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

 

 

 

SPONSOR:

Vigil

 

DATE TYPED:

02/18/03

 

HB

399

 

SHORT TITLE:

Trip Tax Administrative Fee

 

SB

 

 

 

ANALYST:

Gilbert

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

$150.0

$150.0

Recurring

Road Fund

 

$150.0

$150.0

Recurring

Motor Transportation Division

(Parenthesis ( ) Indicate Revenue Decreases)

 

Relates to HB 400

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Department of Public Safety (DPS)

State Highway and Transportation Department (SHTD)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 399 establishes a one-dollar administrative fee to be imposed by the Motor Transportation Division in conjunction with the Trip Tax, the Caravan Tax, and Oversize/Overweight Fees.  One-half of each fee would be distributed to the Motor Transportation Division for implementation, operation and maintenance of a commercial vehicle information system and network, and one-half would be distributed to the State Road Fund.

 

FISCAL IMPLICATIONS

 

Motor Transportation Division (MTD) reports for FY 2002 show that approximately 330,000 transactions would be subject to the $1 administrative fee.  Transaction counts declined from 385,000 in FY 2001 to 330,000 in FY 2002.  If HB 399 is adopted, MTD estimates that revenue would increase by a total of $300.0 for FY 2004 and subsequent years.

 

TECHNICAL ISSUES

 

The State Highway and Transportation Department (SHTD) specified the following concerns:

 

Section 1, Subsection B (on page 2, line 5) provides that one-half of the fees “shall be deposited in the state road fund”.  These fees would probably be channeled through the Taxation and Revenue Department and distributed to the state road fund.  Since the new administrative fee is to be compiled within the Motor Vehicle Code and presumably would be credited to the Motor Vehicle Suspense Fund pursuant to Section 66-6-22.1 NMSA 1978, a distribution provision should probably be included within Section 66-6-23 NMSA 1978.

 

RELATIONSHIP

 

HB 400 implements a similar trip tax permit fee.

 

RLG/prr