HOUSE BILL 271

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Roberto "Bobby" J. Gonzales

AN ACT

RELATING TO TAXATION; INCREASING THE MOTOR VEHICLE EXCISE TAX; DISTRIBUTING A PORTION OF THE INCREASE IN EXCISE TAX TO THE STATE ROAD FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 7-14-4 NMSA 1978 (being Laws 1988, Chapter 73, Section 14) is amended to read:

     "7-14-4. DETERMINATION OF AMOUNT OF MOTOR VEHICLE EXCISE TAX.--The rate of the motor vehicle excise tax is [three] four percent and is applied to the price paid for the vehicle. If the price paid does not represent the value of the vehicle in the condition that existed at the time it was acquired, the tax rate shall be applied to the reasonable value of the vehicle in such condition at such time. However, allowances granted for vehicle trade-ins may be deducted from the price paid or the reasonable value of the vehicle purchased."

     Section 2. Section 7-14-10 NMSA 1978 (being Laws 1988, Chapter 73, Section 20, as amended) is amended to read:

     "7-14-10. DISTRIBUTION OF PROCEEDS.--The receipts from the tax and any associated interest and penalties shall be deposited in the "motor vehicle suspense fund", hereby created in the state treasury. As of the end of each month:

          A. eighty-seven and one-half percent of the net receipts attributable to the tax and associated penalties and interest shall be distributed to the general fund; and

          B. twelve and one-half percent of the net receipts

attributable to the tax and associated penalties and interest

shall be distributed to the state road fund."

     Section 3. APPLICABILITY.--The distribution pursuant to Section 2 of this act applies to receipts from the motor vehicle excise tax that are attributable to transactions subject to the tax on or after July 1, 2010.

     Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.

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