SENATE BILL 507

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Gerald Ortiz y Pino

AN ACT

RELATING TO TAXATION; INCREMENTALLY INCREASING AND INDEXING THE GASOLINE TAX AND THE SPECIAL FUEL EXCISE TAX.

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

     SECTION 1. Section 7-13-3 NMSA 1978 (being Laws 1971, Chapter 207, Section 3, as amended) is amended to read:

     "7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GASOLINE TAX".--

          A. For the privilege of receiving gasoline in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of gasoline received in New Mexico.

          B. The tax imposed by Subsection A of this section shall be:

                (1) on or before June 30, 2011, seventeen cents ($.17) per gallon received in New Mexico;

                (2) between July 1, 2011 and June 30, 2012, nineteen cents ($.19) per gallon received in New Mexico;

                (3) between July 1, 2012 and June 30, 2013, twenty-one cents ($.21) per gallon received in New Mexico;

                (4) between July 1, 2013 and June 30, 2014, twenty-three cents ($.23) per gallon received in New Mexico; and

                (5) on and after July 1, 2014, the rate determined pursuant to Subsection C of this section.

          C. No later than April 30, 2014 and April 30 of each subsequent year, the department shall calculate the rate of gasoline tax to be imposed as of July 1 of that year. The rate of the gasoline tax per gallon shall be equal to the product, rounded down to the nearest whole cent, of twenty-three cents ($.23) multiplied by a fraction with a numerator equal to the index value for the previous calendar year and a denominator equal to the index value for calendar year 2012. The rate of the gasoline tax shall not be reduced and shall not be increased by more than one cent ($.01) on July 1, 2014 or in any following year. As used in this section, "index value" means the producer price index for highway, street and other heavy construction.

          [C.] D. The tax imposed by this section may be called the "gasoline tax"."

     SECTION 2. Section 7-16A-3 NMSA 1978 (being Laws 1992, Chapter 51, Section 3, as amended) is amended to read:

     "7-16A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS SPECIAL FUEL EXCISE TAX.--

          A. For the privilege of receiving or using special fuel in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of special fuel received in New Mexico.

          B. The tax imposed by Subsection A of this section shall be:

                (1) on or before June 30, 2011, twenty-one cents ($.21) per gallon of special fuel received or used in New Mexico;

                (2) between July 1, 2011 and June 30, 2012, twenty-three cents ($.23) per gallon received in New Mexico;

                (3) between July 1, 2012 and June 30, 2013, twenty-five cents ($.25) per gallon received in New Mexico;

                (4) between July 1, 2013 and June 30, 2014, twenty-seven cents ($.27) per gallon received in New Mexico; and

                (5) on and after July 1, 2014, the rate determined pursuant to Subsection C of this section.

          C. No later than April 30, 2014 and April 30 of each subsequent year, the department shall calculate the rate of special fuel excise tax to be imposed as of July 1 of that year. The rate of the special fuel excise tax per gallon shall be equal to the product, rounded down to the nearest whole cent, of twenty-seven cents ($.27) multiplied by a fraction with a numerator equal to the index value for the previous calendar year and a denominator equal to the index value for calendar year 2012. The rate of the special fuel excise tax shall not be reduced and shall not be increased by more than one cent ($.01) on July 1, 2014 or in any following year. As used in this section, "index value" means the producer price index for highway, street and other heavy construction.

          [C.] D. The tax imposed by this section may be called the "special fuel excise tax"."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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