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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).

Report it on form RPD-41164, Alternative Fuels Excise Tax Return.

Type of Alternate Fuel

Tax Rate

Liquefied Petroleum Gas    (LPG) $0.120 / gal
Compressed Natural Gas     (CNG) $0.133 / gal
Liquefied Natural Gas     (LNG) $0.206 / gal
Water-phased Hydrocarbon Fuel Emulsion     (A-55) $0.120 / gal

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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