MOTOR VEHICLE EXCISE TAX DISTRIBUTIONS

SB 289 would change how New Mexico allocates revenue from its motor vehicle excise tax (a tax paid by vehicle owners). Currently, about 59% of the tax goes to the general fund, but this bill would reduce that share to 10%. It would increase the state road fund's allocation from roughly 22% to 65% and the transportation project fund's share from about 19% to 25%. These changes would redirect more tax revenue toward transportation infrastructure projects and take effect on July 1, 2026.