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Alternative Fuel Tax

New Mexico imposes an alternative fuel tax on distributors of alternative fuel. Alternative fuel is defined as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG) or a water-phased hydrocarbon fuel emulsion (for example, A55) for use as fuel for motor vehicles (Sections 7-16B-1 through 7-16B-10 NMSA 1978). 

The tax is $.12 per gallon of alternative fuel distributed in New Mexico. Report it on form RPD-41164, Alternative Fuels Excise Tax Return.  

An alternative fuel user who registers, owns or operates a motor vehicle with a gross vehicle weight of 54,000 pounds or less and that is propelled by alternative fuel may pay the alternative fuel tax on an annual basis according to gross vehicle weight.

 Gross Vehicle Weight Annual Tax  
 0 to 6,000 pounds  $60
 6,001 to 16,000 pounds  $100
 16,0001 to 26,000 pounds  $300
 26,001 to 40,000 pounds  $60
 40,000 to 54,000 pounds  $1,100


Alternative fuel distributors must file and pay the tax by the 25th day of the month following the month the fuel is distributed. Alternative fuel users who elect to pay the annual tax pay the tax at the same time as the vehicle registration.

All receipts go to the state road fund (7-1-6.10).


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