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

SPONSOR Taylor

ORIGINAL DATE

LAST UPDATED

2/14/2007

HB

SHORT TITLE International Vehicle Title Issues

SB 346

ANALYST Schuss

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

Unknown

Unknown Recurring

General

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Public Safety (DPS)

Did Not Respond

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

Senate Bill 346 amends Section 66-3-1 NMSA 1978 (Vehicles Subject to Registration;

exceptions) to address the issue of title and registration of vehicles owned by a carrier that is

from a jurisdiction that is not a participant in the International Fuel Tax Agreement, that is

authorized by the United States government to conduct cross-border operations beyond the

commercial border zone pursuant to the provisions of the North America Free Trade Agreement

and that identifies New Mexico as the carrier’s base jurisdiction.

SB 346 declares an emergency

FISCAL IMPLICATIONS

An analysis from TRD will be necessary to determine if there will be an impact, and if so, how

significant the impact will be.

Senate Bill 346 – Page

2

SIGNIFICANT ISSUES

Section 66-3-1 NMSA 1978 (Vehicles Subject to Registration; exceptions) is amended to state

that a certificate of title is not required for a vehicle type subject to registration owned by a

carrier that is from a jurisdiction that is not a participant in the International Fuel Tax

Agreement, that is authorized by the United States government to conduct cross-border

operations beyond the commercial border zone pursuant to the provisions of the North America

Free Trade Agreement and that identifies New Mexico as the carrier’s base jurisdiction. The bill

also exempts these vehicle types from making application for registration and a certificate of

title.

DPS notes that the provisions in NAFTA do not allow carriers go beyond the Commercial

Border Zone due to Mexico not being part of the International Registration Plan (IRP) and the

International Fuel Tax Agreement (IFTA).

ADMINISTRATIVE IMPLICATIONS

According to DPS, the administrative implications will be to ensure compliance with the NM

Weight Distance Tax on a quarterly basis.

BS/mt