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SPONSOR: | Griego | DATE TYPED: | 02/19/01 | HB | |||
SHORT TITLE: | Jet Fuel Gross Receipts Deduction | SB | 631 | ||||
ANALYST: | Eaton |
Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
FY01 | FY02 | |||
$ (250.0) | Recurring | General Fund | ||
$ (250.0 to 680.0) See Narrative | Recurring | Aviation Fund | ||
$ (460.0) | Recurring | Local Govt. | ||
$ (12,000.0) | Recurring | Federal Funds |
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
New Mexico State Highway and Transportation Department (NMSHTD) Aviation Division
SUMMARY
Synopsis of Bill
This expands 1993's 40 percent deduction for aviation jet fuel to 100 percent. No gross receipts or compensating tax will be imposed on the sale of aviation jet fuel.
FISCAL IMPLICATIONS
The Taxation and Revenue Department (TRD) report that the full year impact to the general fund would be $270.0. Additional impacts would affect the the aviation fund and local government revenues by $270.0 and $460.0, respectively. TRD report that depending on the accuracy of current reporting data, which is in question, the impact of this bill could be larger by a factor of two.
The New Mexico State Highway and Transportation Department (NMSHTD) Aviation Division report that the impact of this bill would reduce the Aviation fund by $680.0. More importantly, the Aviation Division reports that this loss would result in the loss of federal matching funds (estimated between 9-1 and 19-1). This would result in a $12 million estimated loss in Airport Improvement Program funds from the Federal Aviation Administration (FAA) for projects on over 60 airports in New Mexico.
ADMINISTRATIVE IMPLICATIONS
Minimal
TECHNICAL ISSUES
The Taxation and Revenue Department indicate that the distribution outlined in 7-1-6.7 (to the state aviation fund) would become moot.
JBE/ar