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|
SPONSOR: |
Hanosh |
DATE TYPED: |
01/28/02 |
HB |
278 |
||
|
SHORT TITLE: |
One-time Waiver for Veterans Vehicle Fees |
SB |
|
||||
|
|
ANALYST: |
Hayes |
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APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or Non-Rec |
Fund Affected |
||
|
FY02 |
FY03 |
FY02 |
FY03 |
|
|
|
|
NFI |
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
REVENUE
|
Estimated Revenue |
Subsequent Years
Impact |
Recurring or Non-Rec |
Fund Affected |
|
|
FY02 |
FY03 |
|
|
|
|
|
($4,658.0) |
Minimal |
Recurring |
State Road Fund (66.541% of MVD Registration) |
|
|
($1,404.0) |
Minimal
|
Recurring |
County Governments (20.064% of MVD Registration) |
|
|
($375.0) |
Minimal |
Recurring |
Municipal Governments (5.358% of MVD Registration) |
|
|
($563.0) |
Minimal |
Recurring |
County & Municipal Governments (8.037% of
MVD Registration) |
|
|
(*) |
Minimal |
Recurring |
MVD/TRD (special plate revenue) |
|
|
(*) |
Minimal |
Recurring |
Armed Forces Veterans License Fund (special
plate revenue) |
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to HJR2
Taxation and Revenue Department (TRD)
New Mexico State Highway and Transportation
Department (SHTD)
LFC files
SUMMARY
Synopsis
of Bill
House Bill 278 amends Section 66-3-412.1 NMSA
1978 and proposes that veterans be allowed a one-time waiver of motor vehicle
registration fees. The waiver would
also apply to the basic registration fee as well as supplemental fees
associated with the special registration plates for armed forces veterans.
The effective date of HB278 is July 1, 2002.
Significant
Issues
1. According
to the New Mexico Veterans Service Commission, approximately 175,000 veterans
currently live in New Mexico. If it is
assumed that each veteran claims the waiver against one vehicle and the
registration fees average $40 per vehicle, then the total revenue loss would be
approximately $7 million ($40 x 175,000).
Note that the veteran may also apply the waiver against whichever one of
their vehicles has the highest registration fee.
2. As
indicated in the Technical Issues section below, however, if the proposed
measure is interpreted to apply to registration fees for all vehicles owned by
veterans, the measure’s fiscal impact could easily exceed $14 million. Since the waivers would be offered on a
one-time only basis, most of the losses would likely occur during the 2003
fiscal year, although a small recurring component would exist.
3. Of
the $7 fee for special motorcycle plates, the entire amount is retained by MVD
to cover the cost of issuing the plates.
The fiscal impact of this provision is likely to be minimal; probably
less than $1,000. For example: 100
plates x $7 per plate or $700.00. Of
the $15 fee for special veterans plates, $7 is retained by MVD to defray cost
of issuing the plates. The Armed Forces
Veterans License Fund receives the remaining $8. Fees from this distribution are used by the State Director of
Veterans Affairs for the purpose of extending services to rural areas of New
Mexico. Approximately 16,000 of these
types of plates have been issued over the last eight-year period. Assuming 2,000 are issued annually, the
resulting revenue loss to MVD would be 2,000 x $7 = or $14,000.00, and the loss
to the Armed Forces Veterans License Fund would total $16,000.00. Revenue losses from a one-time waiver of the
plate fees would tend to be consistently recurring.
Besides the issues outlined above, if MVD
experiences problems tracking the one-time waiver or if veterans successfully argue
that the waiver should be allowed one time on each of their vehicles,
the fiscal impact might be twice as much.
(*)
from Revenue Table above: It is difficult to project how many veterans who do
not currently have special armed forces veteran registration plates would be
encouraged to acquire those plates due to the waiver of the $7 or $15 fee. The fiscal impact is unknown.
ADMINISTRATIVE IMPLICATIONS
With its current system, the Motor Vehicle
Division of the Taxation and Revenue Department may have difficultly tracking
whether an individual has used the one-time waiver. Revisions would probably be required to both the vehicle record
and the owner (driver) record in the MVD database and to the on-line inquiry
software.
RELATIONSHIP
House Joint Resolution 2 proposes amending
Article 8, Section 5 of the Constitution of New Mexico to apply the “Exemption”
from property taxation to all honorably discharged veterans and to phase in an
additional exemption of two thousand dollars ($2,000.00).
TECHNICAL ISSUES
The bill refers to a “one-time waiver of fee;”
however, it is unclear whether that waiver is applicable to each vehicle
or if it is a one-time per person waiver. This needs to be clarified in the language because it has a
direct effect on the waiver process and, most importantly, on the total amount
of revenue loss per year.
POSSIBLE QUESTIONS
1. What is the goal or rationale for proposing a one-time veteran’s waiver to vehicle registration fees?
[1]Begin typing on the * in replace mode. Do not add or delete spaces.