This bill seeks to improve highway project financing in New Mexico by granting the State Transportation Commission additional bonding authority for projects listed in the Statewide Transportation Improvement Program. It requires the Department of Transportation to include a report on the selection and prioritization of highway projects funded by bonds in its annual budget request. To support this initiative, the bill proposes an increase in the weight distance tax for motor vehicles (excluding buses) and raises registration fees for passenger vehicles. It also introduces new registration fees for electric and plug-in hybrid electric vehicles, directing the collected fees to the State Road Fund.

Moreover, the bill amends existing laws concerning the tax rate for motor vehicles and the distribution of motor vehicle fees. It establishes a new section imposing additional annual fees for electric and plug-in hybrid electric vehicles, which will increase incrementally over the coming years. The bill also revises the distribution formula for motor vehicle fees to ensure appropriate allocation to state and local entities, including the state road fund and local government road funds. Additionally, it outlines the authority of the State Transportation Commission to issue bonds for state highway projects, including caps on bond amounts and an approval process for bond issuance. The effective dates for various provisions of the bill are set for July 1, 2026, and January 1, 2027.

Statutes affected:
introduced version: 7-15A-6, 66-6-2, 66-6-23, 66-6-23.1, 67-3-59.1
Final Version: 7-15A-6, 66-6-2, 66-6-23, 66-6-23.1, 67-3-59.1