Fiscal impact
reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for
standing finance committees of the NM Legislature. The LFC does not assume
responsibility for the accuracy of these reports if they are used for other
purposes.
Current FIRs (in
HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us). Adobe PDF versions include all attachments,
whereas HTML versions may not.
Previously issued FIRs and attachments may be obtained from the LFC in
|
SPONSOR |
Hanosh |
DATE TYPED |
|
HB |
486/a HTRC |
||
|
SHORT
TITLE |
Motor Vehicle Fees & Fund Distribution |
SB |
|
||||
|
|
ANALYST |
Reynolds-Forte |
|||||
REVENUE
{Indicated amounts are in thousands, e.g.,
$100,000.00 should be $100.0}
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or Nonrecurring |
|
|
|
FY04 |
FY05 |
Fund Affected |
||
|
none |
($100.0) |
similar |
Recurring |
State Road Fund |
|
none |
($25.0) |
similar |
Recurring |
Counties and
Municipalities |
|
none |
($30.0) |
similar |
Recurring |
Local |
|
none |
$840.0 |
similar |
Recurring |
Municipal & Fee
Agents |
|
none |
$900.0 |
similar |
Recurring |
Motor Vehicle Division
(admin. fee) |
|
none |
$1,585.0 |
similar |
Recurring |
Total |
(Parenthesis ( )
Indicate Revenue Decreases)
Conflicts with Senate Bill 504 and House Bill
175
LFC Files
Response
Received From
Department
of Transportation
SUMMARY
Synopsis of HTRC Amendment
The
House Taxation and Revenue Committee Amendment to House Bill 486 strikes
section one of the original bill to leave the
administrative fee at its current fifty cents per service. The amendment redistributes this fifty cent service fee from the State Road Fund (Department
of Transportation) to the Motor Vehicle Division of Taxation and Revenue
Department and adds a
The
Amendment increases the transaction fee imposed on vehicle registration
transactions from $3 to $4.
The Amendment makes no
changes to the increases
in the distribution of portions of certain fees distributed to the municipal and fee agents conducting the
transactions. These fees are increased from the current $6 to $8 for drivers’ license
transactions and from the current $3 to $5 for vehicle title or registration
transactions.
FISCAL
IMPLICATIONS
House Bill 486/aHTRC would decrease State Road
Fund revenues by $100 thousand annually, decrease county and municipal revenues
by $25 thousand annually and decrease Local Government Road Fund revenues by
$30 thousand annually. The amended bill
would increase revenues to the municipal and fee agents by $840 thousand annually
and increase revenues to the Motor Vehicle Division by $900 annually.
CONFLICTS
House
Bill 486/a HTRC now conflicts with SB-504; the original House Bill 486 and
Senate Bill 504 were duplicates.
Synopsis of Original
Bill
House Bill 486 increases the administrative fee
imposed on Motor Vehicle Division transactions from the current fifty cent ($0.50)
fee to one dollar ($1.00). The bill also
increases the distribution of portions of other fees distributed to the municipal and fee agents
conducting the transactions. These fees
are increased from the current $6 to $8 for drivers’ license transactions and from
the current $3 to $5 for vehicle title or registration transactions.
House Bill 486 adds a section which distributes
the $25 fee collected for the special pet care registration plates to each
county to support animal control spaying and neutering programs in an amount
proportionate to the number of resident of that county who have purchased pet
care special
registration plates.
Significant
Issues
House Bill 486 does
not contain an effective date.
The
administrative fees collected by municipal and private fee agents are distributed
back to those fee agents. Administrative
fees collected by the Motor Vehicle Division are distributed to the State Road
Fund and local governments. Currently Section 66-6-19 NMSA 1978 imposes a fee
of $3.00 for vehicle title or registration transactions, yet House Bill 486
proposes to give fee agents $5.00 for performing those transactions (i.e.,
distribute $5 out of a $3 fee). The net
effect of this is to distribute portions of state vehicle registration fees
that currently benefit the State Road Fund (primarily) to the fee agents.
FISCAL IMPLICATIONS
The total fee increase
in the bill is $1,024.0. House Bill 486 increases
the administrative service fee which increases revenues to the State Road Fund,
counties and municipalities and the municipal and fee agents. The bill also increases the portion of fees
distributed to the municipal and fee agents which increases their revenues but
decreases revenues to the State Road Fund, counties and municipalities and the
Local Government Road Fund. The net
impact of theses changes is shown in the revenue table above.
The following shows the gain and loss to each
fund/entity:
State Road Fund: Includes
+$601 thousand gain from administrative fees and ($568) thousand loss of other
fees.
County & Municipal: Includes
+$302 thousand gain from administrative fees and ($197) thousand loss of other
fees.
Local
Municipal and Fee
Agent: Includes +$121 thousand from administrative fees and +$795
thousand gain of other fees.
ADMINISTRATIVE
IMPLICATIONS
The
New Mexico Department of Transportation points out that many private fee agents
operate under specific contracts with the Motor Vehicle Division. These contracts would have to be re-executed
on the effective date of this bill. The Taxation and Revenue Department will
also need to make to the MVD computer system in regard to the fee increase and
revenue distribution changes.
DUPLICATION AND
CONFLICT
House Bill 486 duplicates Senate Bill 504 and
conflicts with House Bill 175 which redirects the administrative service fee to
the Motor Vehicle Division.
TECHNICAL ISSUES
The New Mexico Department of Transportation points out the following
technical issues:
·
Any
bill that increases fees or adjusts revenue distributions must include an
Effective Date provision and/or an Applicability Date provision.
·
Section
66-6-19 NMSA 1978 imposes a fee of $3.00 for vehicle title or registration
transactions, yet the bill proposes to give Fee Agents $5.00 for performing
those transactions (i.e., distribute $5 out of a $3 fee). The net effect of this is to distribute
portions of state vehicle registration fees that currently benefit the State
Road Fund (primarily) to the fee agents.
·
The
bill misses an opportunity to repair the distribution of firefighter special
plate revenue to the Motor Vehicle Division (MVD). On page 6, line 5 the corrected reference
would be “Subsection [E] F
of Section 66-3-422 NMSA 1978”.
·
The
changes on page 6, lines 6 through 8 should be reviewed and a more
comprehensive fix offered for the distribution of revenue to the MVD associated
with the many new special plates enacted in 2003 pursuant to Section 66-3-424 –
Standardized Special Registration Plates With Logos.
·
On
page 8, line 19 the reference should be to “the fees collected pursuant to Paragraph (2) of Subsection D of
Section 66-3-424.3 NMSA 1978”.
OTHER SUBSTANTIVE ISSUES
The New Mexico
Department of Transportation points out the following issues with House Bill
486:
·
The
fee for issuing a Drivers License is $10 (Section 66-5-44 NMSA 1978). Municipal
and Fee Agents would receive 80% of that fee under the bill’s provisions. This increased revenue to the fee agents
comes entirely out of the State Road Fund (about $176 thousand).
·
The
fee for issuing an ID card is $5.00 (Section 66-5-408). Municipal and Fee
Agents would receive the 100% of that fee under the bill’s provisions. This
increased revenue to the fee agents comes entirely out of the Local Governments
Road Fund (about $30 thousand).
· The Motor Vehicle
Division has experienced disagreements with Municipal and Fee Agents when
interpreting application of administrative fees “for each item or transaction” (see Section 1, Subsection A on
page 1, line 25). This should probably
be clarified. For example, issuing a
vehicle title and obtaining the initial vehicle registration might be
considered one transaction that includes two items.
PRF/lg:yr