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Senate panel considers gas-tax increase to fund road maintenance; debate over CPI indexing and equity

Senate Finance Committee · February 16, 2026
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Summary

Senate Bill 76 would raise New Mexico’s gas tax from 17¢ to 23¢ per gallon (special fuel from 21¢ to 26¢) and permit annual CPI indexing; proponents say recurring revenue is needed for road maintenance, opponents call the change regressive and demand DOT accountability and caps on indexing.

Senate Finance Committee members heard testimony and debate on Senate Bill 76, a proposal to raise the state gas tax from 17¢ to 23¢ per gallon and increase the special fuel tax from 21¢ to 26¢ per gallon, with changes taking effect July 1, 2026 and an option for CPI indexing going forward.

Mike Sandoval, a former cabinet secretary appearing as an expert witness, framed the measure as a source of recurring revenue needed for maintenance rather than one-time construction dollars. "This money…

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