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SPONSOR: |
Hurt |
DATE TYPED: |
|
HB |
|
||
SHORT TITLE: |
Increase Liquor Excise Tax |
SB |
155 |
||||
|
ANALYST: |
Neel |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
($707.0) |
($771.0) |
Recurring |
General
Fund |
|
($369.0) |
(404.0) |
Recurring |
DWI Grant Fund |
|
$35,432.0 |
$38,653.0 |
Recurring |
Alcohol Remediation Fund |
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
LFC files
Responses
Received From
Taxation and Revenue Department (TRD)
Department of Health (DOH)
Health Policy Commission (HPC)
State Highway Department
SUMMARY
Synopsis
of Bill
Senate
Bill 155 proposes to increase the liquor excise tax on selected categories of
alcohol in order to generate funds for a variety of specified health programs
that address the negative health impacts of alcohol. Section 1 proposes to amend Section 7-1-6.40,
NMSA 1978, entitled “Distribution – Local DWI Grant Fund” to create the
“Alcohol Use Remediation Fund” and to set a new percentage, sixteen and seventy
seven hundredths percent (16 and 77/100%), for the Local DWI Grant Fund In
addition, SB 155 proposes to distribute fifty-one and one-half percent (51.5%)
of the net receipts attributable to the liquor excise tax to the Alcohol Use
Remediation Fund.
Section
2 proposes to amend Section
Section
3 identifies the proposed purposes of the 51.5% of the alcohol excise tax proceeds
going into the Alcohol Use Remediation Fund.
It is proposed that the Department of Health would receive the entire
recurring distribution and would develop regulations for its administration to
carry out the specified provisions identified below. Money in the Alcohol Use Remediation Fund
would not revert at the end of the fiscal year. The specified purposes for
FY-2004 and subsequent years (except where otherwise designated) are:
·
thirty seven percent (37%) to designated
trauma centers to offset the cost of providing unreimbursed
indigent;
·
eight percent (8%) for brain injury
Medicaid waiver program to provide long term care;
·
ten percent (10%) to contract for
evidence-based prevention services to reduce alcohol use among children youth;
·
one percent (1%) for public sector and
faith community partnerships for alcohol prevention activities and services;
·
one percent (1%) to contract for alcohol
prevention activities and services for students at post-secondary educational
institutions;
·
one percent (1%) for youth development
activities;
·
twenty-six percent (26%) to be
transferred to the Human Services Department for the medical assistance
program;
·
sixteen percent (16%), for fiscal year
2004 only, to be transferred to the Office of the Medical Investigator for
improvements to the anatomy laboratory;
·
nine percent (9%), for fiscal year 2005
and subsequently, would be transferred to the UNM School of Medicine to expand
the physician assistant program; and,
·
seven
percent (7%), for fiscal year 2005 and subsequently, would be transferred to
the to the Commission on Higher Education to expand nursing education programs
at public post-secondary educational institutions.
Section
4 proposes to make the effective date for the provisions of Section 1 of SB155
for
FISCAL IMPLICATIONS
TRD notes the
following details regarding the fiscal impact:
FISCAL
IMPACT CALCULATION (Volumes & Dollars in thousands)
|
Beer
(gallons) |
Spirit
(liters) |
Wine
(liters) |
Totals |
|
|
|
|
|
FY 04 taxable volumes with no tax increase |
49,358 |
7,821 |
10,209 |
|
FY 04 liquor revenue with no tax increase |
$20,237 |
$12,513 |
$4,594 |
$37,344 |
Percentage change in price due to tax increase |
8.66% |
4.13% |
3.27% |
|
Price elasticity of demand |
-0.4 |
-0.7 |
-0.4 |
|
Expected taxable demand change due to tax increase |
-3.46% |
-2.89% |
-1.31% |
|
FY 04 taxable volumes with tax increase |
47,649 |
7,594 |
10,075 |
|
FY 04 liquor revenue with tax increase |
$50,984 |
$17,087 |
$6,750 |
$74,822 |
Increase in revenue due to tax increase |
$30,747 |
$4,574 |
$2,157 |
*$37,478 |
*The
Alcohol Remediation Fund impact of $38,653 minus the impacts to the General
Fund of $771 and the DWI Grant Fund of
$404 = $37,478.
EFFECTIVE DATE: The effective date of
Section 1 (distributions) is
If Applicable
This bill creates a
new fund and provides for continuing appropriations. The LFC objects to including continuing
appropriation language in the statutory provisions for newly created
funds. Earmarking reduces the ability of
the legislature to establish spending priorities.
OTHER
SUBSTANTIVE ISSUES
The
Health Policy Commission notes the following:
SN/yr