New Mexico
Alternative Fuels Tax
The excise tax imposed on an alternative fuel distributed in New Mexico is $0.12 per gallon. Alternative fuels subject to the excise tax include liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG). Alternative fuel purchased for distribution is not subject to the alternative fuel excise tax at the time of purchase or acquisition, but the tax is due on any alternative fuel at the time it is dispensed or delivered into the tank of a motor vehicle. Owners of alternative fuel vehicles with a Gross Vehicle Weight Rating (GVWR) not exceeding 54,000 pounds (lbs.) may pay an annual tax in lieu of the per gallon tax, according to the following schedule:
| GVWR | Annual Tax |
|---|---|
| 0 to 6,000 lbs. | $60 |
| 6,001 to 16,000 lbs. | $100 |
| 16,001 to 26,000 lbs. | $300 |
| 26,001 to 40,000 lbs. | $700 |
| 40,001 to 54,000 lbs. | $1,100 |
Alternative fuel distributed by or used for U.S. government, state government, or an Indian nation, tribe or pueblo purposes, is exempt from the excise tax. Alternative fuel distributors must be licensed by the state. (Reference New Mexico Statutes 7-16B)
Alternative Fuel Vehicle (AFV) Acquisition Requirements – Albuquerque
All motor vehicles purchased by the City of Albuquerque must be dedicated, flexible-fuel, or dual-fuel AFVs. Alternative fuels are defined as fuels other than gasoline and 100% petroleum diesel and may include ethanol, biodiesel, natural gas, electricity, propane, or other alternative fuels approved by the city's Chief Administrative Officer. (Reference City of Albuquerque Executive Order 19, 2006)
