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Committee hears proposal to redirect motor vehicle excise tax to State Road Fund; bill held for consideration
Summary
A bill to shift motor vehicle excise tax distributions back from the general fund to the State Road Fund drew broad public support and was held for consideration; supporters argued the funds belong to roads after earlier transfers to the general fund during previous fiscal shortfalls.
The committee heard testimony on legislation that would eliminate the current distribution of a portion of motor vehicle excise tax to the general fund and increase the allocation to the State Road Fund.
Sponsor testimony framed the change as restoring a prior distribution that historically supported roads; the sponsor described the measure as returning recurring revenue to road maintenance and construction. Representatives from the Department of Transportation and multiple industry groups — including Associated Contractors of New Mexico and the Asphalt Pavement Association of New Mexico — testified in favor of the bill, saying the state faces a large backlog and needs recurring revenue to maintain and expand roads and bridges. The Department of Transportation noted the proposed additional revenue would help support debt service for a separate bonding proposal (House Bill 145) but said it would evaluate the fiscal impacts of a full transfer from the general fund.
Thirteen members of the public in the room indicated support; no opposition speakers were recorded in the room. Testimony emphasized economic development, safety and the need for a more stable revenue stream for transportation work.
Committee leaders said they would hold the bill for further consideration within the legislative process; no committee vote to advance the bill was recorded during the hearing.
