46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO FINANCE; INCREASING THE MOTOR VEHICLE EXCISE TAX; DISTRIBUTING A PORTION OF THE MOTOR VEHICLE EXCISE TAX REVENUES TO A SPECIAL ROAD IMPROVEMENT FUND TO BE USED BY THE STATE HIGHWAY AND TRANSPORTATION DEPARTMENT FOR ROAD IMPROVEMENT PROJECTS SPECIFICALLY AUTHORIZED BY THE LEGISLATURE; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

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

Section 1. Section 7-14-4 NMSA 1978 (being Laws 1988, Chapter 73, Section 14) is amended to read:

"7-14-4. DETERMINATION OF AMOUNT OF MOTOR VEHICLE EXCISE TAX.--The rate of the motor vehicle excise tax is three and one-half percent and is applied to the price paid for the vehicle. If the price paid does not represent the value of the vehicle in the condition that existed at the time it was acquired, the tax rate shall be applied to the reasonable value of the vehicle in such condition at such time. However, allowances granted for vehicle trade-ins may be deducted from the price paid or the reasonable value of the vehicle purchased."

Section 2. Section 7-14-10 NMSA 1978 (being Laws 1988, Chapter 73, Section 20, as amended) is amended to read:

"7-14-10. DISTRIBUTION OF PROCEEDS.--The receipts from the tax and any associated interest and penalties shall be deposited in the "motor vehicle suspense fund", hereby created in the state treasury. As of the end of each month, one-seventh of the net receipts attributable to the tax [and associated] shall be distributed to the road improvement fund. The remainder of the net receipts and all penalties and interest shall be distributed to the general fund."

Section 3. [NEW MATERIAL] ROAD IMPROVEMENT FUND--CREATED--USE.--

A. The "road improvement fund" is created in the state treasury. The fund shall be administered by the state highway and transportation department as a special fund. The fund shall consist of money appropriated and transferred to the fund and motor vehicle excise tax revenues distributed to the fund by law. Earnings to the fund shall be credited to the fund and the fund shall not revert at the end of any fiscal year. Expenditures from the fund shall be by warrant of the secretary of finance and administration upon vouchers signed by the secretary of highway and transportation.

B. The road improvement fund shall be expended by the state highway and transportation department as loans or grants for road improvement projects specifically authorized by law. The state highway and transportation department is authorized to enter into such joint powers agreements, memoranda of understanding or other agreements as the department deems necessary to complete projects authorized by the legislature.

Section 4. EFFECTIVE DATE.--

A. The effective date of the provisions of Section 1 of this act is the first day of the calendar month beginning after this act is enacted into law.

B. The effective date of the provisions of Sections 2 and 3 of this act is one month after the effective date of the provisions of Section l.

Section 5. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.