INCREASE GAS TAX & CREATE NEW FUNDS
- Legislative URL:
- SB 284 on nmlegis.gov
- Emergency Clause:
-  SCC/SCORC/SFC-SCC germane-SCORC  w/drn-SFC API.
- Bill Sponsor:
- John Arthur Smith
This bill reduces, on a percentage basis, special fuel and gasoline tax distributions to the State Aviation Fund, the Motorboat Fuel Tax Fund, municipalities and counties, the County Government Road Fund and the Local Governments Road Fund; and it increases distributions to the State Road Fund.
It provides additional revenue by increasing the gasoline tax from $.17 to $.27 per gallon, and the special fuel excise tax from $.21 to $.31 per gallon, in increments between July 1, 2019 and July 1, 2024, and by indexing both taxes beginning on July 1, 2025.
The bill creates the State Road Maintenance Fund and the Carlsbad Brine Well Remediation Fund, and it provides for a distribution of gasoline and special fuels taxes to the State Road Maintenance Fund, to municipalities and counties for maintenance and repair of existing transportation infrastructure and to the Carlsbad Brine Well Remediation Fund.
Possible benefits of this bill might include significant improvement of the state’s transportation infrastructure through increased funding for highway projects and for maintenance and improvement of existing roads; as well as funding for the Carlsbad brine well remediation effort . Another might be that increased gasoline taxes may increase demand for more fuel-efficient vehicles. A concern might be the absence of provisions for mass transit or alternative transportation projects.