Motor Vehicle Excise Tax (MVET)
The Motor Vehicle Excise Tax applies to the sale of every motor vehicle that must be registered in the State of New Mexico. We presume that every time a vehicle is titled, a sale has occurred and the motor vehicle excise tax is due.
The tax is 4% of the price paid for the vehicle less any trade-in credit. For non-dealer sales, however, the N.A.D.A. value is used if the declared purchase price of the vehicle is lower than 80% of the N.A.D.A. average trade-in or wholesale value.
If a vehicle is legitimately transferred by gift, there is no sale, and no excise tax is due. Any applicant for a vehicle title who claims that the vehicle was received by gift must submit a notarized Affidavit of Gift of Motor Vehicle or Boat (MVD-10018) in which both donor and recipient affirm under oath and under penalty of perjury that the vehicle was in fact transferred as a gift.
Payment is due at the time the buyer applies for a certificate of title. When you purchase a vehicle through a dealer, the dealer may handle the application for you and collect the tax. Otherwise, you must pay the tax to the New Mexico Motor Vehicle Division (MVD) or one of its agents when you apply for a title.
Tax Penalty for late Titling-
A penalty of 50% of the Motor Vehicle Excise Tax is imposed on any person who lives in New Mexico and either:
a) accepts transfer of a vehicle in New Mexico but fails to apply for a certificate of title within 90 days or
b) accepts transfer outside the state and fails to apply for a certificate of title within 90 days of bringing the vehicle into New Mexico
The 50% add-on penalty has the effect of increasing the tax rate to 6% (4% x 1.5 = 6%).
Twenty-five percent of the tax goes to the Local Governments Road Fund. The remainder goes to the Highway Infrastructure Fund
Note-If a vehicle is acquired out-of-state, and another state’s gross receipts, sales, compensating or similar tax was paid, the amount of the tax paid may be credited against the MVET due on the same vehicle.