SENATE BILL 114
52nd legislature - STATE OF NEW MEXICO - first session, 2015
INTRODUCED BY
Ron Griggs
FOR THE TRANSPORTATION INFRASTRUCTURE REVENUE SUBCOMMITTEE
AN ACT
RELATING TO TAXATION; AUTHORIZING A MUNICIPALITY OR COUNTY TO IMPOSE A TAX ON SPECIAL FUEL; REPEALING A SECTION OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-24A-1 NMSA 1978 (being Laws 1978, Chapter 182, Section 1, as amended) is amended to read:
"7-24A-1. SHORT TITLE.--Chapter 7, Article 24A NMSA 1978 may be cited as the "County and Municipal Gasoline and Special Fuel Tax Act"."
SECTION 2. Section 7-24A-2 NMSA 1978 (being Laws 1991, Chapter 156, Section 2) is amended to read:
"7-24A-2. DEFINITIONS.--As used in the County and Municipal Gasoline and Special Fuel Tax Act:
[A. "county" means a class A county or an H class county;
B.] A. "biodiesel" means a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and that meets the American society for testing and materials specifications for biodiesel fuel, B100 or B99 blend stock for distillate fuels;
B. "blended biodiesel" means a diesel engine fuel that contains at least two percent biodiesel;
C. "gallon" means the quantity of liquid necessary to fill a standard United States gallon liquid measure or that same quantity adjusted to a temperature of sixty degrees Fahrenheit at the election of any distributor, but a distributor shall report on the same basis for a period of at least one year;
D. "gasoline" means any flammable liquid hydrocarbon used primarily as fuel for the propulsion of motor vehicles, motorboats or aircraft except for diesel-engine fuel, kerosene, liquefied petroleum gas, compressed or liquefied natural gas and products specially prepared and sold for use in aircraft propelled by turbo-prop or jet-type engines;
E. "governing body" means the city council or city commission of a city, the board of trustees of a town or village or the board of county commissioners of a [class A county or an H class] county;
[C. "municipality" means any incorporated city, town or village, whether incorporated under general act, special act or special charter, located within a class A county or an H class county;
D.] F. "highway" means every road, highway, thoroughfare, street or way, including toll roads, generally open to the use of the public as a matter of right for the purpose of motor vehicle travel regardless of whether it is temporarily closed for the purpose of construction, reconstruction, maintenance or repair;
G. "motor vehicle" means any self-propelled vehicle or device that is either subject to registration under Section 66-3-1 NMSA 1978 or used or that may be used on the public highways in whole or in part for the purpose of transporting persons or property and includes any connected trailer or semitrailer;
H. "person" means:
(1) any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate or other entity, including any utility owned or operated by a county, municipality or other political subdivision of the state; or
(2) to the extent permitted by law, the United States or any agency or instrumentality thereof or the state of New Mexico or any political subdivision thereof;
I. "special fuel" means any diesel-engine fuel, biodiesel, blended biodiesel or kerosene used for the generation of power to propel a motor vehicle, except for gasoline, liquefied petroleum gas, compressed or liquefied natural gas and products specially prepared and sold for use in aircraft propelled by turbo-prop or jet engines;
[E.] J. "transit route" means a road, highway or street normally used in the operation of a public transportation system; and
[F.] K. "vehicle emission inspection program" means a vehicle emission inspection program designed to reduce pollutants emitted by motor vehicles of less than ten thousand pounds pursuant to a county or municipal ordinance."
SECTION 3. Section 7-24A-3 NMSA 1978 (being Laws 1978, Chapter 182, Section 3, as amended) is amended to read:
"7-24A-3. USE OF PROCEEDS.--
A. The proceeds of a county or municipal gasoline tax shall be used for bridge and road projects or public transportation related trails and for expenses of purchasing, maintaining and operating transit operations and facilities, for the operation of a transit authority established by the Municipal Transit Law or as provided in the County and Municipal Gasoline and Special Fuel Tax Act, for operation of a vehicle emission inspection program or for road, street or highway construction, repair or maintenance in the county or municipality. The proceeds of a county or municipal gasoline tax may be pledged for the payment of bonds issued pursuant to the County and Municipal Gasoline and Special Fuel Tax Act. B. The proceeds of a county or municipal special fuel tax shall be used for bridge and road projects or for road, street or highway construction, repair or maintenance in the county or municipality. The proceeds of a county or municipal special fuel tax may be pledged for the payment of bonds issued pursuant to the County and Municipal Gasoline and Special Fuel Tax Act; provided that the bonds were issued to enable the county or municipality to acquire land, buildings or other equipment required for bridge, road, street or highway construction, repair or maintenance or for refunding bonds previously issued for such purposes.
C. A county or municipality may engage in the business of transportation of passengers and property within the political subdivision by whatever means it may decide and may acquire cars, motor buses and other equipment necessary for carrying on the business. It may acquire land and erect buildings and equip them with all necessary machinery and facilities for operation, maintenance, modification, repair and storage of any buses, cars, trucks or other equipment needed. It may do all things necessary for the acquisition and conduct of the business of public transportation.
[B.] D. A governing body may enact ordinances and resolutions and promulgate rules as it may deem necessary and proper for the conduct of the business of transportation and for fixing and collecting all fares, rates and charges for services rendered.
[C. Any] E. A county or municipality engaging in the business of transportation may extend any system of transportation to points outside its boundaries where necessary and incidental to furnishing efficient transportation to points within the county or municipality.
[D.] F. A governing body may lease any system of transportation in whole or in part to any person who will contract to operate it according to the rules, time tables and other requirements established by the governing body.
[E. Any] G. A county or municipality may furnish transportation service to areas located outside its boundaries, provided that prior contracts have been entered into with the county or municipality in which the areas are located covering the schedules, rates, service and other pertinent matters before initiation of such service.
[F.] H. The power of eminent domain is granted to a participating county or municipality for the purpose of acquiring lands and buildings necessary to provide efficient public transit or a vehicle emission inspection program to be exercised in the manner provided by law.
[G.] I. A county or municipality, as an operating entity, may enter into contracts for special transportation service, charter buses, advertising and any other function that a private enterprise operating a public transit facility could do or perform for revenue.
[H.] J. A governing body may spend [any] public funds to pay the costs of operation of public transit or a vehicle emission inspection program if revenues of the system prove to be insufficient.
[I.] K. A county or municipality is authorized to enter into binding agreements with the United States or any of its officers or agencies or the state or any of its officers or agencies or any combination of agencies, departments or officers of both the United States and the state for planning, developing, modernizing, studying, improving, financing, operating or otherwise affecting public transit; to accept any loans, grants or payments from any of these agencies; and to make any commitments or assume any obligations required by any of these agencies as a condition of receiving the benefits thereof."
SECTION 4. A new section of the County and Municipal Gasoline and Special Fuel Tax Act is enacted to read:
"[NEW MATERIAL] COUNTY SPECIAL FUEL TAX--AUTHORIZATION--IMPOSITION--RATE.--
A. The majority of the members of the governing body of a county may adopt an ordinance imposing a tax of up to two cents ($.02) per gallon on special fuel sold at retail within the boundaries of the county on all property not lying within the boundaries of a municipality and upon which taxes are imposed in accordance with the Special Fuels Supplier Tax Act. The tax imposed by this section is to be referred to as the "county special fuel tax".
B. If the governing body of a county adopts an ordinance imposing a county special fuel tax, the governing body shall submit the question of levying the tax to the qualified electors in the county residing outside the boundaries of a municipality.
C. The county special fuel tax may be imposed in increments of one cent ($.01) per gallon up to a maximum of two cents ($.02) per gallon. The amount of the tax and the specific purposes for which the proceeds shall be used shall be stated in the ordinance adopted by the governing body of the county as provided in Subsection A of this section."
SECTION 5. Section 7-24A-6 NMSA 1978 (being Laws 1978, Chapter 182, Section 6, as amended) is amended to read:
"7-24A-6. COUNTY GASOLINE TAX OR SPECIAL FUEL TAX--PROCEDURE FOR ADOPTION OF ORDINANCE--ELECTION.--
A. The ordinance imposing a county gasoline tax or county special fuel tax shall not go into effect until after an election is held and a simple majority of the qualified electors of the county residing outside the boundaries of a municipality [vote] votes in favor of imposing the [county gasoline] tax. The governing body of the county shall provide for an election on the question of imposing [a county gasoline] the tax within sixty days after the day the ordinance is adopted. Such question may be submitted to the electors and voted upon as a separate question at any general election or at any special election called for that purpose by the governing body. The election upon the question shall be called, held, conducted and canvassed in substantially the same manner as provided by law for general elections. If the question of imposing [a county gasoline] the tax fails, the governing body shall not again propose [a county gasoline tax] an ordinance for that tax for a period of one year after the election.
B. Within five days after passage of a county gasoline tax or county special fuel tax ordinance, the governing body of the county shall submit a certified copy of the ordinance to the taxation and revenue department."
SECTION 6. Section 7-24A-6.1 NMSA 1978 (being Laws 1986, Chapter 74, Section 1, as amended) is amended to read:
"7-24A-6.1. COUNTY-WIDE GASOLINE TAX--AUTHORIZATION--IMPOSITION--RATE--ELECTION.--
A. A county-wide gasoline tax may be imposed on each gallon of gasoline sold at retail within the county in increments of one cent ($.01) per gallon up to a maximum of two cents ($.02) per gallon for the purpose of funding a vehicle emissions inspection program and other programs as specified in Subsection D of this section when the governing bodies of a county and a municipality adopt identical ordinances submitting the question to the qualified electors in the county in a joint election.
B. The procedures of the County and Municipal Gasoline and Special Fuel Tax Act shall apply unless otherwise provided in this section.
C. The ordinance shall not go into effect until after a joint election is held pursuant to Section 7-24A-21 NMSA 1978 and a simple majority of the qualified electors of the county voting on the issue vote in favor of imposing a county-wide gasoline tax. If the ordinance is approved by a majority of the qualified electors of the county voting on the issue, the gasoline tax shall be imposed county-wide, both within and outside the boundaries of any municipality within the county.
D. If the qualified electors of the county vote in favor of an ordinance imposing a county-wide gasoline tax pursuant to Subsection C of Section 7-24A-21 NMSA 1978 and any proceeds of the tax are dedicated by the ordinance to a vehicle emissions inspection program, then the proceeds of the tax imposed shall be used first for the vehicle emissions inspection program and the balance shall be used for other environmental programs such as water quality or air quality programs. That balance shall be distributed to the municipality and the county based on the proportions that the population of the municipality and the population of the county outside the boundaries of the municipality bear to the total population of the county. The municipality and county shall reimburse the motor vehicle division of the taxation and revenue department for actual costs incurred in administering any plan that involves the motor vehicle division in the enforcement of denial of motor vehicle registration for noncompliance with a vehicle emissions inspection program. The costs reimbursed are appropriated to the motor vehicle division for that purpose."
SECTION 7. Section 7-24A-7.1 NMSA 1978 (being Laws 1990, Chapter 88, Section 8) is amended to read:
"7-24A-7.1. REGISTRATION REQUIRED.--Each person selling gasoline or special fuel at retail in a county [which imposes a county or county-wide gasoline tax] or in a municipality [which] that imposes a [municipal gasoline] tax pursuant to the County and Municipal Gasoline and Special Fuel Tax Act shall register with the county or the municipality, as appropriate, as a seller of gasoline at retail or a seller of special fuel at retail, or both, as appropriate."
SECTION 8. Section 7-24A-8 NMSA 1978 (being Laws 1978, Chapter 182, Section 8, as amended) is amended to read:
"7-24A-8. COLLECTION OF COUNTY GASOLINE TAX AND COUNTY SPECIAL FUEL TAX.--The county shall collect the county gasoline tax and county special fuel tax imposed by the County and Municipal Gasoline and Special Fuel Tax Act. Every person subject to the imposition of the county gasoline tax or county special fuel tax shall file a return on forms provided by and with the information required by the county and shall pay the tax due on or before the twenty-fifth day of the month following the month in which the gasoline or special fuel is sold at retail within the boundaries of the county."
SECTION 9. A new section of the County and Municipal Gasoline and Special Fuel Tax Act is enacted to read:
"[NEW MATERIAL] MUNICIPAL SPECIAL FUEL TAX--AUTHORIZATION--IMPOSITION--RATE.--
A. The majority of the members of the governing body of a municipality may adopt an ordinance imposing a tax of up to two cents ($.02) per gallon on special fuel sold at retail within the boundaries of the municipality and upon which taxes are imposed in accordance with the Special Fuels Supplier Tax Act. The tax imposed by this section is to be referred to as the "municipal special fuel tax".
B. If the governing body of a municipality adopts an ordinance imposing a municipal special fuel tax, the governing body shall submit the question of levying the tax to the qualified electors in the municipality.
C. The municipal special fuel tax may be imposed in increments of one cent ($.01) per gallon up to a maximum of two cents ($.02) per gallon. The amount of the tax and the specific purposes for which the proceeds shall be used shall be stated in the ordinance adopted by the governing body of the municipality as provided in Subsection A of this section."
SECTION 10. Section 7-24A-11 NMSA 1978 (being Laws 1978, Chapter 182, Section 11, as amended) is amended to read:
"7-24A-11. MUNICIPAL GASOLINE TAX OR SPECIAL FUEL TAX--PROCEDURE FOR ADOPTION OF ORDINANCE--ELECTION.--
A. The ordinance imposing a municipal gasoline tax or municipal special fuel tax shall not go into effect until after an election is held and a simple majority of the qualified electors of the municipality voting on the question [vote] votes in favor of imposing the [municipal gasoline] tax. The governing body of the municipality shall provide for an election on the question of imposing the [municipal gasoline] tax within sixty days after the day the ordinance is adopted. Such question may be submitted to the electors and voted upon as a separate question at any regular or special election or at any special election called for that purpose by the governing body. The election upon the question shall be called, held, conducted and canvassed in substantially the same manner as provided by law for special municipal elections as provided in the Municipal Election Code. If the question of imposing [a municipal gasoline] the tax fails, the governing body shall not again propose [a municipal gasoline tax] an ordinance for that tax for a period of one year after the election.
B. After passage of a municipal gasoline tax or municipal special fuel tax ordinance, the governing body of the municipality shall submit a certified copy of the ordinance to the taxation and revenue department."
SECTION 11. Section 7-24A-12 NMSA 1978 (being Laws 1978, Chapter 182, Section 12, as amended) is amended to read:
"7-24A-12. COLLECTION OF MUNICIPAL GASOLINE TAX AND MUNICIPAL SPECIAL FUEL TAX.--The municipality shall collect the municipal gasoline tax and municipal special fuel tax imposed by the County and Municipal Gasoline and Special Fuel Tax Act. Every person subject to the imposition of the municipal gasoline tax or municipal special fuel tax shall file a return on forms provided by and with the information required by the municipality and shall pay the tax due on or before the twenty-fifth day of the month following the month in which the gasoline or special fuel is sold at retail within the boundaries of the municipality."
SECTION 12. Section 7-24A-14 NMSA 1978 (being Laws 1978, Chapter 182, Section 14, as amended) is amended to read:
"7-24A-14. BOND ORDINANCE.--
A. The governing body may adopt an ordinance providing for issuance of bonds to enable the county or municipality to acquire land, buildings, buses or other equipment required for public transit, a vehicle emission inspection program or for road, street or highway construction, repair or maintenance or for refunding bonds previously issued for such purpose or any such purposes.
B. The bonds are payable solely from a pledge of:
(1) gross income derived by the county or municipality from the transit facilities or vehicle emission inspection facilities financed with the proceeds and other transit facilities not so financed; provided that when gross revenues are so pledged, the county or municipality may apply to the payment of the expense of maintaining and operating the transit facilities, the gross revenues of which are so pledged, the county's or municipality's revenues derived from sources other than the proceeds of ad valorem taxes and may, in the proceedings authorizing the issue of bonds, covenant and agree to apply to the payment of the maintenance and operation expenses so much of the revenues as may be necessary for such purposes or as may be specified in the proceedings;
(2) income derived from franchises granted by the governing body of a county or municipality;
(3) contributions, grants or other financial assistance from the state or federal government or any other source;
(4) county or municipal gasoline tax or special fuel tax revenue; or
(5) any one or a combination of these sources.
C. The ordinance is irrepealable as long as any indebtedness on the bonds is unpaid by the county or municipality."
SECTION 13. Section 7-24A-17 NMSA 1978 (being Laws 1978, Chapter 182, Section 17) is amended to read:
"7-24A-17. CONSTRUCTION.--The County and Municipal Gasoline and Special Fuel Tax Act is full authority for authorization and issuance of bonds. If any proceeding involving the validity and enforceability of any bond or its security, any bond reciting in substance that it was issued by the county or municipality to aid in financing public transit or transportation projects or any other purpose authorized by the County and Municipal Gasoline and Special Fuel Tax Act is conclusively presumed to have been issued for a county or municipal transit or transportation project or other purpose in accordance with that act."
SECTION 14. Section 7-24A-21 NMSA 1978 (being Laws 1978, Chapter 182, Section 21, as amended) is amended to read:
"7-24A-21. JOINT ELECTION.--
A. If an election is held by one or more municipalities within a county or a municipality and the county concerning adoption of the county and municipal gasoline or special fuel taxes, such election may be held jointly by such county and municipality, or municipalities, and may be held at any election except a primary election.
B. The election may be conducted using paper ballots. Consolidated voter precincts may be used if the board of county commissioners determines that such a consolidation would provide for a cost-effective and efficient election process and such consolidation would [insure] ensure the integrity of the election process.
C. If a joint election is held by a municipality and a county pursuant to Section 7-24A-6.1 NMSA 1978 and a simple majority of the qualified electors of the county voting on the issue [vote] votes in favor of imposing the county-wide gasoline tax, the tax shall be [imposed by the division and] collected pursuant to the County and Municipal Gasoline and Special Fuel Tax Act."
SECTION 15. Section 7-24B-4 NMSA 1978 (being Laws 1987, Chapter 45, Section 13, as amended) is amended to read:
"7-24B-4. SPECIAL COUNTY HOSPITAL GASOLINE TAX--AUTHORIZATION--IMPOSITION--RATE.--
A. The majority of the members of the governing body of a county may adopt an ordinance imposing a tax of up to two cents ($.02) a gallon on all gasoline sold at retail in the county and upon which gasoline taxes are imposed in accordance with the Gasoline Tax Act. The tax imposed by this section is to be referred to as the "special county hospital gasoline tax" and is in addition to the tax imposed in the Gasoline Tax Act.
B. The special county hospital gasoline tax may be imposed by the governing body of a county regardless of whether the county has imposed a tax on gasoline pursuant to the County and Municipal Gasoline and Special Fuel Tax Act.
C. The special county hospital gasoline tax may be imposed in increments of one cent ($.01) per gallon up to a maximum of two cents ($.02) per gallon. The amount of the tax and the specific purposes for which the proceeds shall be used shall be stated in the ordinance adopted by the governing body of the county.
D. The special county hospital gasoline tax shall be imposed for a period of not more than five years from the effective date of the ordinance imposing the tax. This authorization may be extended for additional five-year periods provided all requirements for enactment of the first ordinance are met."
SECTION 16. Section 66-6-25 NMSA 1978 (being Laws 1978, Chapter 35, Section 360, as amended) is amended to read:
"66-6-25. REGISTRATION BY COUNTY OR MUNICIPALITY PROHIBITED.--
A. No county or municipality shall require registration or charge fees for any vehicle subject to registration under the Motor Vehicle Code.
B. Notwithstanding the provisions of Subsection A of this section, a county or municipality designated as an agent pursuant to Section 66-2-14.1 NMSA 1978 may impose a fee in an amount not to exceed five dollars ($5.00) per year in addition to any other registration fee required. This fee shall not be imposed if the county or municipality has imposed a gasoline tax pursuant to the County and Municipal Gasoline and Special Fuel Tax Act, the proceeds of which are used to fund a vehicle emission inspection program. Any money collected as a result of the imposition of an additional fee pursuant to this subsection shall be used only to fund a vehicle emission inspection program."
SECTION 17. REPEAL.--Section 7-24A-7 NMSA 1978 (being Laws 1978, Chapter 182, Section 7, as amended) is repealed.
SECTION 18. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.
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