0001| SENATE BILL 809
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| JOHN ARTHUR SMITH
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0006|
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO TAXATION; INCREASING THE GASOLINE TAX AND SPECIAL
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0013| FUEL EXCISE TAX RATES CONTINGENT UPON CERTIFICATION BY THE
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0014| GOVERNOR THAT THE TAX INCREASE IS NECESSARY FOR ISSUANCE OF
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0015| STATE HIGHWAY BONDS TO PROVIDE ADDITIONAL REVENUE FOR STATEWIDE
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0016| ROAD IMPROVEMENTS; AUTHORIZING THE ISSUANCE OF AN ADDITIONAL
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0017| AMOUNT OF STATE HIGHWAY BONDS; AMENDING SECTIONS OF THE NMSA
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0018| 1978.
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0019|
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0020| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0021| Section 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994,
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0022| Chapter 5, Section 2, as amended by Laws 1995, Chapter 6,
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0023| Section 1 and also by Laws 1995, Chapter 36, Section 1) is
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0024| amended to read:
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0025| "7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--
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0001| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0002| 1978 shall be made to the state aviation fund in an amount equal
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0003| to three and fifty-nine hundredths percent of the gross receipts
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0004| attributable to the sale of fuel specially prepared and sold for
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0005| use in turboprop or jet-type engines as determined by the
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0006| department.
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0007| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0008| 1978 shall be made to the state aviation fund in an amount equal
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0009| to [twenty-six hundredths] two-tenths of one percent of
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0010| gasoline taxes, exclusive of penalties and interest, collected
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0011| pursuant to the Gasoline Tax Act."
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0012| Section 2. Section 7-1-6.8 NMSA 1978 (being Laws 1983,
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0013| Chapter 211, Section 13, as amended) is amended to read:
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0014| "7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A
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0015| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made
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0016| to the motorboat fuel tax fund in an amount equal to [thirteen
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hundredths] one-tenth of one percent of the net receipts
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0018| attributable to the gasoline tax."
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0019| Section 3. Section 7-1-6.9 NMSA 1978 (being Laws 1991,
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0020| Chapter 9, Section 11, as amended) is amended to read:
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0021| "7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES
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0022| AND COUNTIES.--
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0023| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0024| 1978 shall be made in an amount equal to [ten and thirty-eight
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hundredths] eight and two-tenths percent of the net receipts
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0001| attributable to the taxes, exclusive of penalties and interest,
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0002| imposed by the Gasoline Tax Act.
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0003| B. The amount determined in Subsection A of this
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0004| section shall be distributed as follows:
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0005| (1) ninety percent of the amount shall be paid
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0006| to the treasurers of municipalities and H class counties in the
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0007| proportion that the taxable motor fuel sales in each of the
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0008| municipalities and H class counties bears to the aggregate
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0009| taxable motor fuel sales in all of these municipalities and H
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0010| class counties; and
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0011| (2) ten percent of the amount shall be paid to
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0012| the treasurers of the counties, including H class counties, in
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0013| the proportion that the taxable motor fuel sales outside of
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0014| incorporated municipalities in each of the counties bears to the
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0015| aggregate taxable motor fuel sales outside of incorporated
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0016| municipalities in all of the counties.
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0017| C. This distribution shall be paid into the
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0018| municipal treasury or county general fund for general purposes
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0019| or for any special purposes designated by the governing body of
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0020| the municipality or county. Any municipality or H class county
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0021| that has created or that creates a "street improvement fund" to
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0022| which gasoline tax revenues or distributions are irrevocably
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0023| pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that
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0024| has pledged all or a portion of gasoline tax revenues or
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0025| distributions to the payment of bonds shall receive its
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0001| proportion of the distribution of revenues under this section
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0002| impressed with and subject to these pledges."
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0003| Section 4. Section 7-1-6.10 NMSA 1978 (being Laws 1983,
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0004| Chapter 211, Section 15, as amended by Laws 1995, Chapter 6,
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0005| Section 4 and also by Laws 1995, Chapter 16, Section 11) is
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0006| amended to read:
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0007| "7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--
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0008| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0009| 1978 shall be made to the state road fund in an amount equal to
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0010| the net receipts attributable to the taxes, surcharges,
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0011| penalties and interest imposed pursuant to the Gasoline Tax Act
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0012| and to the taxes, surtaxes, fees, penalties and interest imposed
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0013| pursuant to the Special Fuels Tax Act, the Special Fuels
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0014| Supplier Tax Act and the Alternative Fuel Tax Act less:
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0015| (1) the amount distributed to the state
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0016| aviation fund pursuant to Subsection [C] B of Section
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0017| 7-1-6.7 NMSA 1978;
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0018| (2) the amount distributed to the motorboat
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0019| fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;
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0020| (3) the amount distributed to municipalities
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0021| and counties pursuant to Subsection A of Section 7-1-6.9 NMSA
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0022| 1978;
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0023| (4) the amount distributed to the county
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0024| government road fund pursuant to Section 7-1-6.19 NMSA 1978;
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0025| (5) the amount distributed to the [corrective
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action] local governments road fund pursuant to Section
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0002| [7-1-6.25] 7-1-6.39 NMSA 1978;
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0003| (6) the amount distributed to the
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0004| municipalities pursuant to Section 7-1-6.27 NMSA 1978; and
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0005| (7) the amount distributed to the municipal
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0006| arterial program [and] of the local governments road fund
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0007| pursuant to Section 7-1-6.28 NMSA 1978 [and
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(8) the amount distributed to the general fund
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pursuant to Section 7-1-6.37 NMSA 1978].
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0010| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0011| 1978 shall be made to the state road fund in an amount equal to
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0012| the net receipts attributable to the taxes, fees, interest and
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0013| penalties from the Weight Distance Tax Act."
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0014| Section 5. Section 7-1-6.19 NMSA 1978 (being Laws 1991,
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0015| Chapter 9, Section 15, as amended) is amended to read:
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0016| "7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND
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0017| CREATED.--
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0018| A. There is created in the state treasury the
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0019| "county government road fund".
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0020| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0021| 1978 shall be made to the county government road fund in an
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0022| amount equal to [five and seventy-six hundredths] four and
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0023| forty-five hundredths percent of the net receipts attributable
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0024| to the gasoline tax."
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0025| Section 6. Section 7-1-6.27 NMSA 1978 (being Laws 1991,
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0001| Chapter 9, Section 20, as amended) is amended to read:
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0002| "7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--
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0003| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0004| 1978 shall be made to municipalities for the purposes and
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0005| amounts specified in this section in an aggregate amount equal
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0006| to [five and seventy-six hundredths] four and forty-five
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0007| hundredths percent of the net receipts attributable to the
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0008| gasoline tax.
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0009| B. The distribution authorized in this section shall
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0010| be used for the following purposes:
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0011| (1) reconstructing, resurfacing, maintaining,
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0012| repairing or otherwise improving existing alleys, streets, roads
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0013| or bridges, or any combination of the foregoing; or laying off,
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0014| opening, constructing or otherwise acquiring new alleys,
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0015| streets, roads or bridges, or any combination of the foregoing;
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0016| provided that any of the foregoing improvements may include, but
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0017| are not limited to, the acquisition of rights of way; and
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0018| (2) for expenses of purchasing, maintaining and
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0019| operating transit operations and facilities, for the operation
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0020| of a transit authority established by the municipal transit law
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0021| and for the operation of a vehicle emission inspection program.
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0022| A municipality may engage in the business of the transportation
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0023| of passengers and property within the political subdivision by
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0024| whatever means the municipality may decide and may acquire cars,
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0025| trucks, motor buses and other equipment necessary for operating
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0001| the business. A municipality may acquire land, erect buildings
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0002| and equip the buildings with all the necessary machinery and
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0003| facilities for the operation, maintenance, modification, repair
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0004| and storage of the cars, trucks, motor buses and other equipment
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0005| needed. A municipality may do all things necessary for the
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0006| acquisition and the conduct of the business of public
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0007| transportation.
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0008| C. For the purposes of this section:
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0009| (1) "computed distribution amount" means the
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0010| distribution amount calculated for a municipality for a month
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0011| pursuant to Paragraph (2) of Subsection D of this section prior
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0012| to any adjustments to the amount due to the provisions of
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0013| Subsections E and F of this section;
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0014| (2) "floor amount" means four hundred seventeen
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0015| dollars ($417);
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0016| (3) "floor municipality" means a municipality
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0017| whose computed distribution amount is less than the floor
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0018| amount; and
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0019| (4) "full distribution municipality" means a
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0020| municipality whose population at the last federal decennial
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0021| census was at least two hundred thousand.
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0022| D. Subject to the provisions of Subsections E and F
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0023| of this section, each municipality shall be distributed a
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0024| portion of the aggregate amount distributable under this section
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0025| in an amount equal to the greater of:
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0001| (1) the floor amount; or
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0002| (2) eighty-five percent of the aggregate amount
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0003| distributable under this section times a fraction, the numerator
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0004| of which is the municipality's reported taxable gallons of
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0005| gasoline for the immediately preceding state fiscal year and the
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0006| denominator of which is the reported total taxable gallons for
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0007| all municipalities for the same period.
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0008| E. Fifteen percent of the aggregate amount
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0009| distributable under this section shall be referred to as the
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0010| "redistribution amount". Beginning in August 1990, and each
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0011| month thereafter, from the redistribution amount there shall be
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0012| taken an amount sufficient to increase the computed distribution
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0013| amount of every floor municipality to the floor amount. In the
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0014| event that the redistribution amount is insufficient for this
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0015| purpose, the computed distribution amount for each floor
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0016| municipality shall be increased by an amount equal to the
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0017| redistribution amount times a fraction, the numerator of which
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0018| is the difference between the floor amount and the
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0019| municipality's computed distribution amount and the denominator
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0020| of which is the difference between the product of the floor
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0021| amount multiplied by the number of floor municipalities and the
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0022| total of the computed distribution amounts for all floor
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0023| municipalities.
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0024| F. If a balance remains after the redistribution
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0025| amount has been reduced pursuant to Subsection E of this
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0001| section, there shall be added to the computed distribution
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0002| amount of each municipality that is neither a full distribution
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0003| municipality nor a floor municipality an amount that equals the
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0004| balance of the redistribution amount times a fraction, the
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0005| numerator of which is the computed distribution amount of the
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0006| municipality and the denominator of which is the sum of the
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0007| computed distribution amounts of all municipalities that are
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0008| neither full distribution municipalities nor floor
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0009| municipalities."
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0010| Section 7. Section 7-1-6.28 NMSA 1978 (being Laws 1991,
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0011| Chapter 9, Section 22, as amended) is amended to read:
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0012| "7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF
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0013| LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section
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0014| 7-1-6.1 NMSA 1978 shall be made to the municipal arterial
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0015| program of the local governments road fund created in Section
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0016| 67-3-28.2 NMSA 1978 in an amount equal to [one and forty-four
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hundredths] one and eleven hundredths percent of the net
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0018| receipts attributable to the gasoline tax."
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0019| Section 8. Section 7-1-6.39 NMSA 1978 (being Laws 1995,
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0020| Chapter 6, Section 9) is amended to read:
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0021| "7-1-6.39. DISTRIBUTION OF SPECIAL FUEL EXCISE TAX TO
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0022| LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section
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0023| 7-1-6.1 NMSA 1978 shall be made to the local governments road
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0024| fund in an amount equal to [eleven and eleven hundredths]
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0025| nine and fifty-two hundredths percent of the net receipts
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0001| attributable to the taxes, exclusive of penalties and interest,
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0002| from the special fuel excise tax imposed by the Special Fuels
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0003| Supplier Tax Act."
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0004| Section 9. Section 7-13-3 NMSA 1978 (being Laws 1971,
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0005| Chapter 207, Section 3, as amended) is amended to read:
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0006| "7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS
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0007| "GASOLINE TAX".--
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0008| A. For the privilege of receiving gasoline in this
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0009| state, there is imposed an excise tax at a rate provided in
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0010| Subsection B of this section on each gallon of gasoline
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0011| received in New Mexico.
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0012| B. The tax imposed by Subsection A of this section
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0013| shall be [seventeen cents ($.17)] twenty-two cents ($.22)
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0014| per gallon received in New Mexico.
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0015| C. The tax imposed by this section may be called the
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0016| "gasoline tax"."
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0017| Section 10. That version of Section 7-13-3 NMSA 1978
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0018| (being Laws 1995, Chapter 6, Section 11) is amended to read:
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0019| "7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS
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0020| "GASOLINE TAX".--
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0021| A. For the privilege of receiving gasoline in this
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0022| state, there is imposed an excise tax at a rate provided in
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0023| Subsection B of this section on each gallon of gasoline
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0024| received in New Mexico.
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0025| B. The tax imposed by Subsection A of this section
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0001| shall be [sixteen cents ($.16)] twenty-one cents ($.21) per
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0002| gallon received in New Mexico.
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0003| C. The tax imposed by this section may be called the
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0004| "gasoline tax"."
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0005| Section 11. Section 7-16A-3 NMSA 1978 (being Laws 1992,
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0006| Chapter 51, Section 3, as amended) is amended to read:
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0007| "7-16A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS
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0008| SPECIAL FUEL EXCISE TAX.--
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0009| A. For the privilege of receiving or using special
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0010| fuel in this state, there is imposed an excise tax at a rate
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0011| provided in Subsection B of this section on each gallon of
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0012| special fuel received in New Mexico.
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0013| B. The tax imposed by Subsection A of this section
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0014| shall be [eighteen cents ($.18)] twenty-one cents ($.21) per
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0015| gallon of special fuel received or used in New Mexico.
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0016| C. The tax imposed by this section may be called the
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0017| "special fuel excise tax"."
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0018| Section 12. Section 67-3-59.1 NMSA 1978 (being Laws 1989,
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0019| Chapter 157, Section 1, as amended) is amended to read:
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0020| "67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS--
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0021| APPROVAL--COUPONS.--
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0022| A. In order to provide funds to finance state
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0023| highway projects, including state highway projects that are
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0024| required for the waste isolation pilot project and are eligible
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0025| for federal reimbursement as authorized by federal legislation,
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0001| the state highway commission is authorized to issue bonds from
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0002| time to time, payable from the proceeds of the collection of
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0003| gasoline excise taxes and motor vehicle registration fees that
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0004| are required by law to be paid into the state road fund and not
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0005| otherwise pledged solely to the payment of outstanding bonds and
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0006| debentures.
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0007| B. Except as provided in Subsection C of this
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0008| section, the total aggregate outstanding principal amount of
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0009| bonds issued from time to time pursuant to this section, secured
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0010| by or payable from the gasoline excise taxes and motor vehicle
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0011| registration fees, shall not, without additional authorization
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0012| of the state legislature, exceed one hundred fifty million
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0013| dollars ($150,000,000) at any given time, subject to the
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0014| following provisions:
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0015| (1) the total aggregate outstanding principal
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0016| amount of bonds issued for state highway projects that are
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0017| required for the waste isolation pilot project and are eligible
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0018| for federal reimbursement as authorized by federal legislation
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0019| shall not exceed one hundred million dollars ($100,000,000); and
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0020| (2) the total aggregate outstanding principal
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0021| amount of bonds issued for state highway projects other than
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0022| state highway projects that are required for the waste isolation
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0023| pilot project and are eligible for federal reimbursement as
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0024| authorized by federal legislation shall not exceed fifty million
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0025| dollars ($50,000,000).
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0001| C. An additional five hundred million dollars
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0002| ($500,000,000) shall be added to the total aggregate outstanding
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0003| principal amount of bonds authorized for issuance by the state
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0004| highway commission for state highway projects to be secured by
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0005| or payable from the gasoline excise taxes, motor vehicle
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0006| registration fees and fourteen percent of the special fuel
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0007| excise tax revenues required by law to be paid into the state
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0008| road fund. From this authorization, the state highway
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0009| commission shall issue the amount of bonds that the commission,
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0010| subject to the provisions of this section, determines can be
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0011| serviced with an amount approximately equal to the net receipts
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0012| attributable to five cents ($.05) of the gasoline tax and three
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0013| cents ($.03) of the special fuel excise tax distributed by law
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0014| into the state road fund.
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0015| [C.] D. The state highway commission may issue
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0016| bonds to refund other bonds issued pursuant to this section by
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0017| exchange or current or advance refunding.
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0018| [D.] E. Each series of bonds shall have a
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0019| maturity of no more than twenty-five years from the date of
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0020| issuance; provided, bonds issued pursuant to Subsection C of
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0021| this section shall have a maturity of no more than ten years
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0022| from the date of issuance. The state highway commission shall
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0023| determine all other terms, covenants and conditions of the
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0024| bonds; provided that the bonds shall not be issued pursuant to
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0025| this section unless the state board of finance approves the
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0001| issuance of the bonds and the principal amount of and interest
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0002| rate or maximum net effective interest rate on the bonds.
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0003| [E.] F. The bonds shall be executed with the
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0004| manual or facsimile signatures of the chairman of the state
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0005| highway commission, countersigned by the state treasurer and
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0006| attested to by the secretary of the state highway commission,
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0007| with the seal of the state highway commission imprinted or
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0008| otherwise affixed to the bonds.
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0009| [F.] G. Proceeds of the bonds may be used to pay
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0010| expenses incurred in the preparation, issuance and sale of the
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0011| bonds and, together with the earnings on the proceeds of the
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0012| bonds, may be used to pay rebate, penalty, interest and other
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0013| obligations relating to the bonds and the proceeds of the bonds
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0014| under the Internal Revenue Code of 1986, as amended.
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0015| [G.] H. The bonds may be sold at public or
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0016| private sale. If sold at public sale, a notice of the time and
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0017| place of sale shall be published in a newspaper of general
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0018| circulation in the state, and in any other newspaper determined
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0019| in the resolution authorizing the issuance of the bonds, once
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0020| each week for two consecutive weeks prior to the date of sale.
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0021| The bonds may be purchased by the state treasurer or state
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0022| investment officer.
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0023| [H.] I. This section is full authority for the
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0024| issuance and sale of the bonds, and the bonds shall not be
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0025| invalid for any irregularity or defect in the proceedings for
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0001| their issuance and sale and shall be incontestable in the hands
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0002| of bona fide purchasers or holders of the bond for value.
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0003| [I.] J. The bonds shall be legal investments for
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0004| any person or board charged with the investment of public funds
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0005| and may be accepted as security for any deposit of public money
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0006| and, with the interest thereon, are exempt from taxation by the
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0007| state and any political subdivision or agency of the state."
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0008| Section 13. EFFECTIVE DATE--CONTINGENCY.--The provisions
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0009| of this act shall become effective only upon certification by
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0010| the governor no later than August 31, 1996 that a fuel tax
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0011| increase is needed to issue state highway bonds to raise
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0012| additional revenues for statewide road improvements that are
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0013| necessary for purposes of safety, commerce and economic
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0014| development. If the governor does not certify the need for the
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0015| tax increase by August 31, 1996, the provisions of this act
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0016| shall not become effective. If the governor certifies the need
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0017| for the tax increase on or before August 31, 1996, the
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0018| provisions of this act shall take effect as follows:
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0019| A. the effective date of the provisions of Sections
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0020| 9, 11 and 12 of this act is October 1, 1996; and
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0021| B. the effective date of the provisions of Sections
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0022| 1 through 8 of this act is November 1, 1996.
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0023|
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0024|
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0025|
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0001| FORTY-SECOND LEGISLATURE
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0002| SECOND SESSION, 1996
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0003|
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0004|
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0005| FEBRUARY 1, 1996
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0006|
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0007| Mr. President:
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0008|
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0009| Your COMMITTEES' COMMITTEE, to whom has been referred
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0010|
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0011| SENATE BILL 809
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0012|
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0013| has had it under consideration and finds same to be GERMANE, PURSUANT
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0014| TO CONSTITUTIONAL PROVISIONS, and thence referred to the WAYS AND
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0015| MEANS COMMITTEE.
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0016|
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0017| Respectfully submitted,
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0018|
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0019|
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0020|
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0021|
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0022| __________________________________
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0023| SENATOR MANNY M. ARAGON, Chairman
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0024|
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0025|
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0001|
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0002| Adopted_______________________ Not Adopted_______________________
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0003| (Chief Clerk) (Chief Clerk)
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0004|
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0005|
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0006| Date ________________________
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0007|
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0008|
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0009|
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0010| S0809CC1
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0011|
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