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Commuter train might be paid by gross receipts taxes
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SANTA FE Gov. Bill Richardson has changed his mind and now supports a proposal to use gross receipts taxes to pay for commuter train operations.
The state must find a source of financing for the New Mexico Rail Runner Express because federal money, which has covered most of the cost, will dry up next year.
The state Department of Transportation has been considering forming a regional transit district that could impose a gross receipts tax levy with the approval of area voters.
The state Transportation Commission "made a compelling argument that there is strong public support for these districts to help pay for operations and maintenance of the Rail Runner, as well as other public transportation options to support it," Gilbert Gallegos, a spokesman for Richardson, said Friday.
The commission sent Richardson a letter Wednesday, urging him to support a regional transit district.
The commission said its request was based on public support received during a series of public meetings held around the state by the Transportation Technical Committee and the Transportation Future's Task Force.
Transportation Secretary Rhonda Faught said Sept. 27 that a -cent tax levy - in a transit district covering Bernalillo, Santa Fe, Sandoval and Valencia counties - would provide enough revenue for the projected $20 million yearly operating cost of commuter rail after it is extended to Santa Fe.
Speaking from the Democratic presidential campaign trail in September, Richardson shot down the tax proposal shortly after Faught spoke. He said he wanted to pay for Rail Runner operations out of the state's budget and would apply for new federal aid.
The train currently runs between Belen and Bernalillo and costs almost $10 million. About $8 million in federal money goes for commuter rail.
Faught has said that ends in 2009 and it is uncertain how much federal aid, if any, the state will be able to get in the future for commuter rail operations.
Construction has started on the $250 million commuter rail extension to Santa Fe and the project is scheduled to be completed by the end of 2008.

