This bill amends existing taxation laws in New Mexico to introduce indexing for the gasoline tax, weight distance tax, and special fuel excise tax. Specifically, it establishes fixed rates for these taxes until July 1, 2028, after which the rates will be adjusted annually based on the consumer price index (CPI). For the gasoline tax, the rate will be set at seventeen cents ($.17) per gallon until the specified date, and thereafter will be calculated using a formula that considers the CPI from the previous year relative to the CPI from 2026. Similarly, the weight distance tax for motor vehicles and buses will follow a similar structure, with rates established until July 1, 2028, and then adjusted based on the CPI.

The bill also includes provisions for the special fuel excise tax, which will be set at twenty-one cents ($.21) per gallon until July 1, 2028, with subsequent adjustments based on the CPI. The adjustments ensure that the tax rates do not fall below the previous year's rates. The language of the bill clarifies the definitions and calculations involved in determining these tax rates, emphasizing the use of the consumer price index as a key factor in future adjustments. Overall, the bill aims to create a more responsive taxation system that reflects economic conditions over time.

Statutes affected:
introduced version: 7-13-3, 7-15A-6, 7-15A-7, 7-16A-3