SENATE BILL 239

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

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO TAXATION; IMPOSING GASOLINE AND SPECIAL FUEL SURTAXES TO PROVIDE ADDITIONAL REVENUE FOR STATE AND LOCAL ROAD CONSTRUCTION AND MAINTENANCE; CREATING THE ROADS EQUAL JOBS FUND FOR STATE ROAD PROJECTS; PROVIDING DISTRIBUTIONS FOR COUNTY AND MUNICIPAL ROAD PROJECTS; MAKING AN APPROPRIATION.

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

     Section 1. A new section of the Gasoline Tax Act is enacted to read:

     "[NEW MATERIAL] ROADS EQUAL JOBS GASOLINE SURTAX.--For the privilege of receiving gasoline in this state, a surtax of six cents ($.06) per gallon is imposed on each gallon of gasoline received in New Mexico that is subject to the gasoline tax imposed pursuant to Section 7-13-3 NMSA 1978. The tax imposed by this section may be called the "roads equal jobs gasoline surtax"."

     Section 2. A new section of the Special Fuels Supplier Tax Act is enacted to read:

     "[NEW MATERIAL] ROADS EQUAL JOBS SPECIAL FUEL SURTAX.--For the privilege of receiving or using special fuel in this state, a surtax of six cents ($.06) per gallon is imposed on each gallon of special fuel received or used in New Mexico that is subject to the special fuel excise tax imposed pursuant to Section 7-16A-3 NMSA 1978. The tax imposed by this section may be called the "roads equal jobs special fuel surtax"."

     Section 3. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] ADDITIONAL DISTRIBUTION--ROADS EQUAL JOBS FUND--CREATED.--

          A. The "roads equal jobs fund" is created as a nonreverting fund in the state treasury. The fund consists of money from taxes distributed to the fund and earnings on investment of the fund. Money in the fund shall not be transferred to any other fund. The department of transportation shall administer the fund, and money in the fund is appropriated to the department of transportation for expenditures as provided in this section. Disbursements from the fund shall be by warrant of the secretary of finance and administration on vouchers signed by the secretary of transportation or the secretary of transportation's authorized representative.

          B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the roads equal jobs fund in an amount equal to five-sixths of the net receipts attributable to the roads equal jobs gasoline surtax and an amount equal to five-sixths of the net receipts attributable to the roads equal jobs special fuel surtax.

          C. The roads equal jobs fund shall be used solely for the acquisition of rights of way or the planning, designing, engineering, construction, improvement or maintenance of state highway projects. Annually, the department of transportation shall estimate distributions to the fund and shall select state highway construction or maintenance projects in each of the six districts so that an equal amount from the fund is expended in each district."

     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 AND SURTAXES 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 hundredths percent of the net receipts attributable to the [taxes] gasoline tax, 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. [This] Except as provided in Subsection D of this section, the distribution provided in Subsection B of this section 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] department of transportation [department] 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] The distribution provided in Subsection B of this section 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.

          E. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to counties and municipalities in an amount equal to one-sixth of the net receipts attributable to the roads equal jobs gasoline surtax and an amount equal to one-sixth of the net receipts attributable to the roads equal jobs special fuel surtax as provided in Subsection F of this section.

          F. The amount determined in Subsection E of this section shall be distributed to the treasurers of municipalities and counties in the proportion that taxable gasoline and special fuel sales in each of the municipalities and counties bears to the aggregate taxable gasoline and special fuel sales in all municipalities and counties; provided that for counties other than H class counties, the amount shall be based on the amount of sales outside of incorporated municipalities. The distribution shall be paid into a separate road fund in the municipal treasury or county road fund and shall be used only for construction, reconstruction, resurfacing or other improvements or maintenance of public roads, streets, alleys and bridges."

     Section 5. APPLICABILITY.--The distributions pursuant to this act apply to receipts from the roads equal jobs gasoline surtax and the roads equal jobs special fuel surtax that are attributable to transactions subject to the surtaxes on or after July 1, 2010.

     Section 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.

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