SB 228: GAS TAX INCREASE, INDEX & DISTRIBUTION

An Act Relating To Taxation; Incrementally Increasing And Indexing The Gasoline Tax And The Special Fuel Excise Tax; Providing A Distribution To The Local Governments Road Fund From The Gasoline Tax And The Special Fuel Excise Tax Beginning July 1, 2019.

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MILD SB 228
GAS TAX INCREASE, INDEX & DISTRIBUTION

Legislative URL:

SB 228 on nmlegis.gov

Emergency Clause:

No

Germane:

Yes

Location:

SCORC

Action:

[2] SCC/SCORC/SFC-SCC [4]germane-SCORC API.

Issue(s):

Energy, Transportation

Related Legislators

Bill Sponsor:

John Arthur Smith

Related Documents

Downloads:

Introduced
SCC Committee Report
Fiscal Impact Report

Summary

This bill will incrementally increase and index the gasoline tax and the special fuel excise tax. Beginning in 2019, the gasoline tax increases from the current $.17/gallon to $.30/gallon by 2024 and is then indexed. Beginning in 2019, the special fuels tax increases from the current $.21/gallon to $.34/gallon by 2024 and is then indexed.

The bill also increases the amounts to be distributed to the Local Governments Road Fund beginning in 2019 from the revenues generated by the gasoline tax and the special fuels excise tax.

One potential benefit of this bill might be that it could increase New Mexico’s revenues. Another is that as taxes on fuel increase, the public may demand more fuel-efficient vehicles and/or make their driving habits more efficient. A potential drawback might be that more roads could be built or expanded and that might reduce interest in alternative transportation means. One question might be to find out more precisely how the additional funds will be spent.

Date of Summary:  1/30/2014

Outcome:

SB 228 died in the Senate Corporations and Transportation Committee.

Updated 7/31/14