New Mexico vehicle registration fees, weight-distance tax increase July 1

New Mexico vehicle registration fees and weight-distance taxes will increase July 1 for the first time since 2004, generating an estimated $70 million for road maintenance.

New Mexico vehicle registration fees, weight-distance tax increase July 1
New Mexico vehicle registration fees and weight-distance taxes will increase July 1 for the first time since 2004. (Sara KurfeĂź / Unsplash)

Passenger vehicle registration fees will rise 25% and weight-distance taxes will rise 35% beginning July 1, with revenue going to the State Road Fund.

Organ Mountain News report

SANTA FE - New Mexico vehicle registration fees and weight-distance taxes will increase July 1 for the first time in more than two decades, state officials said.

Passenger vehicle registration fees will increase by 25%, while the state’s weight-distance tax will increase by 35%. State officials estimate the increases will generate about $70 million for the State Road Fund, which supports road maintenance and transportation infrastructure.

Current passenger vehicle registration fees range from $21 to $56 per year. Under the increase, those fees will range from about $26 to $70 per year, according to the New Mexico Taxation and Revenue Department.

The increase does not affect off-highway vehicles, trucks, RVs, motorcycles or buses.

State officials said more than half of New Mexico’s roads require maintenance, costing drivers more than $1,000 per year in repairs and wasted fuel.

“New Mexico is one of the few states in the nation that hasn’t increased passenger vehicle registration in fees in decades,” Taxation and Revenue Secretary Stephanie Schardin Clarke said. “Now, we’re strategically increasing tax revenue to improve road conditions around the state, something all New Mexicans will benefit from.”

The state has not increased vehicle registration fees or weight-distance tax rates since 2004. Since then, inflation has averaged more than 75% nationwide, according to the U.S. Bureau of Labor Statistics.

The revenue will support the New Mexico Department of Transportation, which relies on the State Road Fund rather than recurring general fund appropriations for infrastructure maintenance.

“New Mexicans aren’t shy when it comes to talking about roads and we get it,” Acting NMDOT Cabinet Secretary David D. Quintana said. “After decades of underfunding, we’re finally making the kind of sustained investment our communities deserve. This revenue will help us take care of the roads people rely on every day.”

Quintana said the additional revenue will not eliminate the maintenance backlog immediately, but will help the state make steady progress.

MVD customers can receive a 5% discount on vehicle registration fees by renewing online.

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