Master FIR (1988)

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Larranaga		DATE TYPED:	03/05/01		HB	341/aHTC
SHORT TITLE:		Intercept Gas Tax Revenue to Certain Cities				SB
					ANALYST:		Williams

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY01	FY02	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
$ (20.0)	$ (180.0)		Non-Recurring	City of Belen
$ 20.0	$ 180.0		Non-Recurring	State Highway and Transportation Dept.

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Taxation and Revenue Department (TRD)

State Highway and Transportation Department (SHTD)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of HTC Amendments

The House Transportation Committee amendments remove the condition that the intercept occurs if the municipalities violate an agreement with SHTD.

Synopsis of Original Bill

The bill changes the gasoline tax distribution for a qualifying municipality. This change would be occur for a municipality:

1) with a population of greater than 605 thousand and located in a class B county with a population between 45 and 48 thousand as shown in the 1990 Census and

2) that violated an agreement with the SHTD.

Two portions of gasoline tax revenue would be redirected to the SHTD until that Department certifies that $200.0 has been diverted or until the municipality is in compliance with all agreements between the municipality and the SHTD.

The bill also allows the municipality to meet previous bond payments or pledges, which will be deducted from the $200.0 distribution. The bill does not contain an effective date.

Significant Issues

Effectively, the qualifying municipality is the city of Belen.

FISCAL IMPLICATIONS

The bill would reduce revenues of the City of Belen by $20.0 in FY01 and $180.0 in FY02, and the SHTD would receive these revenues.

ADMINISTRATIVE IMPLICATIONS

TRD expresses concerns regarding administering on-going monthly tax intercepts based on disputes between jurisdictions and state agencies.

AW/ar