HOUSE BILL 74
51st legislature - STATE OF NEW MEXICO - second session, 2014
INTRODUCED BY
Roberto "Bobby" J. Gonzales
AN ACT
RELATING TO TAXATION; PROVIDING FOR A TEMPORARY INCREASE IN THE GASOLINE TAX AND THE SPECIAL FUEL 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 7-1-6.7 NMSA 1978 (being Laws 1994, Chapter 5, Section 2, as amended) is amended to read:
"7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to four and seventy-nine hundredths percent of the taxable gross receipts attributable to the sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to twenty-six hundredths percent of gasoline taxes, exclusive of penalties and interest, collected pursuant to the Gasoline Tax Act, except that from July 1, 2014 through the collection of taxes for June 2024, the distribution shall be made in an amount equal to twenty-hundredths percent of those taxes, exclusive of penalties and interest.
C. From July 1, 2013 through June 30, 2018, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to
forty-six thousandths percent of the net receipts attributable to the gross receipts tax distributable to the general fund.
D. A distribution pursuant to Section 7-1-6.1 NMSA
1978 shall be made to the state aviation fund from the net
receipts attributable to the gross receipts tax distributable
to the general fund in an amount equal to:
(1) eighty thousand dollars ($80,000) monthly from July 1, 2007 through June 30, 2008;
(2) one hundred sixty-seven thousand dollars
($167,000) monthly from July 1, 2008 through June 30, 2009; and
(3) two hundred fifty thousand dollars
($250,000) monthly after July 1, 2009."
SECTION 2. Section 7-1-6.8 NMSA 1978 (being Laws 1983, Chapter 211, Section 13, as amended) is amended to read:
"7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the motorboat fuel tax fund in an amount equal to thirteen-hundredths [of one] percent of the net receipts attributable to the gasoline tax, except that from July 1, 2014 through the collection of taxes for June 2024, the distribution shall be made in an amount equal to ten-hundredths percent of those net receipts."
SECTION 3. 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 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, exclusive of penalties and interest, imposed by the Gasoline Tax Act, except that from July 1, 2014 through the collection of taxes for June 2024, the distribution shall be made in an amount equal to eight and two-hundredths percent of those net receipts, exclusive of penalties and interest.
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. Except as provided in Subsection D of this section, this distribution 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 distribution 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."
SECTION 4. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter 211, Section 15, as amended) is amended to read:
"7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, surcharges, penalties and interest imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes, fees, penalties and interest imposed pursuant to the Special Fuels Supplier Tax Act and the Alternative Fuel Tax Act less:
(1) the amount distributed to the state aviation fund pursuant to Subsection B of Section 7-1-6.7 NMSA 1978;
(2) the amount distributed to the motorboat fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;
(3) the amount distributed to municipalities and counties pursuant to Subsection A of Section 7-1-6.9 NMSA 1978;
(4) the amount distributed to the county government road fund pursuant to Section 7-1-6.19 NMSA 1978;
(5) the amount distributed to the local governments road fund pursuant to Section 7-1-6.39 NMSA 1978;
(6) the amount distributed to the municipalities pursuant to Section 7-1-6.27 NMSA 1978;
(7) the amount distributed to the municipal arterial program of the local governments road fund pursuant to Section 7-1-6.28 NMSA 1978;
(8) the amount distributed to a qualified tribe pursuant to a gasoline tax sharing agreement entered into between the secretary of transportation and the qualified tribe pursuant to the provisions of Section 67-3-8.1 NMSA 1978; [and]
(9) the amount distributed to the general fund pursuant to Section 7-1-6.44 NMSA 1978; and
(10) the amount distributed to the major investment highway project fund pursuant to Section 9 of this 2014 act.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, interest and penalties from the Weight Distance Tax Act."
SECTION 5. Section 7-1-6.19 NMSA 1978 (being Laws 1991, Chapter 9, Section 15, as amended) is amended to read:
"7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND CREATED.--
A. There is created in the state treasury the "county government road fund".
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county government road fund in an amount equal to five and seventy-six hundredths percent of the net receipts attributable to the gasoline tax, except that from July 1, 2014 through the collection of taxes for June 2024, the distribution shall be made in an amount equal to four and forty-five hundredths percent of those net receipts."
SECTION 6. Section 7-1-6.27 NMSA 1978 (being Laws 1991, Chapter 9, Section 20, as amended) is amended to read:
"7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities for the purposes and amounts specified in this section in an aggregate amount equal to five and seventy-six hundredths percent of the net receipts attributable to the gasoline tax, except that from July 1, 2014 through the collection of taxes for June 2024, the distribution shall be made in an amount equal to four and forty-five hundredths percent of those net receipts.
B. The distribution authorized in this section shall be used for the following purposes:
(1) reconstructing, resurfacing, maintaining, repairing or otherwise improving existing alleys, streets, roads or bridges, or any combination of the foregoing; or laying off, opening, constructing or otherwise acquiring new alleys, streets, roads or bridges, or any combination of the foregoing; provided that any of the foregoing improvements may include, but are not limited to, the acquisition of rights of way;
(2) to provide matching funds for projects subject to cooperative agreements with the [state highway and] department of transportation [department] pursuant to Section 67-3-28 NMSA 1978; and
(3) for expenses of purchasing, maintaining and operating transit operations and facilities, for the operation of a transit authority established by the Municipal Transit Law and for the operation of a vehicle emission inspection program. A municipality may engage in the business of the transportation of passengers and property within the political subdivision by whatever means the municipality may decide and may acquire cars, trucks, motor buses and other equipment necessary for operating the business. A municipality may acquire land, erect buildings and equip the buildings with all the necessary machinery and facilities for the operation, maintenance, modification, repair and storage of the cars, trucks, motor buses and other equipment needed. A municipality may do all things necessary for the acquisition and the conduct of the business of public transportation.
C. For the purposes of this section:
(1) "computed distribution amount" means the distribution amount calculated for a municipality for a month pursuant to Paragraph (2) of Subsection D of this section prior to any adjustments to the amount due to the provisions of Subsections E and F of this section;
(2) "floor amount" means four hundred seventeen dollars ($417);
(3) "floor municipality" means a municipality whose computed distribution amount is less than the floor amount; and
(4) "full distribution municipality" means a municipality whose population at the last federal decennial census was at least two hundred thousand.
D. Subject to the provisions of Subsections E and F of this section, each municipality shall be distributed a portion of the aggregate amount distributable under this section in an amount equal to the greater of:
(1) the floor amount; or
(2) eighty-five percent of the aggregate amount distributable under this section times a fraction, the numerator of which is the municipality's reported taxable gallons of gasoline for the immediately preceding state fiscal year and the denominator of which is the reported total taxable gallons for all municipalities for the same period.
E. Fifteen percent of the aggregate amount distributable under this section shall be referred to as the "redistribution amount". Beginning in August 1990, and each month thereafter, from the redistribution amount there shall be taken an amount sufficient to increase the computed distribution amount of every floor municipality to the floor amount. In the event that the redistribution amount is insufficient for this purpose, the computed distribution amount for each floor municipality shall be increased by an amount equal to the redistribution amount times a fraction, the numerator of which is the difference between the floor amount and the municipality's computed distribution amount and the denominator of which is the difference between the product of the floor amount multiplied by the number of floor municipalities and the total of the computed distribution amounts for all floor municipalities.
F. If a balance remains after the redistribution amount has been reduced pursuant to Subsection E of this section, there shall be added to the computed distribution amount of each municipality that is neither a full distribution municipality nor a floor municipality an amount that equals the balance of the redistribution amount times a fraction, the numerator of which is the computed distribution amount of the municipality and the denominator of which is the sum of the computed distribution amounts of all municipalities that are neither full distribution municipalities nor floor municipalities."
SECTION 7. Section 7-1-6.28 NMSA 1978 (being Laws 1991, Chapter 9, Section 22, as amended) is amended to read:
"7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the municipal arterial program of the local governments road fund created in Section 67-3-28.2 NMSA 1978 in an amount equal to one and forty-four hundredths percent of the net receipts attributable to the gasoline tax, except that from July 1, 2014 through the collection of taxes for June 2024, the distribution shall be made in an amount equal to one and eleven-hundredths percent of those net receipts."
SECTION 8. Section 7-1-6.39 NMSA 1978 (being Laws 1995, Chapter 6, Section 9, as amended) is amended to read:
"7-1-6.39. DISTRIBUTION OF SPECIAL FUEL EXCISE TAX TO LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the local governments road fund in an amount equal to nine and fifty-two hundredths percent of the net receipts attributable to the taxes, exclusive of penalties and interest, from the special fuel excise tax imposed by the Special Fuels Supplier Tax Act, except that from July 1, 2014 through the collection of taxes for June 2024, the distribution shall be made in an amount equal to seven and sixty-nine hundredths percent of those net receipts, exclusive of penalties and interest."
SECTION 9. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--MAJOR INVESTMENT HIGHWAY PROJECT FUND.--
A. Beginning July 1, 2014 and ending with the receipts collected for June 2024, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the major investment highway project fund created in Section 12 of this 2014 act in an amount equal to twenty-two and seventy-three hundredths percent of the net receipts attributable to the gasoline tax.
B. Beginning July 1, 2014 and ending with the receipts collected for June 2024, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the major investment highway project fund created in Section 12 of this 2014 act in an amount equal to nineteen and twenty-three hundredths percent of the net receipts attributable to the special fuel excise tax."
SECTION 10. 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 seventeen cents ($.17) per gallon received in New Mexico] is:
(1) through June 30, 2024, twenty-two cents ($.22) per gallon received in New Mexico; and
(2) on and after July 1, 2024, seventeen cents ($.17) per gallon received in New Mexico.
C. The tax imposed by this section may be called the "gasoline tax"."
SECTION 11. 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 twenty-one cents ($.21) per gallon of special fuel received or used in New Mexico] is:
(1) through June 30, 2024, twenty-six cents ($.26) per gallon received or used in New Mexico; and
(2) on and after July 1, 2024, twenty-one cents ($.21) per gallon received or used in New Mexico.
C. The tax imposed by this section may be called the "special fuel excise tax"."
SECTION 12. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read:
"[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 not revert and 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 13 of this 2014 act; 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 13 of this 2014 act, 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 highways. 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 13 of this 2014 act for the major investment highway projects authorized in Section 14 of this 2014 act."
SECTION 13. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read:
"[NEW MATERIAL] MAJOR INVESTMENT HIGHWAY PROJECT BONDS--ISSUANCE--LIMITS--APPROVAL.--
A. To finance the major investment highway projects identified in Section 14 of this 2014 act, the state transportation commission may, subject to the limitations of this section and Section 12 of this 2014 act, issue major investment highway project bonds from time to time, payable solely 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 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 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 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 deposited into the major investment highway project fund."
SECTION 14. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read:
"[NEW MATERIAL] AUTHORIZED MAJOR INVESTMENT HIGHWAY PROJECTS.--
A. The state transportation commission may issue and sell major investment highway project bonds in compliance with the provisions of Section 13 of this 2014 act 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.
B. The state transportation commission shall schedule the issuance and sale of the bonds as expeditiously and as economically as 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 13 of this 2014 act."
SECTION 15. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2014.