0001| HOUSE BILL 855
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| BEN LUJAN
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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| AN ACT
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0011| RELATING TO STATE HIGHWAY BONDS; AUTHORIZING THE GOVERNOR TO
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0012| IMPOSE A HIGHWAY BONDING GASOLINE TAX UNDER CERTAIN CONDITIONS;
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0013| REQUIRING ISSUANCE OF ADDITIONAL STATE HIGHWAY BONDS AND
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0014| INCREASING THE AMOUNT OF STATE HIGHWAY BONDS THAT MAY BE ISSUED
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0015| BY THE STATE HIGHWAY COMMISSION; AMENDING AND ENACTING SECTIONS
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0016| OF THE NMSA 1978.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994,
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0020| Chapter 5, Section 2, as amended by Laws 1995, Chapter 6,
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0021| Section 1 and also by Laws 1995, Chapter 36, Section 1) is
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0022| amended to read:
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0023| "7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--
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0024| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0025| 1978 shall be made to the state aviation fund in an amount
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0001| equal to three and fifty-nine hundredths percent of the gross
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0002| receipts attributable to the sale of fuel specially prepared
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0003| and sold for use in turboprop or jet-type engines as determined
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0004| by the department.
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0005| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0006| 1978 shall be made to the state aviation fund in an amount
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0007| equal to twenty-six hundredths of one percent of [gasoline
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taxes] the gasoline tax, exclusive of penalties and
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0009| interest, collected pursuant to the Gasoline Tax Act."
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0010| Section 2. Section 7-1-6.9 NMSA 1978 (being Laws 1991,
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0011| Chapter 9, Section 11, as amended) is amended to read:
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0012| "7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO
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0013| MUNICIPALITIES AND COUNTIES.--
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0014| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0015| 1978 shall be made in an amount equal to ten and thirty-eight
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0016| hundredths percent of the net receipts attributable to the
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0017| [taxes] gasoline tax, exclusive of penalties and interest,
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0018| imposed by the Gasoline Tax Act.
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0019| B. The amount determined in Subsection A of this
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0020| section shall be distributed as follows:
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0021| (1) ninety percent of the amount shall be paid
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0022| to the treasurers of municipalities and H class counties in the
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0023| proportion that the taxable motor fuel sales in each of the
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0024| municipalities and H class counties bears to the aggregate
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0025| taxable motor fuel sales in all of these municipalities and H
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0001| class counties; and
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0002| (2) ten percent of the amount shall be paid to
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0003| the treasurers of the counties, including H class counties, in
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0004| the proportion that the taxable motor fuel sales outside of
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0005| incorporated municipalities in each of the counties bears to
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0006| the aggregate taxable motor fuel sales outside of incorporated
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0007| municipalities in all of the counties.
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0008| C. This distribution shall be paid into the
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0009| municipal treasury or county general fund for general purposes
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0010| or for any special purposes designated by the governing body of
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0011| the municipality or county. Any municipality or H class county
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0012| that has created or that creates a "street improvement fund" to
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0013| which gasoline tax revenues or distributions are irrevocably
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0014| pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that
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0015| has pledged all or a portion of gasoline tax revenues or
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0016| distributions to the payment of bonds shall receive its
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0017| proportion of the distribution of revenues under this section
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0018| impressed with and subject to these pledges."
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0019| Section 3. Section 7-13-3.1 NMSA 1978 (being Laws 1979,
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0020| Chapter 166, Section 7, as amended) is amended to read:
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0021| "7-13-3.1. GASOLINE INVENTORY TAX--IMPOSITION OF TAX--
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0022| DATE PAYMENT OF TAX DUE.--
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0023| A. A gasoline inventory tax is imposed measured by
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0024| the quantity of gallons of gasoline in the possession of a
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0025| distributor or wholesaler on the day in which an increase in
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0001| the excise tax imposed by Section 7-13-3 NMSA 1978 or the
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0002| initial imposition or increase in the excise tax imposed by
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0003| Section 7-13-3.5 NMSA 1978 is effective. The taxable event is
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0004| the existence of an inventory in the possession of a
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0005| distributor or wholesaler on the day prior to the day in which
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0006| an increase in the excise tax imposed by Section 7-13-3 NMSA
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0007| 1978 or the initial imposition or increase in the excise tax
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0008| imposed by Section 7-13-3.5 NMSA 1978 is effective. The rate
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0009| of the gasoline inventory tax to apply on each gallon of
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0010| gasoline held in inventory by a distributor or wholesaler, as
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0011| provided in Section 7-13-3.2 NMSA 1978, shall be the difference
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0012| between the gasoline [excise] tax rate or the highway
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0013| bonding gasoline tax rate, whichever is applicable, imposed on
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0014| the day prior to the day [in] on which the [gasoline
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excise] applicable tax is increased or initially imposed
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0016| subtracted from the [gasoline excise] applicable tax rate
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0017| imposed on the day that the [gasoline excise] applicable
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0018| tax rate increase or imposition is effective, expressed in
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0019| cents per gallon.
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0020| B. The gasoline inventory tax is to be paid to the
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0021| department on or before the twenty-fifth day of the month
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0022| following the month in which the taxable event occurs."
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0023| Section 4. Section 7-13-3.2 NMSA 1978 (being Laws 1979,
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0024| Chapter 166, Section 8, as amended) is amended to read:
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0025| "7-13-3.2. GASOLINE INVENTORIES.--
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0001| A. On the day prior to the day that the excise tax
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0002| imposed by Section 7-13-3 NMSA 1978 is increased or the excise
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0003| tax imposed by Section 7-13-3.5 NMSA 1978 is initially imposed
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0004| or increased, each distributor, wholesaler and retailer shall
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0005| take inventory of the gallons of gasoline on hand.
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0006| B. Distributors and wholesalers shall report total
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0007| gallons of gasoline in inventory on the day prior to the day
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0008| that an increase in the gasoline tax rate is effective and pay
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0009| any tax due imposed by Section 7-13-3.1 NMSA 1978.
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0010| C. Retailers shall maintain a record of the total
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0011| gallons of gasoline in inventory on the day prior to the day
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0012| that an increase in the gasoline tax rate or the initial
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0013| imposition or an increase in the highway bonding gasoline tax
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0014| rate is effective and shall not increase the price of the
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0015| gasoline sold until the inventory is disposed of in the
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0016| ordinary course of business."
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0017| Section 5. A new section of the Gasoline Tax Act, Section
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0018| 7-13-3.5 NMSA 1978, is enacted to read:
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0019| "7-13-3.5. [NEW MATERIAL] IMPOSITION AND RATE OF
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0020| HIGHWAY BONDING GASOLINE TAX--LIMITATION.--
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0021| A. The governor is authorized, subject to the
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0022| limitations of this section, to impose for the privilege of
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0023| receiving gasoline in this state an excise tax at a rate not to
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0024| exceed two cents ($.02) per gallon of gasoline received in New
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0025| Mexico. The tax may be imposed in one-cent ($.01) increments
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0001| and may be referred to as the "highway bonding gasoline tax".
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0002| The proceeds from the tax shall be used only to secure or pay
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0003| state highway bonds issued pursuant to Subsection C of Section
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0004| 67-3-59.1 NMSA 1978.
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0005| B. The governor may impose any increment of the tax
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0006| authorized by Subsection A of this section only upon a finding
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0007| that the tax increase is necessary because there are
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0008| insufficient revenues available in the state road fund to
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0009| pledge for the issuance of the amounts of state highway bonds
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0010| that:
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0011| (1) are authorized pursuant to Subsection C of
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0012| Section 67-3-59.1 NMSA 1978; and
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0013| (2) are needed to fund statewide road
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0014| improvements that the state highway commission certifies are
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0015| necessary for purposes of safety, commerce and economic
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0016| development.
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0017| C. The tax authorized to be imposed pursuant to
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0018| this section shall become effective only upon July 1 or January
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0019| 1, whichever date occurs first, after the expiration of at
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0020| least three months from the date the governor issues the
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0021| finding pursuant to Subsection B of this section."
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0022| Section 6. Section 7-13-5 NMSA 1978 (being Laws 1971,
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0023| Chapter 207, Section 5, as amended) is amended to read:
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0024| "7-13-5. TAX RETURNS--PAYMENT OF TAX.--Distributors shall
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0025| file gasoline tax and highway bonding gasoline tax returns in
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0001| form and content as prescribed by the secretary on or before
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0002| the twenty-fifth day of the month following the month in which
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0003| gasoline is received in New Mexico. Such returns shall be
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0004| accompanied by payment of the amount of gasoline tax or
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0005| highway bonding gasoline tax due."
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0006| Section 7. Section 7-13-13 NMSA 1978 (being Laws 1971,
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0007| Chapter 207, Section 12, as amended) is amended to read:
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0008| "7-13-13. PERMIT TO PURCHASE DYED GASOLINE AND APPLY FOR
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0009| REFUND OF GASOLINE TAX AND HIGHWAY BONDING GASOLINE TAX ON
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0010| GASOLINE NOT USED IN MOTOR BOATS OR IN MOTOR VEHICLES OPERATED
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0011| ON HIGHWAYS OF THIS STATE.--
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0012| A. Each person who wishes to purchase gasoline dyed
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0013| in accordance with the provisions of Section 7-13-15 NMSA 1978
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0014| and to claim a refund of gasoline tax and highway bonding
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0015| gasoline tax paid on such gasoline under the provisions of
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0016| Section 7-13-14 NMSA 1978 shall apply for and obtain a permit
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0017| to do so from the department. The application for the permit
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0018| shall be in form and content as prescribed by the department.
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0019| B. The secretary may, upon notice and after
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0020| hearing, suspend the gasoline tax and highway bonding gasoline
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0021| tax refund permit of any person who makes any false statement
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0022| on an application for a permit or on a claim for refund made
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0023| under Section 7-13-14 NMSA 1978 who uses gasoline dyed in
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0024| accordance with Section 7-13-15 NMSA 1978 in a motor boat or in
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0025| a vehicle licensed to operate on the highways of this state or
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0001| who violates any other provision of the Gasoline Tax Act. Such
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0002| suspension may be, [in] at the discretion of the secretary,
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0003| for a period of up to one year."
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0004| Section 8. Section 7-13-14 NMSA 1978 (being Laws 1971,
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0005| Chapter 207, Section 13, as amended) is amended to read:
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0006| "7-13-14. CLAIM FOR REFUND OF GASOLINE TAX AND HIGHWAY
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0007| BONDING GASOLINE TAX PAID ON GASOLINE NOT USED IN MOTOR BOATS
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0008| OR IN MOTOR VEHICLES LICENSED TO OPERATE ON HIGHWAYS OF THIS
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0009| STATE.--Upon submission of proof satisfactory to the
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0010| department, the department shall allow a claim for refund of
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0011| gasoline tax and highway bonding gasoline tax paid on dyed
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0012| gasoline purchased and used within six months prior to the
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0013| filing of the claim by holders of permits issued under Section
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0014| 7-13-13 NMSA 1978. The individual purchases of such gasoline,
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0015| other than that to be used as aviation fuel, must have been
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0016| made in quantities of fifty gallons or more. Purchasers of
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0017| aviation fuel may accumulate invoices to reach the minimum
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0018| required for filing a claim for refund. No claim for refund
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0019| may be presented on less than one hundred gallons so purchased.
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0020| The secretary may, by regulation, prescribe the documents
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0021| necessary to support a claim for refund and the invoice and
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0022| sales procedure to be followed by sellers and purchasers of
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0023| gasoline not intended to be used in motor boats or in motor
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0024| vehicles licensed to operate on the highways of this state by
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0025| the motor vehicle division of the department."
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0001| Section 9. Section 67-3-59.1 NMSA 1978 (being Laws 1989,
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0002| Chapter 157, Section 1, as amended) is amended to read:
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0003| "67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS--
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0004| APPROVAL--COUPONS.--
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0005| A. In order to provide funds to finance state
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0006| highway projects, including state highway projects that are
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0007| required for the waste isolation pilot project and are eligible
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0008| for federal reimbursement or payment as authorized by federal
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0009| legislation, the state highway commission is authorized to
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0010| issue bonds from time to time, payable from [the proceeds of
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the collection of gasoline excise taxes and motor vehicle
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registration] federal funds not otherwise obligated that are
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0013| paid into the state road fund and from the proceeds from the
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0014| collection of taxes and fees that are required by law to be
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0015| paid into the state road fund and not otherwise pledged solely
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0016| to the payment of outstanding bonds and debentures.
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0017| B. Except as provided in Subsection C of this
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0018| section, the total aggregate outstanding principal amount of
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0019| bonds issued from time to time pursuant to this section,
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0020| secured by or payable from [the gasoline excise taxes and
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motor vehicle registration fees] federal funds not otherwise
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0022| obligated that are paid into the state road fund and the
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0023| proceeds from the collection of taxes and fees required by law
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0024| to be paid into the state road fund, shall not, without
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0025| additional authorization of the state legislature, exceed one
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0001| hundred fifty million dollars ($150,000,000) at any given time,
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0002| subject to the following provisions:
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0003| (1) the total aggregate outstanding principal
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0004| amount of bonds issued for state highway projects that are
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0005| required for the waste isolation pilot project and are eligible
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0006| for federal reimbursement as authorized by federal legislation
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0007| shall not exceed one hundred million dollars ($100,000,000);
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0008| and
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0009| (2) the total aggregate outstanding principal
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0010| amount of bonds issued for state highway projects other than
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0011| state highway projects that are required for the waste
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0012| isolation pilot project and are eligible for federal
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0013| reimbursement as authorized by federal legislation shall not
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0014| exceed fifty million dollars ($50,000,000).
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0015| C. An amount shall be added to the total aggregate
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0016| outstanding principal amount of bonds authorized for issuance
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0017| by the state highway commission for state highway projects
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0018| secured by or payable from federal funds not otherwise
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0019| obligated and proceeds from the collection of taxes and fees
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0020| required by law to be paid into the state road fund, and from
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0021| this additional authorization, the state highway commission may
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0022| issue the amount of bonds that the commission, subject to the
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0023| provisions of this section, determines can be serviced with an
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0024| amount approximately equal to the net receipts attributable to
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0025| four cents ($.04) of the gasoline tax distributed by law into
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0001| the state road fund and any other receipts distributed by law
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0002| into the state road fund, other than gasoline tax receipts in
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0003| excess of the amount of net receipts attributable to four cents
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0004| ($.04) of the gasoline tax.
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0005| [C.] D. The state highway commission may issue
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0006| bonds to refund other bonds issued pursuant to this section by
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0007| exchange or current or advance refunding.
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0008| [D.] E. Each series of bonds shall have a
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0009| maturity of no more than twenty-five years from the date of
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0010| issuance, provided that bonds issued pursuant to Subsection C
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0011| of this section shall have a maturity of no more than ten years
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0012| from the date of issuance. The state highway commission shall
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0013| determine all other terms, covenants and conditions of the
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0014| bonds; provided that the bonds shall not be issued pursuant to
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0015| this section unless the state board of finance approves the
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0016| issuance of the bonds and the principal amount of and interest
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0017| rate or maximum net effective interest rate on the bonds.
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0018| [E.] F. The bonds shall be executed with the
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0019| manual or facsimile signatures of the chairman of the state
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0020| highway commission, countersigned by the state treasurer and
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0021| attested to by the secretary of the state highway commission,
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0022| with the seal of the state highway commission imprinted or
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0023| otherwise affixed to the bonds.
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0024| [F.] G. Proceeds of the bonds may be used to
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0025| pay expenses incurred in the preparation, issuance and sale of
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0001| the bonds and, together with the earnings on the proceeds of
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0002| the bonds, may be used to pay rebate, penalty, interest and
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0003| other obligations relating to the bonds and the proceeds of the
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0004| bonds under the Internal Revenue Code of 1986, as amended.
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0005| [G.] H. The bonds may be sold at public or
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0006| private sale. If sold at public sale, a notice of the time and
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0007| place of sale shall be published in a newspaper of general
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0008| circulation in the state, and in any other newspaper determined
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0009| in the resolution authorizing the issuance of the bonds, once
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0010| each week for two consecutive weeks prior to the date of sale.
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0011| The bonds may be purchased by the state treasurer or state
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0012| investment officer.
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0013| [H.] I. This section is full authority for the
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0014| issuance and sale of the bonds, and the bonds shall not be
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0015| invalid for any irregularity or defect in the proceedings for
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0016| their issuance and sale and shall be incontestable in the hands
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0017| of bona fide purchasers or holders of the bond for value.
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0018| [I.] J. The bonds shall be legal investments
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0019| for any person or board charged with the investment of public
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0020| funds and may be accepted as security for any deposit of public
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0021| money and, with the interest thereon, are exempt from taxation
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0022| by the state and any political subdivision or agency of the
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0023| state."
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0024| Section 10. SEVERABILITY.--If any part or application of
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0025| this act is held invalid, the remainder or its application to
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0001| other situations or persons shall not be affected.
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0002| Section 11. EFFECTIVE DATE.--The effective date of the
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0003| provisions of this act is July 1, 1997.
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