Sylvie Willis
Motor fuel taxes are levied on gasoline, diesel, and gasohol (a blend of ethanol and unleaded gasoline). In the United States, motor fuel taxes are imposed by both federal and state governments. While the federal government imposes a flat tax of 18.4 cents per gallon on motor fuels, state tax rates vary. New Mexico is one of six states with a per-gallon gas tax rate of less than 20 cents, but the tax rate for unleaded fuel specifically is unclear. New Mexico's gasoline tax rate is $0.17 per gallon, but it is unclear if this rate applies to unleaded gasoline. Additionally, New Mexico has a special fuels supplier tax on diesel fuel, but it is unclear if this affects the price of unleaded fuel.
Explore related products
What You'll Learn
New Mexico's gasoline tax rate is $0.17 per gallon
New Mexico's gasoline tax is relatively low compared to other states. For example, California has a gas tax rate of 62.9 cents per gallon, while Pennsylvania's is 57.6 cents and Washington's is 49.4 cents. Only five other states have per-gallon gas tax rates below 20 cents: Arizona, Hawaii, Mississippi, Oklahoma, and New Mexico.
Most states levy per-unit taxes on gasoline, meaning consumers pay tax based on the number of gallons they purchase rather than a percentage of the final purchase price. In addition to state taxes, there is also a federal tax on motor fuels of 18.4 cents per gallon.
In New Mexico, diesel fuel is considered a "special fuel" and is taxed separately from gasoline. The special fuels supplier tax is an excise tax on suppliers for the privilege of receiving special fuel in the state. This tax is owed by either the rack operator or the registered New Mexico supplier buying the special fuel.
New Mexico also participates in the IFTA, a multi-jurisdictional fuel tax agreement between the US states and Canadian provinces. The IFTA simplifies fuel tax reporting for trucking and other companies with vehicles weighing over 26,000 pounds. Through the IFTA, these companies file a single quarterly tax return with a single payment that covers their fuel consumption in all member jurisdictions.
Private Jet Fuel Costs: How Much Does It Burn?
You may want to see also
Explore related products
Diesel is considered a special fuel in New Mexico
In New Mexico, diesel is the only type of fuel considered a "special fuel" to be reported on IFTA returns. IFTA, or the International Fuel Tax Agreement, is a multi-jurisdictional fuel tax agreement between the US states and Canadian provinces. It simplifies the reporting of fuel taxes by trucking companies and other vehicles weighing over 26,000 pounds.
Through IFTA, each commercial motor carrier has one fuel use license and one administering base jurisdiction. Companies register with the jurisdiction in which they are based and receive credentials that allow them to travel through other IFTA member jurisdictions. These companies file a single quarterly tax return with a single payment to their base jurisdiction, which covers all their travel in all IFTA member states.
In New Mexico, the special fuels supplier tax is an excise tax on suppliers for the privilege of receiving special fuel in the state. Special fuel is defined as any diesel-engine fuel or kerosene used to generate power to propel a motor vehicle. The tax applies to the gallons of special fuel received in New Mexico and is owed either by the rack operator, if sold to a non-registered customer, or by the registered New Mexico supplier buying the special fuel. The rate is $0.21 per gallon, plus an additional petroleum products loading fee. This tax is due monthly by the 25th day of the month following the receipt of the special fuel.
The state has also implemented the New Mexico Clean Diesel Program, which is funded by the EPA through the Diesel Emissions Reduction Act (DERA). The program provides grant funding for projects that reduce harmful heavy-duty diesel emissions. Since 2008, the Air Quality Bureau has awarded over $2.3 million in grant funds for qualifying diesel emissions reduction projects. For example, the program has funded the replacement of diesel-fuelled semi-truck tractors with electric ones for Goodwill Industries of New Mexico.
The World's Remaining Aviation Fuel: How Long Will It Last?
You may want to see also
Explore related products
New Mexico has the 5th lowest per-gallon gas tax rate in the US
New Mexico has one of the lowest per-gallon gas tax rates in the US. At $0.17 per gallon, it is one of six states with a rate below $0.20. The others are Arizona, Hawaii, Mississippi, Oklahoma, and Alaska, which has the lowest rate in the US at $0.0895 per gallon. California has the highest rate at $0.629 per gallon.
The gasoline tax in New Mexico is an excise tax imposed on distributors of gasoline in the state. It is reported monthly by the 25th day of the month following the month in which the gasoline is received. In addition to the state tax, there is also a federal tax of $0.184 per gallon on motor fuels.
In most states, the gas tax is a per-unit tax, meaning consumers pay tax based on the number of gallons they purchase rather than a percentage of the final purchase price. However, 22 states and the District of Columbia tie their motor fuel tax rate to variables such as the price of gasoline, inflation, or state population growth.
In recent years, many states have made changes to their gas tax rates, often in response to declining tax revenue due to flat or declining consumption. Between 2013 and 2021, 33 states and the District of Columbia enacted legislation to increase their gas tax rates. In 2017, for example, Indiana raised its per-gallon rate from $0.18 to $0.28.
In New Mexico, diesel is considered a "special fuel" and is taxed differently from gasoline. The tax is paid by either the rack operator or the registered New Mexico supplier buying the special fuel.
Fuel Efficiency of the Mig 29 Fighter Jet
You may want to see also
Explore related products
New Mexico's gasoline tax is an excise tax imposed on distributors
New Mexico's gasoline tax is what is known as an excise tax. An excise tax is a tax imposed on a specific good or service, in this case, gasoline. Excise taxes are typically imposed on goods or services that are considered harmful or undesirable, such as tobacco or alcohol. In the case of gasoline, the excise tax can also be seen as a way to generate revenue for transportation-related programs and infrastructure improvements.
The gasoline tax in New Mexico is imposed on distributors, who are then likely to pass the cost on to consumers in the form of higher gasoline prices. This is a common feature of excise taxes, as the tax is typically added to the price of the good or service at the point of purchase. However, it's worth noting that the tax is imposed on the distributor, not the consumer, so the consumer is not directly taxed by the government.
New Mexico's gasoline tax is also what is known as a per-unit tax, which means that the tax is based on the number of gallons of gasoline purchased, rather than a percentage of the final purchase price. This is a common approach to taxing motor fuels, as it provides a stable source of revenue for the state, regardless of fluctuations in the price of gasoline. It also simplifies the tax collection process, as the tax can be easily calculated based on the number of gallons sold.
In addition to the gasoline tax, New Mexico also has a special fuels supplier tax, which is an excise tax on suppliers of special fuels, such as diesel-engine fuel and kerosene used for motor vehicles. This tax is reported on IFTA returns, which is a multi-jurisdictional fuel tax agreement between the US states and Canadian provinces. The IFTA simplifies the reporting of fuel taxes for trucking and other companies with vehicles weighing over 26,000 pounds, by providing a uniform system for administering and collecting fuel consumption taxes.
Racing Fuel Costs: How Expensive Is It Really?
You may want to see also
Explore related products
IFTA simplifies the reporting of fuel taxes by trucking companies
In New Mexico, the gasoline tax rate is $0.17 per gallon. This is an excise tax imposed on distributors of gasoline and must be reported monthly by the 25th day of the month following the gasoline receipt.
The International Fuel Tax Agreement (IFTA) is a pact between the lower 48 states and 10 Canadian provinces that simplifies the reporting of fuel taxes by trucking companies. It was created to replace the old fuel tax system, which required trucks to have a separate decal for every state they operated in. IFTA streamlines the process by requiring just a single permit that is honoured across all member states and provinces. This reduces paperwork and minimises compliance requirements for trucking companies.
Prior to IFTA, truckers had to deal with multiple jurisdictions and contradictory regulations when paying fuel taxes. They had to purchase a fuel tax license for each state they travelled through, which could quickly become costly. With IFTA, truckers obtain a fuel tax permit from a single state, and the tax on fuel purchased in any other participating state or province is credited to their account.
IFTA also simplifies the reporting process. Truckers are required to submit a quarterly report listing the miles driven and gallons of fuel purchased in each region. This report determines the amount of tax still owed or the refund due, with tax liabilities calculated for each jurisdiction. The use of fleet telematics solutions can further simplify IFTA reporting by automatically tracking and reporting vehicle information, location, date, time, and fuel consumption.
Overall, IFTA streamlines the process of paying and reporting fuel taxes for trucking companies, saving time and money, and reducing the stress associated with multiple permits and contradictory regulations.
Freightliner Cascadia Fuel Capacity: How Much Can It Hold?
You may want to see also
Frequently asked questions
The gasoline tax rate in New Mexico is $0.17 per gallon.
Fuel distributors must report gasoline tax monthly by the 25th day of the month following the month in which the gasoline is received.
IFTA is a multi-jurisdictional fuel tax agreement between the US states and Canadian provinces. It simplifies fuel tax reporting for trucking companies and other companies with vehicles weighing over 26,000 pounds.
In New Mexico, diesel is the only type of fuel considered a "special fuel" and must be reported on IFTA returns.
The federal tax rate on motor fuels is 18.4 cents per gallon.
