45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO THE DISTRIBUTION OF GASOLINE TAX REVENUES; INTERCEPTING CERTAIN DISTRIBUTIONS TO CERTAIN MUNICIPALITIES THAT HAVE VIOLATED AN AGREEMENT WITH THE STATE HIGHWAY AND TRANSPORTATION DEPARTMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-1-6.9 NMSA 1978 (being Laws 1991, Chapter 9, Section 11, as amended) is amended to read:

"7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES AND COUNTIES.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made in an amount equal to ten and thirty-eight hundredths percent of the net receipts attributable to the taxes, exclusive of penalties and interest, imposed by the Gasoline Tax Act.

B. Except as provided in Subsection D of this section, the amount determined in Subsection A of this section shall be distributed as follows:

(1) ninety percent of the amount shall be paid to the treasurers of municipalities and H class counties in the proportion that the taxable motor fuel sales in each of the municipalities and H class counties bears to the aggregate taxable motor fuel sales in all of these municipalities and H class counties; and

(2) ten percent of the amount shall be paid to the treasurers of the counties, including H class counties, in the proportion that the taxable motor fuel sales outside of incorporated municipalities in each of the counties bears to the aggregate taxable motor fuel sales outside of incorporated municipalities in all of the counties.

C. [This] The distribution pursuant to Subsection B of this section shall be paid into a separate road fund in the municipal treasury or county road fund for expenditure only for construction, reconstruction, resurfacing or other improvement or maintenance of public roads, streets, alleys or bridges, including right-of-way and materials acquisition. Money distributed pursuant to this section may be used by a municipality or county to provide matching funds for projects subject to cooperative agreements entered into with the state highway and transportation department pursuant to Section 67-3-28 NMSA 1978. Any municipality or H class county that has created or that creates a "street improvement fund" to which gasoline tax revenues or distributions are irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that has pledged all or a portion of gasoline tax revenues or distributions to the payment of bonds shall receive its proportion of the distribution of revenues under this section impressed with and subject to these pledges.

D. For a municipality with a population, as shown by the 1990 federal decennial census, of greater than six thousand five hundred and located in a class B county with a population, as shown by the 1990 federal decennial census, of greater than forty-five thousand and less than forty-eight thousand, in lieu of the distribution to that municipality pursuant to Subsection B of this section, an equal amount shall be distributed to the state road fund. A distribution pursuant to this subsection shall be subject to the following provisions:

(1) the distribution to the state road fund shall continue until the secretary of highway and transportation certifies to the secretary of taxation and revenue that:

(a) the total amount distributed to the state road fund pursuant to this subsection and Subsection G of Section 7-1-6.27 NMSA 1978 has reached two hundred thousand dollars ($200,000); or

(b) the municipality is in compliance with all agreements between the municipality and the state highway and transportation department;

(2) after a certification made pursuant to Paragraph (1) of this subsection, distributions to the municipality shall again be made pursuant to Subsection B of this section; and

(3) if, prior to the first distribution made to the state road fund pursuant to this subsection, the municipality has irrevocably pledged gasoline tax revenues or distributions pursuant to Sections 3-34-1 through 3-34-4 NMSA 1978 or has pledged all or a portion of gasoline tax revenues to the payment of bonds, the distribution pursuant to this subsection shall be reduced by the amount pledged; provided that no additional debt, secured by gasoline tax revenues or distributions, shall be incurred by the municipality until a certification is made pursuant to Paragraph (1) of this subsection."

Section 2. Section 7-1-6.27 NMSA 1978 (being Laws 1991, Chapter 9, Section 20, as amended) is amended to read:

"7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities for the purposes and amounts specified in this section in an aggregate amount equal to five and seventy-six hundredths percent of the net receipts attributable to the gasoline tax.

B. The distribution authorized in this section shall be used for the following purposes:

(1) reconstructing, resurfacing, maintaining, repairing or otherwise improving existing alleys, streets, roads or bridges, or any combination of the foregoing; or laying off, opening, constructing or otherwise acquiring new alleys, streets, roads or bridges, or any combination of the foregoing; provided that any of the foregoing improvements may include, but are not limited to, the acquisition of rights of way;

(2) to provide matching funds for projects subject to cooperative agreements with the state highway and transportation department pursuant to Section 67-3-28 NMSA 1978; and

(3) for expenses of purchasing, maintaining and operating transit operations and facilities, for the operation of a transit authority established by the municipal transit law and for the operation of a vehicle emission inspection program. A municipality may engage in the business of the transportation of passengers and property within the political subdivision by whatever means the municipality may decide and may acquire cars, trucks, motor buses and other equipment necessary for operating the business. A municipality may acquire land, erect buildings and equip the buildings with all the necessary machinery and facilities for the operation, maintenance, modification, repair and storage of the cars, trucks, motor buses and other equipment needed. A municipality may do all things necessary for the acquisition and the conduct of the business of public transportation.

C. For the purposes of this section:

(1) "computed distribution amount" means the distribution amount calculated for a municipality for a month pursuant to Paragraph (2) of Subsection D of this section prior to any adjustments to the amount due to the provisions of Subsections E and F of this section;

(2) "floor amount" means four hundred seventeen dollars ($417);

(3) "floor municipality" means a municipality whose computed distribution amount is less than the floor amount; and

(4) "full distribution municipality" means a municipality whose population at the last federal decennial census was at least two hundred thousand.

D. Subject to the provisions of Subsections E, [and] F and G of this section, each municipality shall be distributed a portion of the aggregate amount distributable under this section in an amount equal to the greater of:

(1) the floor amount; or

(2) eighty-five percent of the aggregate amount distributable under this section times a fraction, the numerator of which is the municipality's reported taxable gallons of gasoline for the immediately preceding state fiscal year and the denominator of which is the reported total taxable gallons for all municipalities for the same period.

E. Fifteen percent of the aggregate amount distributable under this section shall be referred to as the "redistribution amount". Beginning in August 1990, and each month thereafter, from the redistribution amount there shall be taken an amount sufficient to increase the computed distribution amount of every floor municipality to the floor amount. In the event that the redistribution amount is insufficient for this purpose, the computed distribution amount for each floor municipality shall be increased by an amount equal to the redistribution amount times a fraction, the numerator of which is the difference between the floor amount and the municipality's computed distribution amount and the denominator of which is the difference between the product of the floor amount multiplied by the number of floor municipalities and the total of the computed distribution amounts for all floor municipalities.

F. If a balance remains after the redistribution amount has been reduced pursuant to Subsection E of this section, there shall be added to the computed distribution amount of each municipality that is neither a full distribution municipality nor a floor municipality an amount that equals the balance of the redistribution amount times a fraction, the numerator of which is the computed distribution amount of the municipality and the denominator of which is the sum of the computed distribution amounts of all municipalities that are neither full distribution municipalities nor floor municipalities.

G. For a municipality with a population, as shown by the 1990 federal decennial census, of greater than six thousand five hundred and located in a class B county with a population, as shown by the 1990 federal decennial census, of greater than forty-five thousand and less than forty-eight thousand, in lieu of the distribution to that municipality pursuant to Subsections D, E and F of this section, an equal amount shall be distributed to the state road fund. A distribution pursuant to this subsection shall be subject to the following provisions:

(1) the distribution to the state road fund shall continue until the secretary of highway and transportation certifies to the secretary of taxation and revenue that:

(a) the total amount distributed to the state road fund pursuant to this subsection and Subsection D of Section 7-1-6.9 NMSA 1978 has reached two hundred thousand dollars ($200,000); or

(b) the municipality is in compliance with all agreements between the municipality and the state highway and transportation department;

(2) after a certification made pursuant to Paragraph (1) of the subsection, distributions to the municipality shall again be made pursuant to Subsections D, E and F of this section; and

(3) if, prior to the first distribution made to the state road fund pursuant to this subsection, the municipality has irrevocably pledged all or a portion of gasoline tax revenues to the payment of bonds, then the distribution pursuant to this subsection shall be reduced by the amount pledged; provided that no additional debt, secured by gasoline tax revenues or distributions, shall be incurred by the municipality until a certification is made pursuant to Paragraph (1) of this subsection."