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

SPONSOR Gonzales

ORIGINAL DATE

LAST UPDATED

1/23/07

3/06/07 HB 266/aHTRC

SHORT TITLE

Liquor Tax Distribution To Local DWI Fund

SB

ANALYST Francis

Relates to Appropriation in the General Appropriation Act

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

(3,122.0)

(3,184.0) Recurring General Fund

$3,122.0

$3,184.0 Recurring Local DWI

Grant Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Taxation and Revenue Department (TRD)

Responses Received From

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of HTRC Amendment

The House Taxation and Revenue Committee amends House Bill 266 by changing the

percentage distribution to the local government DWI fund to 41.5 percent. Current law is a

34.57 percent distribution and the original bill proposed 45 percent.

Synopsis of Bill

House Bill 266 increases the percentage distribution of liquor excise taxes going to the local

DWI grant fund to 45 percent. The level is currently 34.57 percent with the remainder going to

the general fund.

The bill is effective July 1, 2007.

House Bill 266/aHTRC – Page

2

FISCAL IMPLICATIONS

According to consensus revenue estimates, the liquor excise tax is expected to generate $45.0

million in FY08, the first year this bill would apply. Of that under current law, $29.5 million

would be distributed to the general fund and $15.6 million to the Local DWI Grant Fund based

on a percentage distribution of 65.43 percent to the general fund and 34.57 percent to the Local

DWI Grant Fund. Increasing the share that goes to the DWI fund necessarily lowers the amount

going to the general fund. There is an FY08 impact of $3.1 million in higher revenues for the

DWI fund and an identical $3.1 million negative impact on the general fund.

Distributions from the DWI fund are based on a series of statutory distributions with the

remaining going to the counties based on a distribution defined by law (Section 11-6A-6 NMSA

1978) based on the number of DWI crashes and the amount of retail gross receipts. HB266

increases the amounts distributed to counties by $3.1 million. Table one shows the current and

proposed distribution by county.

ADMINISTRATIVE IMPLICATIONS

TRD reports that minor system changes will be required but report no additional operating

appropriation required.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Current recommendations for the General Appropriations Act of 2007 include an appropriation

to the drug courts and the removal of the drug courts from the statutory distribution of the Local

DWI Grant Fund. The amount distributed to drug courts currently is $1.5 million which, if

removed from the distribution scheme, would result in an increased distribution to counties of

$1.5 million. This would be in addition to the increase HB266 provides counties.

Table 1: Fiscal Impact of HB 266a

Current Law

HB266a

Difference

LIQUOR EXCISE TAX REVENUE

45,049,610

$

45,049,610

$

-

$

General Fund

29,475,960

26,354,022

(3,121,938)

$

Local DWI Fund

15,573,650

18,695,588

3,121,938

$

Distribution

Local Government Division - Grants

1,900,000

1,900,000

-

$

Local Government Division - Admin

600,000

600,000

-

$

Local Government Division - Interlock

300,000

300,000

-

$

Detox and treatment programs

Bernalillo

1,700,000

1,700,000

-

$

San Juan

300,000

300,000

-

$

Santa Fe

300,000

300,000

-

$

Rio Arriba

200,000

200,000

-

$

Sandoval

150,000

150,000

-

$

Socorro

150,000

150,000

-

$

Drug Courts

1,500,000

1,500,000

-

$

Formula Distribution

8,473,650

11,595,588

3,121,938

$

NF/csd