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Category: Editorials Editorials
Published: 04 February 2020 04 February 2020

By Etta Pettijohn

A bill that would almost triple New Mexico’s gas tax rate over the next five years has made it to the House Appropriations and Finance Committee.

House Bill 173, sponsored by Rep. Matthew McQueen (D-50) is estimated to generate more than $300 million by the 2024 budget year. The measure creates a new gasoline and special fuel surtax of 10 cents per gallon starting in 2021, and increasing by 5 cents per gallon until 2026. The surtaxes are in addition to the existing gasoline and special fuel taxes.

Revenues from the surtax will create revenue for the state road fund, a new clean infrastructure fund, and a new gasoline and special fuel excise surtax low-income rebate fund.

McQueen and other supporters say New Mexico, which has a current gas tax rate of 17 cents, hasn’t increased rates since 1993, and is one of the lowest in the region.

But according to a legislative analysis, the proposed 30-cent surtax, which will be implemented over a five-year period, is one of the nation’s highest.

Titled “The Next Generation Transportation Act,” it passed the House Taxation and Revenue Committee on a party-line 8-4 vote.