 NMSA 1978 is initially imposed or increased, each | 0012| distributor, wholesaler and retailer shall take inventory of the gallons | 0013| of gasoline on hand. | 0014| B. Distributors and wholesalers shall report total gallons | 0015| of gasoline in inventory on the day prior to the day that an increase in | 0016| the gasoline tax rate is effective and pay any tax due imposed by | 0017| Section 7-13-3.1 NMSA 1978. | 0018| C. Retailers shall maintain a record of the total gallons of | 0019| gasoline in inventory on the day prior to the day that an increase in | 0020| the gasoline tax rate or the initial imposition or an increase in the | 0021| highway bonding gasoline tax rate is effective and shall not increase | 0022| the price of the gasoline sold until the inventory is disposed of in the | 0023| ordinary course of business." | 0024| Section 6. A new section of the Gasoline Tax Act, Section 7-13-3.5 NMSA 1978, is enacted to read: | 0025| "7-13-3.5. IMPOSITION AND RATE OF HIGHWAY BONDING GASOLINE TAX--LIMITATION.-- | 0001| A. The governor is authorized, subject to the limitations of | 0002| this section, to impose for the privilege of receiving gasoline in this | 0003| state an excise tax at a rate not to exceed two cents ($.02) per gallon | 0004| of gasoline received in New Mexico. The tax may be imposed in one-cent | 0005| ($.01) increments and may be referred to as the "highway bonding | 0006| gasoline tax". The proceeds from the tax shall be used only to secure | 0007| or pay state highway bonds issued pursuant to Paragraph (2) of | 0008| Subsection C of Section 67-3-59.1 NMSA 1978. | 0009| B. The governor may impose any increment of the tax | 0010| authorized by Subsection A of this section only upon a finding that the | 0011| tax increase is necessary because there are insufficient revenues | 0012| available in the state road fund to pledge for the issuance of the | 0013| amounts of state highway bonds that: | 0014| (1) are authorized pursuant to Paragraph (2) of | 0015| Subsection C of Section 67-3-59.1 NMSA 1978; and | 0016| (2) are needed to fund statewide road improvements | 0017| that the state highway commission certifies are necessary for purposes | 0018| of safety, commerce and economic development. | 0019| C. The tax authorized to be imposed pursuant to this section | 0020| shall become effective only upon July 1 or January 1, whichever date | 0021| occurs first, after the expiration of at least three months from the | 0022| date the governor issues the finding pursuant to Subsection B of this | 0023| section." | 0024| Section 7. Section 7-13-5 NMSA 1978 (being Laws 1971, Chapter | 0025| 207, Section 5, as amended) is amended to read: | 0001| "7-13-5. TAX RETURNS--PAYMENT OF TAX.--Distributors shall file | 0002| gasoline tax and highway bonding gasoline tax returns in form and | 0003| content as prescribed by the secretary on or before the twenty-fifth day | 0004| of the month following the month in which gasoline is received in New | 0005| Mexico. Such returns shall be accompanied by payment of the amount of | 0006| gasoline tax or highway bonding gasoline tax due." | 0007| Section 8. Section 7-13-13 NMSA 1978 (being Laws 1971, Chapter | 0008| 207, Section 12, as amended) is amended to read: | 0009| "7-13-13. PERMIT TO PURCHASE DYED GASOLINE AND APPLY FOR REFUND | 0010| OF TAX ON GASOLINE NOT USED IN MOTOR BOATS OR IN MOTOR VEHICLES OPERATED | 0011| ON HIGHWAYS OF THIS STATE.-- | 0012| A. Each person who wishes to purchase gasoline dyed in | 0013| accordance with the provisions of Section 7-13-15 NMSA 1978 and to claim | 0014| a refund of gasoline tax and highway bonding gasoline tax paid on such | 0015| gasoline under the provisions of Section 7-13-14 NMSA 1978 shall apply | 0016| for and obtain a permit to do so from the department. The application | 0017| for the permit shall be in form and content as prescribed by the | 0018| department. | 0019| B. The secretary may, upon notice and after hearing, suspend | 0020| the gasoline tax and highway bonding gasoline tax refund permit of any | 0021| person who makes any false statement on an application for a permit or | 0022| on a claim for refund made under Section 7-13-14 NMSA 1978 who uses | 0023| gasoline dyed in accordance with Section 7-13-15 NMSA 1978 in a motor | 0024| boat or in a vehicle licensed to operate on the highways of this state | 0025| or who violates any other provision of the Gasoline Tax Act. Such | 0001| suspension may be, at the discretion of the secretary, for a period of | 0002| up to one year." | 0003| Section 9. Section 7-13-14 NMSA 1978 (being Laws 1971, Chapter | 0004| 207, Section 13, as amended) is amended to read: | 0005| "7-13-14. CLAIM FOR REFUND OF TAX PAID ON GASOLINE NOT USED IN | 0006| MOTOR BOATS OR IN MOTOR VEHICLES LICENSED TO OPERATE ON HIGHWAYS OF THIS | 0007| STATE.--Upon submission of proof satisfactory to the department, the | 0008| department shall allow a claim for refund of gasoline tax and highway | 0009| bonding gasoline tax paid on dyed gasoline purchased and used within six | 0010| months prior to the filing of the claim by holders of permits issued | 0011| under Section 7-13-13 NMSA 1978. The individual purchases of such | 0012| gasoline, other than that to be used as aviation fuel, must have been | 0013| made in quantities of fifty gallons or more. Purchasers of aviation | 0014| fuel may accumulate invoices to reach the minimum required for filing a | 0015| claim for refund. No claim for refund may be presented on less than one | 0016| hundred gallons so purchased. The secretary may, by regulation, | 0017| prescribe the documents necessary to support a claim for refund and the | 0018| invoice and sales procedure to be followed by sellers and purchasers of | 0019| gasoline not intended to be used in motor boats or in motor vehicles | 0020| licensed to operate on the highways of this state by the motor vehicle | 0021| division of the department." | 0022| Section 10. Section 67-3-59.1 NMSA 1978 (being Laws 1989, Chapter | 0023| 157, Section 1, as amended) is amended to read: | 0024| "67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS--APPROVAL--COUPONS.-- | 0025| A. In order to provide funds to finance state highway | 0001| projects, including state highway projects that are required for the | 0002| waste isolation pilot project and are eligible for federal reimbursement | 0003| or payment as authorized by federal legislation, the state highway | 0004| commission is authorized to issue bonds from time to time, payable from | 0005| federal funds, not otherwise obligated, that are paid into the state | 0006| road fund and from the proceeds from the collection of taxes and fees | 0007| that are required by law to be paid into the state road fund and not | 0008| otherwise pledged solely to the payment of outstanding bonds and | 0009| debentures. | 0010| B. Except as provided in Subsection C of this section, the | 0011| total aggregate outstanding principal amount of bonds issued from time | 0012| to time pursuant to this section, secured by or payable from federal | 0013| funds, not otherwise obligated, that are paid into the state road fund | 0014| and the proceeds of the collection of taxes and fees required by law to | 0015| be paid into the state road fund, shall not, without additional | 0016| authorization of the state legislature, exceed one hundred fifty million | 0017| dollars ($150,000,000) at any given time, subject to the following | 0018| provisions: | 0019| (1) the total aggregate outstanding principal amount | 0020| of bonds issued for state highway projects that are required for the | 0021| waste isolation pilot project and are eligible for federal reimbursement | 0022| as authorized by federal legislation shall not exceed one hundred | 0023| million dollars ($100,000,000); and | 0024| (2) the total aggregate outstanding principal amount | 0025| of bonds issued for state highway projects, other than state highway | 0001| projects that are required for the waste isolation pilot project and are | 0002| eligible for federal reimbursement as authorized by federal legislation, | 0003| shall not exceed fifty million dollars ($50,000,000). | 0004| C. An amount shall be added to the total aggregate | 0005| outstanding principal amount of bonds authorized for issuance by the | 0006| state highway commission for state highway projects secured by or | 0007| payable from federal funds, not otherwise obligated, and proceeds from | 0008| the collection of taxes and fees required by law to be paid into the | 0009| state road fund, and from this additional authorization, the state | 0010| highway commission may issue the amount of bonds that the commission, | 0011| subject to the provisions of this section, determines can be serviced | 0012| with an amount approximately equal to the net receipts attributable to | 0013| four cents ($.04) of the gasoline tax distributed by law into the state | 0014| road fund and any other receipts distributed by law into the state road | 0015| fund, other than gasoline tax receipts in excess of the amount of net | 0016| receipts attributable to four cents ($.04) of the gasoline tax. | 0017| D. The state highway commission may issue bonds to refund | 0018| other bonds issued pursuant to this section by exchange or current or | 0019| advance refunding. | 0020| E. Each series of bonds shall have a maturity of no more | 0021| than twenty-five years from the date of issuance; provided that bonds | 0022| issued pursuant to Subsection C of this section shall have a maturity of | 0023| no more than five years from the date of issuance. The state highway | 0024| commission shall determine all other terms, covenants and conditions of | 0025| the bonds; provided that the bonds shall not be issued pursuant to this | 0001| section unless the state board of finance approves the issuance of the | 0002| bonds and the principal amount of and interest rate or maximum net | 0003| effective interest rate on the bonds. | 0004| F. The bonds shall be executed with the manual or facsimile | 0005| signatures of the chairman of the state highway commission, | 0006| countersigned by the state treasurer and attested to by the secretary of | 0007| the state highway commission, with the seal of the state highway | 0008| commission imprinted or otherwise affixed to the bonds. | 0009| G. Proceeds of the bonds may be used to pay expenses | 0010| incurred in the preparation, issuance and sale of the bonds and, | 0011| together with the earnings on the proceeds of the bonds, may be used to | 0012| pay rebate, penalty, interest and other obligations relating to the | 0013| bonds and the proceeds of the bonds under the Internal Revenue Code of | 0014| 1986, as amended. | 0015| H. The bonds may be sold at public or private sale. If sold | 0016| at public sale, a notice of the time and place of sale shall be | 0017| published in a newspaper of general circulation in the state, and in any | 0018| other newspaper determined in the resolution authorizing the issuance of | 0019| the bonds, once each week for two consecutive weeks prior to the date of | 0020| sale. The bonds may be purchased by the state treasurer or state | 0021| investment officer. | 0022| I. This section is full authority for the issuance and sale | 0023| of the bonds, and the bonds shall not be invalid for any irregularity or | 0024| defect in the proceedings for their issuance and sale and shall be | 0025| incontestable in the hands of bona fide purchasers or holders of the | 0001| bond for value. | 0002| J. The bonds shall be legal investments for any person or | 0003| board charged with the investment of public funds and may be accepted as | 0004| security for any deposit of public money and, with the interest thereon, | 0005| are exempt from taxation by the state and any political subdivision or | 0006| agency of the state." | 0007| Section 11. SEVERABILITY.--If any part or application of this act | 0008| is held invalid, the remainder or its application to other situations or | 0009| persons shall not be affected. | 0010| Section 12. EFFECTIVE DATE.--The effective date of the provisions | 0011| of Sections 1 through 3 of this act is July 1, 1996. | 0012| |