SENATE BILL 303

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Michael S. Sanchez

AN ACT

RELATING TO TAXATION; INCREASING THE MOTOR VEHICLE EXCISE TAX; PROVIDING FOR A DISTRIBUTION OF THE MOTOR VEHICLE EXCISE TAX TO THE LOTTERY TUITION 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 and seventy-five hundredths 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, the net receipts attributable to:

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

          B. twenty percent of the receipts attributable to the tax and associated penalties and interests shall be distributed to the lottery tuition fund."

     SECTION 3. APPLICABILITY.--The distributions pursuant to

Section 2 of this act apply to receipts from the motor vehicle excise tax that are attributable to sales that occur on or after July 1, 2014.

     SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2014.

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