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SPONSOR: |
Silva |
DATE TYPED: |
|
HB |
975/aHTC/aHAFC |
||
SHORT TITLE: |
Increase Gas Tax to |
SB |
|
||||
|
ANALYST: |
Reynolds-Forte |
|||||
APPROPRIATION
Appropriation
Contained |
Estimated Additional
Impact |
Recurring or Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
$561,200.0 |
|
|
Non-Rec |
Bond Sale Revenues |
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
64,338.0 |
70,302.0 |
Recurring |
State Road Fund |
|
1,021.0 |
1,129.0 |
Recurring |
County
and |
|
566.0 |
626.0 |
Recurring |
County
Road Funds |
|
566.0 |
626.0 |
Recurring |
Municipal
Road Funds |
|
137.0 |
152.0 |
Recurring |
Municipal
Arterial Program |
|
24.0 |
27.0 |
Recurring |
Aviation
Division |
|
12.0 |
13.0 |
Recurring |
Motorboat
Fuel Fund |
|
150.0 |
163.0 |
Recurring |
Local
|
|
66,814.0 |
73,038.0 |
Recurring |
TOTAL
– All Funds |
(Parenthesis
( ) Indicate Revenue Decreases)
HB-644 and this bill both repeal Laws 1995,
Chapter 6, Section 11 – the 1 cent gasoline tax decrease scheduled for July 1,
2003. The fiscal impacts shown
for funds other than the State Road Fund result mostly from that repeal. About 70% of the fiscal impact
to those other funds are the result of retention of the 1 cent tax, and
about 30% of the fiscal impact to those other funds are the result of the HAFC
Amendment.
Responses
Received From
State
Highway and Transportation Department
Synopsis of HAFC Amendment
The House Appropriations and Finance Committee Amendment
to HB975 strikes the HTC amendment and revises the proposed gasoline tax rate
increase from 5 cents to 5.4 cents, revises the proposed special fuel tax rate
increase from 4 cents to 4.4 cents, adds a 15th highway project, and
adds $40 million to the aggregate limit on the outstanding principal amount of
bonds.
The 15th highway project is US285, Lamy to Clines Corners for $40 million. This improvement would widen an important corridor
that links I-25 and I-40, providing enhanced flexibility of routes to the
benefit of economic activity and emergency preparedness.
FISCAL
IMPLICATIONS
The HAFC
amendment increases both the gasoline and special fuel tax from the original
bill. The new twenty-two and four-tenths
cents tax on gasoline and special fuel will increase revenues $66,814.0 in FY04
and $73,038.0 in subsequent years. The
Revenue Table shown above delineates how the increased revenues will impact the
state, cities and counties.
TECHNICAL
ISSUES
The HAFC Amendment to HB975 adjusts the tax
rates by four-tenths of a cent per gallon, but does not adjust the revenue
distribution shares to local governments.
Thus, local government road funds, the Municipal Arterial Fund, the
Aviation Division, and the Motorboat Fuel Fund all gain a share of the
additional revenue attributable to the four-tenths of a cent tax increase added
by the amendment.
The
Synopsis of HTC Amendment
The House
Transportation Committee Amendment changes the additional amount of bonds that
can be issued. The amount of bonding
authority now equals the amount of projects listed in the bill. The amounts reflected in the tables are
correct.
Synopsis of Original Bill
HB975 increases the state gasoline excise tax by
five cents per gallon and increases the state special fuel excise tax by four
cents per gallon. The limit on bonding
authority for highway debentures is increased by $512.6 million, and the
Transportation Commission is authorized to issue bonds for 14 highway
improvement projects. $521.2 million is
appropriated from the proceeds of the sale of bonds to the Highway and
Transportation Department for the 14 projects.
HB975 has a
Significant Issues
The 14 highway
improvement projects listed in the bill are:
This
improvement would widen the existing 2-lane highway to a 4-lane highway. The
project will provide much needed corrections to safety issues, drainage issues,
and correct roadway design deficiencies.
(Note: The NMSHTD is currently working on a Location
Study in conjunction with the Navajo Nation for that portion from Tohatchi to
Shiprock. The project is currently in
Phase IA of the study. This joint venture
is the first of its kind between the state and the Navajo Nation in
This
improvement would add a new 2-lane adjacent to the existing 2-lane highway creating
a 4-lane divided highway on US54, from Tularosa to
The 20-year traffic
projections reveal that the current interchange configuration will not be able
to accommodate future volumes. The
planned improvements would reconstruct
the interchange with
“flyovers”, as well as the approaches on I-40 and Coors to the interchange. The
new interchange will be a system interchange and enhance mobility and safety to
this western gateway into the Albuquerque Metropolitan area.
4.
US 62/180-
This
improvement would widen the existing 2-lane highway to a 4-lane highway from
This improvement would widen the existing
Interstate from 4-lanes to 6-lanes and provide for the much needed capacity and
geometric enhancements. This would
complete one of the major links into the Albuquerque Metropolitan area.
This
improvement would widen the existing Interstate from 4-lanes to 6-lanes within
the
This
improvement would provide right-of-way and roadway improvements to
This
improvement would provide right-of-way and roadway improvements on the Sunland
Park Extension that would serve to enhance safety and manage access into the
continually growing south side area of Santa Teresa in
9.
I-40/Acoma interchange reconstruction
($7,000.0):
This
improvement would provide a 50% design and reconstruction match to a $7,000.0
contribution and commitment by the Acoma Pueblo. The project’s total cost is $14,000.0. The interchange is the center of the
10. I-40,
West of
This improvement would reconstruct the
existing Interstate from milepost 12 to milepost 16, to provide rehabilitation
of a severely distressed and heavily used segment of the I-40 corridor.
11. US84/285,
Pojoaque to Espanola ($25,000.0):
This
improvement would reconstruct and provide geometric improvements on the existing
highway, from Pojoaque to Espanola. The roadway is a major commuter route vital
to transportation and economic development in
12. SR45,
This
improvement would provide right-of-way and roadway improvements to
This improvement would support
reconstruction of the existing Interstate east of the
14. University
Blvd. Extension and Access to I-25 ($6,000.0):
This improvement would support
construction of
FISCAL
IMPLICATIONS
HB975 increases
the gasoline tax by five cents per gallon and increases the state special fuel
tax by four cents per gallon which would generate $67.9 million annually of
which $65.9 will go into the road fund.
The counties, municipalities and other fuel tax recipients will have
increased revenues of about $2.0 million per year; they are impacted as a result
of the bill repealing the one cent gasoline tax decrease scheduled for
The bill also increases the bonding authority
for highway debentures by $512.6 million and appropriates $521.2 million to the
Highway and Transportation for the 14 projects listed in the bill.
CONFLICT
HB
975 conflicts with HB644,
which repeals the one-cent gasoline tax decrease, scheduled for
PRF/ls:yr