Bill > SB213

This bill proposes to adjust the tax rates for gasoline, the weight distance tax, and the special fuel excise tax in New Mexico. Currently, these taxes have fixed rates, but starting July 1, 2028, their rates will be adjusted annually based on inflation. The adjustment will be calculated by the state's department of taxation, using the consumer price index (CPI), which is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, as published by the U.S. Bureau of Labor Statistics. Specifically, the new tax rate will be determined by multiplying the current rate by a fraction where the numerator is the CPI from the previous year and the denominator is the CPI from calendar year 2026. This ensures that the tax rates will increase over time to keep pace with rising costs, but the bill also includes a provision that the tax rate will not decrease from the previous year's rate. The weight distance tax, which is levied on heavier vehicles based on the distance they travel, will also have its rates adjusted in a similar manner, with specific provisions for vehicles used in one-way hauls.

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=213&year=26