A bill adding a 30-cent-per-gallon gasoline tax in New Mexico failed in the New Mexico House Appropriations and Finance Committee, in a 14-1 vote Feb. 10.
House Bill 173 was introduced by state Rep. Matthew McQueen (D-Santa Fe) with a stated purpose of increasing New Mexico’s fuel tax and dedicating the proceeds to several funds: the state road fund, a new Clean Infrastructure Fund, and a Gasoline and Special Fuel Excise Surtax Low-Income Rebate Fund. It was thought of as a way to help pay for needed improvements to New Mexico’s roads and infrastructure.
The voices of hundreds of New Mexico residents, and the efforts of the New Mexico Business Coalition helped to defeat the bill.
Carla Sonntag, President and Founder of the New Mexico Business Coalition
“New Mexico desperately needs work done on its roads - and especially in the southeast part of the state which has seen an energy-related growth explosion - and we haven't had a gas tax increase in several years," Carla Sonntag, President and Founder of the New Mexico Business Coalition, told Enchantment State News. "Unfortunately, HB 173 was a horrible solution.”
Over the years, the tax would have started at 17 cents per gallon and increased incrementally to 47 cents a gallon, with a third of the revenue going to each of the three funds.
The new gasoline and special fuel excise surtax low-income rebate would allow New Mexico residents who are not dependents of others and who file an individual tax return to claim a rebate of a portion of gasoline and special fuel excise surtaxes passed on to the resident, even if they don’t have taxable income for the year, starting after Jan. 1, 2021.
"The cost to New Mexico residents was inappropriate and would cost some businesses millions of dollars," Sonntag said. "In addition, it was projected to cause a recurring $10 million dollar loss (or increased cost) to the General Fund annually by FY24. (It would be $3.8 million in FY 22 and $7.3 million in FY23).”
Sonntag said that NMBC was the only business group that opposed the gas tax, and said that the organization was gathering signatures around the state in an online petition.
“We were building momentum on signatures and got the issue tabled, so we pulled the petition," Sonntag said. "The trucking industry was the only other group that I recall opposing from the beginning until it was stopped.”
New Mexico Business Coalition started operations in 2009 to represent business owners. According to the group, they do not accept government funds or compromise on bad policy or legislation just to get along or be "liked" by government officials.
“We are a strong advocate for business and often work on issues that no other business groups will touch,” Sonntag said.
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