In an effort to begin fixing and maintaining New Mexico roads, starting on July 1st, the state increased both vehicle registration fees and weight-distance taxes.
MVD customers can expect passenger vehicle registration fees to increase by 25% and weight-distance taxes to increase by 35%. Current passenger vehicle registration fees (not including off-highway vehicles, trucks, RVs, motorcycles, or buses) will increase from $21-$56 per year to about $26-$70 per year.
With the increase in fees, an estimated $70 million will go to the State Road Fund. Unlike most state agencies, the New Mexico Department of Transportation’s funding relies on the State Road Fund rather than recurring general fund appropriations.
New Mexico has not increased these rates since 2004, and currently ranks among the lowest vehicle registration fees in the country. However, more than half of New Mexico’s roads need maintenance and are currently costing drivers more than $1000 a year in repairs and wasted fuel.
Acting NMDOT Cabinet Secretary David D. Quintana, P.E. said “After decades of underfunding, we’re finally making the kind of sustained investment our communities deserve.”
With the new money to go towards fixing and maintaining roads around the state, this increase will be “something all New Mexicans will benefit from,” said Taxation and Revenue Secretary Stephanie Schardin Clarke.
MVD customers can still get 5% off their vehicle registration fees by renewing online.
Olivia Woodard is a journalist for Brant One News. She can be reached at [email protected] or on Instagram at @brantonenews
