HOUSE BILL 602
47th legislature - STATE OF NEW MEXICO - second session, 2006
INTRODUCED BY
Daniel P. Silva
AN ACT
RELATING TO PUBLIC FINANCE; INCREASING THE GASOLINE TAX BY TWO CENTS ($.02); CREATING THE SCHOOL BUS ROUTES FUND; AUTHORIZING SCHOOL BUS ROUTES BONDS FOR ACQUIRING RIGHTS OF WAY AND CONSTRUCTING, MAINTAINING, REPAIRING, IMPROVING AND PAVING SCHOOL BUS ROUTES AND PUBLIC SCHOOL PARKING LOTS, PAYABLE FROM TAXES AND FEES REQUIRED TO BE PAID INTO THE SCHOOL BUS ROUTES FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--SCHOOL BUS ROUTES FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the school bus routes fund in an amount equal to ten and fifty-three hundredths percent of the net receipts attributable to the gasoline tax."
Section 2. Section 7-1-6.7 NMSA 1978 (being Laws 1994, Chapter 5, Section 2, as amended) is amended to read:
"7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to four and seventy-nine hundredths percent of the taxable gross receipts attributable to the sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to [twenty-six] twenty-three hundredths percent of gasoline taxes, exclusive of penalties and interest, collected pursuant to the Gasoline Tax Act.
C. From July 1, 2002 through June 30, 2007, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to forty-six thousandths percent of the net receipts attributable to the gross receipts tax distributable to the general fund."
Section 3. Section 7-1-6.8 NMSA 1978 (being Laws 1983, Chapter 211, Section 13, as amended) is amended to read:
"7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the motorboat fuel tax fund in an amount equal to [thirteen] twelve hundredths [of one] percent of the net receipts attributable to the gasoline tax."
Section 4. Section 7-1-6.9 NMSA 1978 (being Laws 1991, Chapter 9, Section 11, as amended) is amended to read:
"7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES AND COUNTIES.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made in an amount equal to [ten and thirty-eight] nine and twenty-nine hundredths percent of the net receipts attributable to the taxes, exclusive of penalties and interest, imposed by the Gasoline Tax Act.
B. [Except as provided in Subsection D of this section] The amount determined in Subsection A of this section shall be distributed as follows:
(1) ninety percent of the amount shall be paid to the treasurers of municipalities and H class counties in the proportion that the taxable motor fuel sales in each of the municipalities and H class counties bears to the aggregate taxable motor fuel sales in all of these municipalities and H class counties; and
(2) ten percent of the amount shall be paid to the treasurers of the counties, including H class counties, in the proportion that the taxable motor fuel sales outside of incorporated municipalities in each of the counties bears to the aggregate taxable motor fuel sales outside of incorporated municipalities in all of the counties.
C. Except as provided in Subsection D of this section, this distribution shall be paid into a separate road fund in the municipal treasury or county road fund for expenditure only for construction, reconstruction, resurfacing or other improvement or maintenance of public roads, streets, alleys or bridges, including right-of-way and materials acquisition. Money distributed pursuant to this section may be used by a municipality or county to provide matching funds for projects subject to cooperative agreements entered into with the [state highway and transportation] department of transportation pursuant to Section 67-3-28 NMSA 1978. Any municipality or H class county that has created or that creates a "street improvement fund" to which gasoline tax revenues or distributions are irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that has pledged all or a portion of gasoline tax revenues or distributions to the payment of bonds shall receive its proportion of the distribution of revenues under this section impressed with and subject to these pledges.
D. This distribution may be paid into a separate road fund or the general fund of the municipality or county if the municipality has a population less than three thousand or the county has a population less than four thousand."
Section 5. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter 211, Section 15, as amended) is amended to read:
"7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, surcharges, penalties and interest imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes, fees, penalties and interest imposed pursuant to the Special Fuels Supplier Tax Act and the Alternative Fuel Tax Act less:
(1) the amount distributed to the state aviation fund pursuant to Subsection B of Section 7-1-6.7 NMSA 1978;
(2) the amount distributed to the motorboat fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;
(3) the amount distributed to municipalities and counties pursuant to Subsection A of Section 7-1-6.9 NMSA 1978;
(4) the amount distributed to the county government road fund pursuant to Section 7-1-6.19 NMSA 1978;
(5) the amount distributed to the local governments road fund pursuant to Section 7-1-6.39 NMSA 1978;
(6) the amount distributed to the municipalities pursuant to Section 7-1-6.27 NMSA 1978;
(7) the amount distributed to the municipal arterial program of the local governments road fund pursuant to Section 7-1-6.28 NMSA 1978;
(8) the amount distributed to a qualified tribe pursuant to a gasoline tax sharing agreement entered into between the secretary of transportation and the qualified tribe pursuant to the provisions of Section 67-3-8.1 NMSA 1978; [and]
(9) the amount distributed to the general fund pursuant to Section 7-1-6.44 NMSA 1978; and
(10) the amount distributed to the school bus routes fund pursuant to Section 1 of this 2006 act.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, interest and penalties from the Weight Distance Tax Act."
Section 6. Section 7-1-6.19 NMSA 1978 (being Laws 1991, Chapter 9, Section 15, as amended) is amended to read:
"7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND CREATED.--
A. There is created in the state treasury the "county government road fund".
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county government road fund in an amount equal to five and [seventy-six] fifteen hundredths percent of the net receipts attributable to the gasoline tax."
Section 7. Section 7-1-6.27 NMSA 1978 (being Laws 1991, Chapter 9, Section 20, as amended) is amended to read:
"7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities for the purposes and amounts specified in this section in an aggregate amount equal to five and [seventy-six] fifteen hundredths percent of the net receipts attributable to the gasoline tax.
B. The distribution authorized in this section shall be used for the following purposes:
(1) reconstructing, resurfacing, maintaining, repairing or otherwise improving existing alleys, streets, roads or bridges, or any combination of the foregoing; or laying off, opening, constructing or otherwise acquiring new alleys, streets, roads or bridges, or any combination of the foregoing; provided that any of the foregoing improvements may include, but are not limited to, the acquisition of rights of way;
(2) to provide matching funds for projects subject to cooperative agreements with the [state highway and transportation] department of transportation pursuant to Section 67-3-28 NMSA 1978; and
(3) for expenses of purchasing, maintaining and operating transit operations and facilities, for the operation of a transit authority established by the Municipal Transit Law and for the operation of a vehicle emission inspection program. A municipality may engage in the business of the transportation of passengers and property within the political subdivision by whatever means the municipality may decide and may acquire cars, trucks, motor buses and other equipment necessary for operating the business. A municipality may acquire land, erect buildings and equip the buildings with all the necessary machinery and facilities for the operation, maintenance, modification, repair and storage of the cars, trucks, motor buses and other equipment needed. A municipality may do all things necessary for the acquisition and the conduct of the business of public transportation.
C. For the purposes of this section:
(1) "computed distribution amount" means the distribution amount calculated for a municipality for a month pursuant to Paragraph (2) of Subsection D of this section prior to any adjustments to the amount due to the provisions of Subsections E and F of this section;
(2) "floor amount" means four hundred seventeen dollars ($417);
(3) "floor municipality" means a municipality whose computed distribution amount is less than the floor amount; and
(4) "full distribution municipality" means a municipality whose population at the last federal decennial census was at least two hundred thousand.
D. Subject to the provisions of Subsections E and F of this section, each municipality shall be distributed a portion of the aggregate amount distributable under this section in an amount equal to the greater of:
(1) the floor amount; or
(2) eighty-five percent of the aggregate amount distributable under this section [times] multiplied by a fraction, the numerator of which is the municipality's reported taxable gallons of gasoline for the immediately preceding state fiscal year and the denominator of which is the reported total taxable gallons for all municipalities for the same period.
E. Fifteen percent of the aggregate amount distributable under this section shall be referred to as the "redistribution amount". Beginning in August 1990, and each month thereafter, from the redistribution amount there shall be taken an amount sufficient to increase the computed distribution amount of every floor municipality to the floor amount. In the event that the redistribution amount is insufficient for this purpose, the computed distribution amount for each floor municipality shall be increased by an amount equal to the redistribution amount [times] multiplied by a fraction, the numerator of which is the difference between the floor amount and the municipality's computed distribution amount and the denominator of which is the difference between the product of the floor amount multiplied by the number of floor municipalities and the total of the computed distribution amounts for all floor municipalities.
F. If a balance remains after the redistribution amount has been reduced pursuant to Subsection E of this section, there shall be added to the computed distribution amount of each municipality that is neither a full distribution municipality nor a floor municipality an amount that equals the balance of the redistribution amount [times] multiplied by a fraction, the numerator of which is the computed distribution amount of the municipality and the denominator of which is the sum of the computed distribution amounts of all municipalities that are neither full distribution municipalities nor floor municipalities."
Section 8. Section 7-1-6.28 NMSA 1978 (being Laws 1991, Chapter 9, Section 22, as amended) is amended to read:
"7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the municipal arterial program of the local governments road fund created in Section 67-3-28.2 NMSA 1978 in an amount equal to one and [forty-four] twenty-nine hundredths percent of the net receipts attributable to the gasoline tax."
Section 9. Section 7-13-3 NMSA 1978 (being Laws 1971, Chapter 207, Section 3, as amended) is amended to read:
"7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GASOLINE TAX".--
A. For the privilege of receiving gasoline in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of gasoline received in New Mexico.
B. The tax imposed by Subsection A of this section shall be [seventeen cents ($.17)] nineteen cents ($.19) per gallon received in New Mexico.
C. The tax imposed by this section may be called the "gasoline tax"."
Section 10. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read:
"[NEW MATERIAL] SCHOOL BUS ROUTES FUND CREATED--PURPOSES.--
A. The "school bus routes fund" is created in the state treasury and shall be administered by the department. The fund shall consist of money from various fees and taxes distributed to the fund. Earnings on investment of the fund shall be credited to the fund. Balances in the fund at the end of any fiscal year shall not revert and shall remain in the fund for the purposes authorized in this section.
B. The taxes and fees required by law to be distributed to the school bus routes fund may be used solely to pledge for the payment of school bus routes bonds issued pursuant to Section 11 of this 2006 act. The proceeds of school bus routes bonds shall only be used for the acquisition of rights of way for, the design, construction, maintenance and repair of and improvements to school bus routes and public school parking lots pursuant to the policy and procedure established by the department for funding school bus routes pursuant to Paragraph (3) of Subsection C of Section 67-3-28.2 NMSA 1978 and are appropriated to the department for expenditure for those purposes."
Section 11. [NEW MATERIAL] SCHOOL BUS ROUTES BONDS--ISSUANCE--PROCEDURES.--
A. In order to provide funds to finance school bus routes and public school parking lot projects conducted pursuant to the department's policy and procedures for funding school bus routes established pursuant to Paragraph (3) of Subsection C of Section 67-3-28.2 NMSA 1978, the New Mexico finance authority, when directed by the state transportation commission, is authorized, subject to the limitations of this section, to issue bonds from time to time, payable from proceeds from the collection of taxes and fees that are required to be paid into the school bus routes fund and not otherwise pledged exclusively to the payment of outstanding bonds.
B. The total aggregate outstanding principal amount of bonds issued from time to time pursuant to this section, secured by or payable from the proceeds from the collection of taxes and fees required by law to be paid into the school bus routes fund, shall not, without additional authorization of the legislature, exceed two hundred million dollars ($200,000,000).
C. Each series of bonds shall have a maturity of no more than fifteen years from the date of issuance. In consultation with the state transportation commission, the New Mexico finance authority shall determine all other terms, covenants and conditions of the bonds; provided that the project design life of a project meets or exceeds the life of the bond issued for that project, and each series of bonds shall be sold, executed and delivered in accordance with the provisions of the New Mexico Finance Authority Act. The New Mexico finance authority may enter into interest rate exchange agreements, interest rate swap contracts, insurance agreements, remarketing agreements and any other agreements deemed necessary in connection with the issuance of the bonds.
D. The New Mexico finance authority, when directed by the state transportation commission, may issue bonds to refund other bonds issued by or at the direction of the state transportation commission pursuant to this section by exchange or current or advance refunding.
E. Proceeds of the bonds and amounts on deposit in the school bus routes fund may be used to pay expenses incurred in the preparation, administration, issuance and sale of the bonds and, together with the earnings on the proceeds of the bonds, may be used to pay rebate, penalty, interest and other obligations relating to the bonds and the proceeds of the bonds under the federal Internal Revenue Code of 1986, as amended.
F. This section is full authority for the issuance and sale of the bonds, and the bonds shall not be invalid for any irregularity or defect in the proceedings for their issuance and sale and shall be incontestable in the hands of bona fide purchasers or holders of the bond for value.
G. The bonds shall be legal investments for a person or board charged with the investment of public funds and may be accepted as security for a deposit of public money and, with the interest thereon, are exempt from taxation by the state and a political subdivision or agency of the state.
H. Any law authorizing the imposition or distribution of taxes or fees paid into the school bus routes fund or that affects those taxes and fees shall not be amended or repealed or otherwise directly or indirectly modified so as to impair outstanding bonds secured by a pledge of revenues from those taxes and fees paid into the school bus routes fund, unless the bonds have been discharged in full or provisions have been made for a full discharge. In addition, while any bonds issued by the New Mexico finance authority pursuant to the provisions of this section remain outstanding, the powers or duties of the state transportation commission or the authority shall not be diminished or impaired in any manner that will affect adversely the interests and rights of the holder of such bonds.
I. Bonds issued pursuant to this section shall be paid solely from taxes and fees deposited into the school bus routes fund and shall not constitute a general obligation of the state.
Section 12. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2006.
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