HB 322 creates two new transportation funds in New Mexico: the Transportation Trust Fund and the Transportation Program Fund. The Trust Fund receives annual distributions from electricity sales tax (starting at 1% and increasing to 2% over time) and adjusted motor vehicle tax revenues (shifting 30% to the Trust Fund after 2028). The Program Fund uses these funds to provide matching money for federal transportation infrastructure projects. Unspent capital project funds from the general budget also revert to the Trust Fund, ensuring ongoing revenue for transportation initiatives.
SB 213 indexes New Mexico's gasoline tax, weight distance tax (for commercial vehicles), and special fuel excise tax to inflation starting July 1, 2028. It requires annual adjustments based on the Consumer Price Index (CPI), calculated by multiplying the current rate by (previous year's CPI / 2026 CPI), rounded down to the nearest cent, while ensuring rates never drop below the previous year's level. This directly affects gasoline retailers, commercial trucking companies, and businesses using special fuels (like diesel or propane) by tying tax rates to inflation rather than fixed amounts. The bill updates existing tax statutes to implement this automatic adjustment mechanism, preventing the real value of these taxes from eroding over time.
SB 217 modifies New Mexico's liquor excise tax system. It imposes a new surtax on liquor retailers and redirects the revenue to create a dedicated Tribal Alcohol Harms Alleviation Fund, which will receive 5% of liquor excise tax revenue starting July 2019. The bill also amends definitions to exclude liquor excise taxes from the calculation of "gross receipts" for other state taxes. This directly affects liquor retailers (through the surtax), tribal governments (receiving new funding), and local governments (which will see adjusted allocations for alcohol treatment services and drug courts). The changes are purely procedural, reallocating existing tax revenue streams rather than creating new taxes or services.
This bill exempts from New Mexico state income tax salaries paid by the U.S. government to residents serving in uniformed services. It directly affects New Mexico residents working in the military (active/reserve army, navy, air force, etc.), Coast Guard, U.S. Public Health Service, NOAA Corps, or state National Guard. The key provision removes state tax liability on these federal salaries for tax returns filed in 2026 and later. The exemption requires taxpayers to report it to the state tax department and is included in official tax expenditure reports.
SB 118 increases the price limits for New Mexico's back-to-school tax holiday, allowing families to buy more items tax-free during the annual sales period. It raises the clothing price limit from $100 to $150 (excluding athletic wear and accessories) and the computer limit from $1,000 to $1,500 (including associated items up to $750). The bill affects shoppers purchasing qualifying school supplies, clothing, and computers between July 1 and the following Sunday. The changes take effect July 1, 2026, and apply to all eligible items sold during the designated tax holiday window.
SB 185 increases New Mexico's gasoline tax from 17 cents to 20 cents per gallon, effective July 1, 2026. This change directly affects all drivers and businesses purchasing gasoline within the state, as the tax applies to every gallon received in New Mexico. The bill amends Section 7-13-3 of the state tax code to update the excise tax rate. The policy change is a straightforward rate adjustment with no additional provisions or exemptions described in the bill text.
SB 133 creates a tax deduction in New Mexico for healthcare practitioners who sell equipment or non-prescription medication directly to patients during office visits. It allows deductions for items used in patient treatment (like medical devices or saline), excluding standard office furniture and computers. To offset lost local tax revenue, the bill requires municipalities and counties to receive compensation based on the total deductions claimed in their areas. The law takes effect July 1, 2026.
SB 89 creates a sales tax exemption for qualifying hunting and fishing supplies purchased in New Mexico between September 8 and December 31 each year. It covers specific low-cost items like fishing tackle ($5 or less individually), camping gear ($30 or less), fishing rods ($75 or less individually), and firearms/ammo, with price limits defined in the bill. This directly benefits New Mexico residents buying these items during the holiday period, as retailers can deduct these sales from their tax obligations. The exemption takes effect July 1, 2026, and excludes franchise business sales.
SB 76 increases New Mexico's gasoline tax from 17 cents to 23 cents per gallon and raises the special fuel excise tax from 21 cents to 26 cents per gallon. This bill directly affects all consumers and businesses purchasing gasoline or special fuels in New Mexico, as it raises the cost per gallon for these products. The key change is the specific tax rate increase for both fuel types, effective July 1, 2026. The bill makes no other policy changes beyond adjusting these excise tax rates.
HB 113, the Renewable Energy Production Tax Act, imposes a 3.75% excise tax on electricity generated from renewable sources (solar, wind, hydropower, geothermal, or qualifying biomass) at commercial facilities in New Mexico. It applies to electricity sold in the wholesale market, with tax calculated based on the monthly average wholesale price, and requires payment by the 25th of the following month. Revenue from this tax will be directed to the Severance Tax Permanent Fund, and the law exempts government entities, tribal lands, and small-scale personal use (under 500 kWh daily). The tax begins on January 1, 2027, affecting commercial renewable energy producers but not residential or exempt entities.
