SENATE BILL 727
47th legislature - STATE OF NEW MEXICO - second session, 2006
INTRODUCED BY
Timothy Z. Jennings
AN ACT
RELATING TO TAXATION; AMENDING THE COMPENSATING TAX EXEMPTION FOR RAILROAD EQUIPMENT; CHANGING THE RATE OF TAX IMPOSED BY THE RAILROAD CAR COMPANY TAX ACT; CHANGING THE METHOD OF VALUATION OF RAILROAD PROPERTY FOR PROPERTY TAX PURPOSES; CREATING THE RAILROAD CROSSING SAFETY FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. [NEW MATERIAL] RAILROAD CROSSING SAFETY FUND CREATED--PURPOSE.--The "railroad crossing safety fund" is created in the state treasury and shall be nonreverting. The fund shall be administered by the department of transportation, and money in the fund is appropriated to the department of transportation for the purpose of implementing safety measures at railroad grade crossings. Expenditures from the fund shall be made on warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the secretary of transportation.
Section 2. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--RAILROAD CROSSING SAFETY FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the railroad crossing safety fund administered by the department of transportation in an amount equal to the net receipts attributable to the tax imposed pursuant to the Railroad Car Company Tax Act."
Section 3. Section 7-9-30 NMSA 1978 (being Laws 1969, Chapter 144, Section 23, as amended) is amended to read:
"7-9-30. EXEMPTION--COMPENSATING TAX--RAILROAD EQUIPMENT, AIRCRAFT AND SPACE VEHICLES.--
A. Exempted from the compensating tax is the use of railroad locomotives, trailers, containers, tenders or cars procured or bought for use in railroad transportation in interstate commerce; provided, however, that the exemption provided pursuant to this subsection shall not apply to the use of any such railroad equipment that is not used directly in interstate commerce.
B. Exempted from the compensating tax is the use of commercial aircraft bought or leased primarily for use in the transportation of passengers or property for hire in interstate commerce.
C. Exempted from the compensating tax is the use of space vehicles for transportation of persons or property in, to or from space."
Section 4. Section 7-11-3 NMSA 1978 (being Laws 1982, Chapter 18, Section 19, as amended) is amended to read:
"7-11-3. IMPOSITION OF TAX--TAX RATE--TAX IN LIEU OF PROPERTY TAXES.--
A. There is imposed on the gross earnings of each organization for the 1996 and subsequent calendar years a tax of [one and one-half] five percent.
B. The tax imposed in Subsection A of this section is in lieu of all property taxes on railway cars owned by an organization."
Section 5. Section 7-36-31 NMSA 1978 (being Laws 1975, Chapter 165, Section 12, as amended) is amended to read:
"7-36-31. SPECIAL METHOD OF VALUATION--OPERATING RAILROAD PROPERTY.--
A. All property owned or leased and used by an operating railroad in its operation if the operating railroad has operations in New Mexico is subject to valuation for property taxation purposes and shall be valued in accordance with the provisions of this section, except for land and land rights other than operating railroad rights of way, sidings and marshalling yards and general buildings and improvements determined not to be an active part of an operating railroad.
B. The [division] department shall value operating railroad property using the [following methods] reproduction cost method of valuation and applying the unit rule of appraisal to the property.
[(1) capitalization of earnings;
(2) market value of stock and debt; or
(3) original cost less depreciation and obsolescence.
C. The division may use one or more, or a combination of, the methods of valuation specified in Paragraphs (1), (2) and (3) of Subsection B of this section in valuing operating railroad property.
D.] C. Land, land rights other than operating railroad rights of way, sidings and marshalling yards, general buildings and improvements determined not to be an active part of an operating railroad shall be valued under the provisions of this article of the Property Tax Code applicable to the property.
[E.] D. The [division] department shall adopt regulations providing for the allocation of net taxable values of operating railroad property to New Mexico and to the governmental units within the state.
[F.] E. The [division] department shall adopt regulations [pursuant to Section 7-38-88 NMSA 1978] to implement the [methods] method of valuation for operating railroad property specified in this section."
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