NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to HB-307, HB374, SB-362 and SB-105

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Bill 503 would transfer one-twelfth of the Motor Vehicle Excise Tax revenue from the general fund to the state road fund for the purpose of completing the four-lane construction of United States Highway 70 from Ruidoso to Roswell. The transfer of the excise tax would become effective at the beginning of FY 2002.

FISCAL IMPLICATIONS

The fiscal impact of transferring one-twelfth of the motor vehicle excise tax would not occur until FY2002. The state general fund's five year revenue estimate shows that the state might expect to receive $103.5 million in FY 2002. Taking one-twelfth of this implies an $8.6 million loss to the general fund and an $8.6 million gain to the road fund.

ADMINISTRATIVE IMPLICATIONS

TRD reports that the proposed changes would have no significant administrative impact on the department.

BT/njw