0001| HOUSE BILL 305 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| DAVID P. SILVA | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO TAXATION; AUTHORIZING THE IMPOSITION OF A HIGHWAY | 0012| BONDING GASOLINE TAX CONTINGENT UPON A REDUCTION IN THE | 0013| FEDERAL EXCISE TAX ON GASOLINE. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994, | 0017| Chapter 5, Section 2, as amended by Laws 1995, Chapter 6, | 0018| Section 1 and also by Laws 1995, Chapter 36, Section 1) is | 0019| amended to read: | 0020| "7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.-- | 0021| A. A distribution pursuant to Section 7-1-6.1 NMSA | 0022| 1978 shall be made to the state aviation fund in an amount | 0023| equal to three and fifty-nine hundredths percent of the gross | 0024| receipts attributable to the sale of fuel specially prepared | 0025| and sold for use in turboprop or jet-type engines as | - 1 - 0001| determined by the department. | 0002| B. A distribution pursuant to Section 7-1-6.1 NMSA | 0003| 1978 shall be made to the state aviation fund in an amount | 0004| equal to twenty-six hundredths of one percent of ~~[gasoline~~ | 0005| ~~taxes]~~ the net receipts, exclusive of penalties and | 0006| interest, ~~[collected pursuant to the Gasoline Tax Act]~~ | 0007| attributable to the gasoline tax." | 0008| Section 2. Section 7-1-6.9 NMSA 1978 (being Laws 1991, | 0009| Chapter 9, Section 11, as amended) is amended to read: | 0010| "7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO | 0011| MUNICIPALITIES AND COUNTIES.-- | 0012| A. A distribution pursuant to Section 7-1-6.1 NMSA | 0013| 1978 shall be made in an amount equal to ten and thirty-eight | 0014| hundredths percent of the net receipts ~~[attributable to the~~ | 0015| ~~taxes]~~, exclusive of penalties and interest, ~~[imposed by the~~ | 0016| ~~Gasoline Tax Act]~~ attributable to the gasoline tax. | 0017| B. The amount determined in Subsection A of this | 0018| section shall be distributed as follows: | 0019| (1) ninety percent of the amount shall be | 0020| paid to the treasurers of municipalities and H class counties | 0021| in the proportion that the taxable motor fuel sales in each of | 0022| the municipalities and H class counties bears to the aggregate | 0023| taxable motor fuel sales in all of these municipalities and H | 0024| class counties; and | 0025| (2) ten percent of the amount shall be paid | - 2 - 0001| to the treasurers of the counties, including H class counties, | 0002| in the proportion that the taxable motor fuel sales outside of | 0003| incorporated municipalities in each of the counties bears to | 0004| the aggregate taxable motor fuel sales outside of incorporated | 0005| municipalities in all of the counties. | 0006| C. This distribution shall be paid into the | 0007| municipal treasury or county general fund for general purposes | 0008| or for any special purposes designated by the governing body | 0009| of the municipality or county. Any municipality or H class | 0010| county that has created or that creates a "street improvement | 0011| fund" to which gasoline tax revenues or distributions are | 0012| irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA | 0013| 1978 or that has pledged all or a portion of gasoline tax | 0014| revenues or distributions to the payment of bonds shall | 0015| receive its proportion of the distribution of revenues under | 0016| this section impressed with and subject to these pledges." | 0017| Section 3. Section 7-13-3.1 NMSA 1978 (being Laws 1979, | 0018| Chapter 166, Section 7, as amended) is amended to read: | 0019| "7-13-3.1. GASOLINE INVENTORY TAX--IMPOSITION OF TAX-- | 0020| DATE PAYMENT OF TAX DUE.-- | 0021| A. A gasoline inventory tax is imposed measured by | 0022| the quantity of gallons of gasoline in the possession of a | 0023| distributor or wholesaler on the day ~~[in]~~ on which an | 0024| increase in the excise tax imposed by Section 7-13-3 NMSA 1978 | 0025| or the initial imposition or increase in the excise tax | - 3 - 0001| imposed by Section 7-13-3.6 NMSA 1978 is effective. The | 0002| taxable event is the existence of an inventory in the | 0003| possession of a distributor or wholesaler on the day prior to | 0004| the day ~~[in]~~ on which an increase in the excise tax | 0005| imposed by Section 7-13-3 NMSA 1978 or the initial imposition | 0006| of or increase in the excise tax imposed by Section 7-13-3.6 | 0007| NMSA 1978 is effective. The rate of the gasoline inventory | 0008| tax to apply on each gallon of gasoline held in inventory by a | 0009| distributor or wholesaler, as provided in Section 7-13-3.2 | 0010| NMSA 1978, shall be the difference between the gasoline | 0011| ~~[excise]~~ tax rate or the highway bonding gasoline tax | 0012| rate, whichever is applicable, imposed on the day prior to the | 0013| day ~~[in]~~ on which the ~~[gasoline excise]~~ applicable tax | 0014| is increased or initially imposed subtracted from the | 0015| ~~[gasoline excise]~~ applicable tax rate imposed on the day | 0016| that the ~~[gasoline excise]~~ applicable tax rate increase | 0017| or imposition is effective, expressed in cents per gallon. | 0018| B. The gasoline inventory tax is to be paid to the | 0019| department on or before the twenty-fifth day of the month | 0020| following the month in which the taxable event occurs." | 0021| Section 4. Section 7-13-3.2 NMSA 1978 (being Laws 1979, | 0022| Chapter 166, Section 8, as amended) is amended to read: | 0023| "7-13-3.2. GASOLINE INVENTORIES.-- | 0024| A. On the day prior to the day that the excise tax | 0025| imposed by Section 7-13-3 NMSA 1978 is increased or the | - 4 - 0001| excise tax imposed by Section 7-13-3.6 NMSA 1978 is initially | 0002| imposed or increased, each distributor, wholesaler and | 0003| retailer shall take inventory of the gallons of gasoline on | 0004| hand. | 0005| B. Distributors and wholesalers shall report total | 0006| gallons of gasoline in inventory on the day prior to the day | 0007| that an increase in the gasoline tax rate or the initial | 0008| imposition of or an increase in the highway bonding gasoline | 0009| tax rate is effective and pay any tax due imposed by Section | 0010| 7-13-3.1 NMSA 1978. | 0011| C. Retailers shall maintain a record of the total | 0012| gallons of gasoline in inventory on the day prior to the day | 0013| that an increase in the gasoline tax rate or the initial | 0014| imposition of or an increase in the highway bonding gasoline | 0015| tax rate is effective and shall not increase the price of the | 0016| gasoline sold until the inventory is disposed of in the | 0017| ordinary course of business." | 0018| Section 5. A new section of the Gasoline Tax Act, | 0019| Section 7-13-3.6 NMSA 1978, is enacted to read: | 0020| "7-13-3.6. [NEW MATERIAL] IMPOSITION AND RATE OF | 0021| HIGHWAY BONDING GASOLINE TAX--CONTINGENCY.-- | 0022| A. In the event that, pursuant to federal law, the | 0023| federal excise tax imposed on gasoline is reduced from the | 0024| rate imposed on January 1, 1998, there shall be imposed for | 0025| the privilege of receiving gasoline in this state an excise | - 5 - 0001| tax at a rate per gallon of gasoline received in New Mexico | 0002| equal to that reduction in the federal excise tax on gasoline. | 0003| B. The tax authorized to be imposed pursuant to | 0004| Subsection A of this section shall become effective only upon | 0005| July 1 or January 1, whichever date occurs first, after the | 0006| expiration of at least three months from the date the | 0007| reduction in the rate of the federal excise tax on gasoline is | 0008| effective. | 0009| C. The tax imposed in Subsection A of this section | 0010| may be referred to as the "highway bonding gasoline tax". | 0011| Section 6. Section 7-13-5 NMSA 1978 (being Laws 1971, | 0012| Chapter 207, Section 5, as amended) is amended to read: | 0013| "7-13-5. TAX RETURNS--PAYMENT OF TAX.--Distributors | 0014| shall file gasoline tax and highway bonding gasoline tax | 0015| returns in form and content as prescribed by the secretary on | 0016| or before the twenty-fifth day of the month following the | 0017| month in which gasoline is received in New Mexico. Such | 0018| returns shall be accompanied by payment of the amount of | 0019| gasoline tax or highway bonding gasoline tax due." | 0020| Section 7. Section 7-13-13 NMSA 1978 (being Laws 1971, | 0021| Chapter 207, Section 12, as amended) is amended to read: | 0022| "7-13-13. PERMIT TO PURCHASE DYED GASOLINE AND APPLY FOR | 0023| REFUND OF ~~[GASOLINE]~~ TAX ON GASOLINE NOT USED IN MOTOR BOATS | 0024| OR IN MOTOR VEHICLES OPERATED ON HIGHWAYS OF THIS STATE.-- | 0025| A. Each person who wishes to purchase gasoline | - 6 - 0001| dyed in accordance with the provisions of Section 7-13-15 NMSA | 0002| 1978 and to claim a refund of gasoline tax and highway | 0003| bonding gasoline tax paid on such gasoline under the | 0004| provisions of Section 7-13-14 NMSA 1978 shall apply for and | 0005| obtain a permit to do so from the department. The application | 0006| for the permit shall be in form and content as prescribed by | 0007| the department. | 0008| B. The secretary may, upon notice and after | 0009| hearing, suspend the gasoline tax and highway bonding | 0010| gasoline tax refund permit of any person who makes any false | 0011| statement on an application for a permit or on a claim for | 0012| refund made under Section 7-13-14 NMSA 1978 who uses gasoline | 0013| dyed in accordance with Section 7-13-15 NMSA 1978 in a motor | 0014| boat or in a vehicle licensed to operate on the highways of | 0015| this state or who violates any other provision of the Gasoline | 0016| Tax Act. Such suspension may be, in the discretion of the | 0017| secretary, for a period of up to one year." | 0018| Section 8. Section 7-13-14 NMSA 1978 (being Laws 1971, | 0019| Chapter 207, Section 13, as amended) is amended to read: | 0020| "7-13-14. CLAIM FOR REFUND OF ~~[GASOLINE]~~ TAX PAID ON | 0021| GASOLINE NOT USED IN MOTOR BOATS OR IN MOTOR VEHICLES LICENSED | 0022| TO OPERATE ON HIGHWAYS OF THIS STATE.--Upon submission of | 0023| proof satisfactory to the department, the department shall | 0024| allow a claim for refund of gasoline tax and highway bonding | 0025| gasoline tax paid on dyed gasoline purchased and used within | - 7 - 0001| six months prior to the filing of the claim by holders of | 0002| permits issued under Section 7-13-13 NMSA 1978. The | 0003| individual purchases of such gasoline, other than that to be | 0004| used as aviation fuel, must have been made in quantities of | 0005| fifty gallons or more. Purchasers of aviation fuel may | 0006| accumulate invoices to reach the minimum required for filing a | 0007| claim for refund. No claim for refund may be presented on | 0008| less than one hundred gallons so purchased. The secretary | 0009| may, by regulation, prescribe the documents necessary to | 0010| support a claim for refund and the invoice and sales procedure | 0011| to be followed by sellers and purchasers of gasoline not | 0012| intended to be used in motor boats or in motor vehicles | 0013| licensed to operate on the highways of this state by the motor | 0014| vehicle division of the department." | 0015| Section 9. EFFECTIVE DATE.--The effective date of the | 0016| provisions of this act is the July 1 or January 1 that occurs | 0017| first after the expiration of three months after the secretary | 0018| of taxation and revenue certifies that the federal excise tax | 0019| on gasoline has been reduced from the rate imposed on January | 0020| 1, 1998. | 0021| |