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 Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR

Silva

DATE TYPED

02-05-04

HB

514

 

SHORT TITLE

Create State Transit Fund From Vehicle Tax

SB

 

 

 

ANALYST

Taylor

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

400.0

 

 

Recurring

State Transit

(Parenthesis ( ) Indicate Expenditure Decreases)

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

(400.0)

(420.0)

Recurring

General Fund

 

400.0

420.0

Recurring

State Transit Fund

(Parenthesis ( ) Indicate Revenue Decreases)

 

 

SOURCES OF INFORMATION

 

LFC Files

 

 

SUMMARY

 

House Bill 514 creates the state transit fund in the state treasury.  It transfers a portion of motor vehicle excise tax revenues from the general fund to the state transit fund.  The transfer is equal to 0.33 percent of motor vehicle excise tax revenues.  Money in the fund is appropriated to the department of transportation to pay for administration, operating and construction costs of mass transit projects.   

 

The bill has an effective date of July 1, 2004.

 

 

 

 

 

FISCAL IMPLICATIONS

 

The bill is estimated to decrease general fund revenue by $400 thousand in FY05.  This estimate equals 0.33 percent multiplied by $122 million.  $122 million is the amount of money expected in FY05 from the motor vehicle tax excise tax.  This money is transferred to the state transit fund, from which it appropriated for mass transit projects.

 

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.

 

 

ADMINISTRATIVE IMPLICATIONS

 

The impact to TRD should be minor.

 

BT/dm:lg