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 also be obtained from the LFC
in
F I S C A
L I M P A
C T R E P O R T
|
SPONSOR |
Cravens |
DATE TYPED |
|
HB |
|
||
|
SHORT
TITLE |
Ignition Interlocks on New and Used Cars |
SB |
380 |
||||
|
|
ANALYST |
Valenzuela |
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY04 |
FY05 |
FY04 |
|
||
|
|
$50.0 |
|
FY08*:
$825.0 |
Recurring |
General
Fund |
(Parenthesis
( ) Indicate Expenditure Decreases)
*
Reflects an estimate for state agencies cost of implementing provisions of
bill.
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
|
FY08 |
|||
|
|
($83.9
million) |
($83.9
million) |
Recurring |
Motor
Vehicle Excise Tax (General Fund) |
(Parenthesis ( ) Indicate Revenue Decreases)
* does not reflect impact from used car sales.
SOURCES
OF INFORMATION
Department of Transportation
Public Defenders
SUMMARY
Synopsis of Bill
Senate
Bill 380 requires all new or used motor vehicles offered for sale in
SB380 appropriates $50 thousand from the general
fund to Traffic Safety Bureau of the New Mexico Department of Transportation
for the purpose of hiring one full-time staff person to draft rules and
supervise the rulemaking process for ignition interlock devices in motor vehicles.
The bill amends the Motor Vehicle Excise Tax Act
to provide a credit against the motor vehicle excise tax for the value of the
interlock device.
Significant Issues
Senate Bill 380 would have both an economic
impact on purchasers of motor vehicles through an increased purchase price and
a fiscal impact on the general fund from the loss of revenue for motor vehicle
excise tax credit. The calculations and discussion follow and are based on average cost of interlock
device, (maximum tax credit) of $1,050[1] and 124,247 new cars
sold.
$ 22,500 average
purchase price of a new car in
$ 675 motor
vehicle excise tax, per car
-$83.9 million Loss
motor vehicle excise tax (new cars sold x excise tax)
Economic impact estimates are below:
TRD
Info Economic Impact
2003 @
1,050/vehicle
New Cars Sold 124,247 $ 130.5 million
Used Cars Sold 399,596 $ 419.6 million
The table below provides several other
scenarios, given different assumptions for purchase price.
|
|
Motor Vehicle Purchase Price of |
||
|
|
$ 15,000 |
$ 20,000 |
$ 30,000 |
|
Excise
Tax (3% of purchase price) |
450 |
600 |
900 |
|
Cost of
ignition interlock device |
1,050 |
1,050 |
1,050 |
|
Tax
credit up to excise tax amount |
450 |
600 |
900 |
|
Fiscal Impact: Loss to general fund |
$ (55,911,150) |
$ (74,548,200) |
$ (111,822,300) |
The
following graphic illustrates the impact to consumers, who would be required to
cover the cost of the interlock device above the impact of the tax credit.
FISCAL IMPLICATIONS
The appropriation of $50 thousand contained in
this bill is a recurring expense to the general fund. Any unexpended or unencumbered
balance remaining at the end of FY05 shall revert to the general fund.
State agencies will be impacted by SB380. The
General Services Department reports that it owns more than 1,900 vehicles in
its fleet. Based on a 15 percent annual replacement, GSD would incur a cost of
$300 thousand to put these devices in state vehicles. Other state agencies, not
included in the GSD fleet report:
- DPS
replaces almost 200 vehicles annually, cost $210 thousand
- Department
of Transportation replaces almost 300 vehicles annually, cost $315
thousand.
MFV/yr