HB0410

HOUSE BILL 410

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

Patricia A. Lundstrom

AN ACT

RELATING TO TAXATION; PROVIDING FOR A TEMPORARY INCREASE IN THE MOTOR VEHICLE EXCISE TAX TO FUND THE COMPLETION OF MAJOR INVESTMENT HIGHWAY PROJECTS; CREATING THE MAJOR INVESTMENT HIGHWAY PROJECT FUND; AUTHORIZING THE ISSUANCE OF MAJOR INVESTMENT HIGHWAY PROJECT BONDS; MAKING AN APPROPRIATION.

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.--

A. Until July 1, 2028, the rate of the motor vehicle excise tax is 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.

B. On and after July 1, 2028, the rate of the motor vehicle excise tax is three 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.--

A. Until July 1, 2028, the receipts from the tax and any associated interest and penalties shall be deposited in the motor vehicle suspense fund. As of the end of each month, the net receipts attributable to:

(1) seventy-five percent of the receipts attributable to the tax and associated penalties and interest shall be distributed to the general fund; and

(2) twenty-five percent of the receipts from the tax and any associated interest and penalties shall be distributed to the major investment highway project fund created pursuant to Section 67-3-59.5 NMSA 1978.

B. On and after July 1, 2028, 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, the net receipts attributable to the tax and associated penalties and interest shall be distributed to the general fund."

SECTION 3. A new Section 67-3-59.5 NMSA 1978 is enacted to read:

"67-3-59.5. [NEW MATERIAL] MAJOR INVESTMENT HIGHWAY PROJECT FUND CREATED--USE.--

A. The "major investment highway project fund" is created in the state treasury and shall be administered by the department. The fund shall consist of money from taxes distributed to the fund. Earnings on investment of the fund shall be credited to the fund. Balances in the fund at the end of any fiscal year shall remain in the fund after all required debt service payments and other required debt service and reserve fund deposits have been made for bonds issued pursuant to Section 67-3-59.6 NMSA 1978; provided that when the bonds have been retired, balances in the fund shall revert to the state road fund. The amounts that revert to the state road fund shall be used for the acquisition of rights of way, planning, design, engineering, construction, improvement and maintenance for state highway projects.

B. Except as provided in Subsection E of Section 67-3-59.6 NMSA 1978, money in the fund shall be used solely for payments and other deposits of debt service or for reserve requirements for the bonds issued for the purpose of the completion of construction and improvement of major improvement highway projects. The bonds authorized by this section may be called "major investment highway project bonds".

C. The taxes required by law to be distributed to the major investment highway project fund may be pledged for the payment of major investment highway project bonds issued pursuant to Section 67-3-59.6 NMSA 1978 for the major investment highway projects authorized in Subsection B of this section.

D. The state transportation commission may issue and sell major investment highway project bonds in compliance with the provisions of Section 67-3-59.6 NMSA 1978 when the commission determines the need for the issuance of the bonds, in an amount not to exceed the following amounts for the following major investment highway projects:

(1) thirty-five million dollars ($35,000,000) for new six-lane construction of interstate 25 from mile point 0 to mile point 6;

(2) fifteen million dollars ($15,000,000) for new six-lane construction of United States route 70 from mile point 148.8 to mile point 150.1;

(3) fifty million dollars ($50,000,000) for reconstruction of United States route 54 from mile point 130 to mile point 163;

(4) twenty-five million dollars ($25,000,000) to widen each direction of interstate 25 to six lanes from Rio Bravo boulevard south to the future Mesa del Sol interchange;

(5) twenty-five million dollars ($25,000,000) to construct a new interchange on interstate 25 at Mesa del Sol;

(6) twenty-five million dollars ($25,000,000) to replace the bridge on United States route 54 at mile point 325.3;

(7) twenty-five million dollars ($25,000,000) for rehabilitation and reconstruction at the junction of United States routes 64 and 87;

(8) twenty-five million dollars ($25,000,000) to complete the capacity and safety enhancement of United States route 64 from mile point 56 to mile point 60;

(9) twenty-five million dollars ($25,000,000) for reconstruction of New Mexico state road 68 from Espanola to Velarde; and

(10) fifty million dollars ($50,000,000) for new four-lane construction of United States route 491 from mile point 25.9 to mile point 41.8.

E. The state transportation commission shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible upon a finding by the commission that the project has been developed sufficiently to justify the issuance and that the project can proceed to contract within a reasonable time. The proceeds from the sale of the bonds are appropriated to the department for the purposes described in this section and in Section 67-3-59.6 NMSA 1978."

SECTION 4. A new Section 67-3-59.6 NMSA 1978 is enacted

to read:

"67-3-59.6. [NEW MATERIAL] MAJOR INVESTMENT HIGHWAY PROJECT BONDS--ISSUANCE--LIMITS--APPROVAL.--

A. In order to provide funds to finance the major investment highway projects identified in Section 67-3-59.5 NMSA 1978, the state transportation commission is authorized, subject to the limitations of this section and Section 67-3-59.5 NMSA 1978, to issue major investment highway project bonds from time to time, payable from taxes required by law to be paid into the major investment highway project fund.

B. The state transportation commission may issue bonds to refund other bonds issued pursuant to this section or by exchange or current or advance refunding.

C. The total aggregate outstanding principal amount of bonds issued from time to time pursuant to this section shall not, without additional authorization of the state legislature, exceed three hundred million dollars ($300,000,000).

D. The state transportation commission shall determine all terms, covenants and conditions of the bonds; provided that the project design life of a major investment highway project meets or exceeds the life of the bonds issued for each project. The state transportation commission may enter into interest rate exchange agreements, interest rate swap contracts, insurance agreements, remarketing agreements and any other agreements deemed necessary in connection with the issuance of the bonds.

E. Proceeds of the bonds and amounts on deposit in the major investment highway project fund may be used to pay expenses incurred in the preparation, administration, issuance and sale of the bonds and, together with the earnings on the proceeds of the bonds, may be used to pay rebate, penalty, interest and other obligations relating to the bonds and the proceeds of the bonds under the Internal Revenue Code of 1986, as amended.

F. This section is full authority for the issuance and sale of the bonds, and the bonds shall not be invalid for any irregularity or defect in the proceedings for their issuance and sale and shall be incontestable in the hands of bona fide purchasers or holders of the bonds for value.

G. The bonds shall be legal investments for a person or board charged with the investment of public funds and may be accepted as security for a deposit of public money and, with the interest thereon, are exempt from taxation by the state or a political subdivision or agency of the state.

H. Any law authorizing the imposition or distribution of taxes or fees paid into the major investment highway project fund or that affects those taxes and fees shall not be amended or repealed or otherwise directly or indirectly modified so as to impair outstanding bonds secured by a pledge of revenues from those taxes and fees paid into the major investment highway project fund, unless the bonds have been discharged in full or provisions have been made for a full discharge. In addition, while any bonds issued by the state transportation commission pursuant to the provisions of this section remain outstanding, the powers or duties of the state transportation commission shall not be diminished or impaired in any manner that will affect adversely the interests and rights of the holder of such bonds.

I. Bonds issued pursuant to this section shall not constitute a general obligation of the state and shall be paid solely from taxes and fees deposited into the major investment highway project fund."

SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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