SB 2 New Mexico Senate · 2026 Regular Session

STATE HIGHWAY PROJECT BONDS

SB 2 increases funding for New Mexico's highway projects by raising fees on vehicle registrations and commercial truck taxes. It raises weight-distance tax rates for commercial trucks (affecting freight companies), increases standard passenger vehicle registration fees, and adds new annual fees for electric vehicles ($70-$90) and plug-in hybrids ($35-$45) starting in 2027. All new revenue from these changes goes directly to the State Road Fund to support highway improvements. The bill specifically targets commercial truck operators, all vehicle owners, and electric vehicle owners, with fee amounts varying by vehicle type and registration year.

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Jan 2026

Senate Passage

Jan 2026

House Passage

Jan 2026

Signed into Law

Feb 2026

Introduced Jan 20, 2026 Signed Feb 7, 2026

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What changed between versions

introduced version → Final Version · 6 edits

MODERATE

This bill significantly increases revenue for New Mexico's highway projects by raising weight distance taxes on heavy trucks and adding new registration fees for electric and plug-in hybrid vehicles. The changes expand the tax brackets for heavy vehicles and establish a phased fee structure for alternative fuel vehicles to fund transportation infrastructure improvements.

Scope change

The bill expands the scope of taxation to include additional vehicle weight categories and introduces new fees specifically for electric and plug-in hybrid vehicles that were not previously subject to these charges.

FISCAL

Weight distance tax rates for heavy trucks were increased across all weight classes, with the highest bracket (78,001+ lbs) rising from 59.10 to 59.10 mills per mile and new brackets added for vehicles between 70,001-78,000 lbs.

New annual registration fees were established for electric vehicles ($70-$90) and plug-in hybrid electric vehicles ($35-$45), with fees increasing over time starting in 2027.

ELIGIBILITY

The one-way haul tax reduction provision was retained but now applies to the updated tax schedule, maintaining the 2/3 tax rate for vehicles used primarily for one-way hauling with 45%+ empty mileage.

REQUIREMENT

New requirements were added for the Department of Transportation to include a report on highway project selection and priorities financed by bonds in its annual budget request.

DEFINITION

New definitions were established for electric vehicles and plug-in hybrid electric vehicles based on fuel type or powertrain classification through VIN decoding processes.

TIMELINE

Specific implementation dates were set for the new electric and hybrid vehicle fees, beginning January 1, 2027, with annual increases scheduled through 2029.

Floor votes · Senate Jan 23, 2026 · House Jan 30, 2026

How they voted

27–9

Passed · 2 other

Total votes 38

Jan 23, 2026

D Democratic22

22 Yea

100% Yea

R Republican16

5 Yea 9 Nay 2

56% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 7, 2026

Signed into law

Signed

executive

Jan 30, 2026

Lower · Passed

passed House

lower

Jan 29, 2026

Lower · Passed

DO PASS committee report adopted

lower

Jan 26, 2026

Introduced

Sent to House Transportation, Public Works & Capital Improvements Committee

lower

Jan 23, 2026

Upper · Passed

passed Senate

upper

Jan 22, 2026

Upper · Passed

DO PASS, as amended, committee report adopted

upper

Jan 20, 2026

Introduced

Sent to Senate Committees' Committee & Senate Finance Committee

upper

5 primary · 0 co-sponsors