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| SPONSOR: | Rawson | DATE TYPED: | 02/15/00 | HB | |||
| SHORT TITLE: | Limit Use of Motor Fuels Tax Revenue | SB | SJR 10 | ||||
| ANALYST: | Williams | ||||||
|
Tax |
Estimated Revenue |
Recurring or Non-Rec |
Fund Affected |
| FY03 | |||
| Gasoline | $ (200.0) | Recurring | Motorboat Fuel Fund |
| Gasoline | $ (400.0) | Recurring | State Aviation Board |
| GRT & Comp | $ (150.0) | Recurring | State General Fund * |
| Compensating | $ (13.0) | Recurring | Small Cities Assistance Fund |
| Compensating | $ (13.0) | Recurring | Small Counties Assistance Fund |
| Fuel | ** | Recurring | Local Govt Rd Fund/Munic Arterial |
| Fuel | *** | Recurring | State Road Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
* The state general fund loss is associated with gross receipts and compensating taxes. The compensating tax portion amounts to
about $110.0. The GRT portion has not been estimated but is assumed to be less than $50.0.
**The Local Government Road Fund and municipal Arterial Program are administered by SHTD as grant programs for local
government road projects. (Also *** below)
***Increased state and local road revenues of bout $776.0 have not been shown separately since the terms of the amendment may
force reallocation between state and local entities in the enabling legislation.
Relates to SB 109
SOURCES OF INFORMATION
LFC Files
State Highway and Transportation Department (SHTD)
Underground Storage Tank Bureau (USTB)
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
The bill amends the New Mexico Constitution, Article 8, such that state taxes on gasoline and other fuel would be used solely by the SHTD or equivalent for local construction and maintenance or for distribution to municipalities or counties for a similar purpose. The effective date of the restriction would be July 1, 2002. The measure would be presented to the public for approval at the next general election or a special election called for this purpose.
Significant Issues
SHTD reports the current long-range plan shows need for improvement, including bond projects, that total $4.2 billion from FY1999 to 2004. Attached figure shows distribution of 1999/2000 road user revenues. Needs for improvement to municipal, county or tribal road systems are not included in these totals.
TRD and ED note the funding mechanism for the corrective action fund, the petroleum products loading fee, is not a tax, but is imposed for "the privilege of loading" and should not be impacted by this legislation.
FISCAL IMPLICATIONS
The potential fiscal impacts are shown on the chart.
ADMINISTRATIVE IMPLICATIONS
TRD notes "very substantial" administrative burden if the proposal applies to gross receipts and compensation tax, because that system does not track specific products. If approved by voters, but existing laws are not changed, TRD would suspend any questionable revenue distributions and place funds in a suspense fund.
OTHER SUBSTANTIVE ISSUES
TRD notes virtually all state road fund money not otherwise restricted is currently pledged to state highway debentures and Article IX, Section 16 of the Constitution prohibits any decrease in revenue pledged toward those bonds.
TECHNICAL ISSUES
TRD notes it would be relatively easy to circumvent the proposed restriction.
Enabling legislation would be required if the constitutional change is approved by the voters.
AW/gm
Attachment