Governor Signs Bill on Vehicle Registration Hike

New Mexico motorists and truckers will pay higher fees and taxes on their vehicles under a law signed Thursday by Gov. Michelle Lujan Grisham.

Lujan Grisham signed the legislation, Senate Bill 2, at the state Capitol in Santa Fe along with two bills designed to lure more physicians and social workers to New Mexico and another to prohibit local governments in the state from entering into agreements with the federal government to detain individuals accused of violating immigration laws.

The four bills were among the governor’s top priorities for the 30-day legislative session that began Jan. 20.

“Halfway through the session, we’re showing what’s possible when we focus on getting things done for New Mexicans,” she said in a news release issued after the signing ceremony/ news conference at the Roundhouse.

Vehicle Registration Fees

In addition to raising vehicle registration fees by 25% and the weight distribution tax on commercial vehicles by 35%, SB 2 increases the amount of money the state can borrow for state road and bridge projects by $1.5 billion. The bill passed the House of Representatives by a vote of 44-23. The Senate vote for passage was 31-9.

According to the New Mexico Motor Vehicle Department, registration fees vary depending on a vehicle’s age and weight. For a passenger vehicle, the fee for a one-year registration currently ranges from $27 to $65 and a two-year registration costs between $54 and $124. Registration fees for trucks range from $38 to $207 for a one-year registration and from $76.00 to $414 for a two-year registration.

The increases in registration fees and the weight distribution tax, which is based on a vehicle’s weight and miles driven on Mexico roads, are scheduled to take effect July 1.

The bill also imposes a new surcharge on electric vehicles and hybrid plugins. Fees for electric vehicles will start at $70 in 2027 and rise to $90 in 2029. Owners of hybrid plug-ins will pay $35 in 2027 with that fee increasing to $45 in 2029. Those new taxes become effective Jan. 1, 2027.

An analysis of SB 2 by the New Mexico Taxation and Revenue Department found that in fiscal year 2027, which begins July 1, the new fees will bring the state an additional $69.9 million for road and highway maintenance and construction.

New Mexico Transportation Secretary Ricky Serna told legislators in November that the higher fees were necessary due to rising construction costs and an expected decrease in revenue coming into the road fund over the next 25 years.

Lujan Grisham said the legislation will help address the state’s deteriorating roads. A report released in January by the National Transportation Research Group, known as TRIP, found that New Mexico has $7.5 billion in projects that need funding.

Medical Compacts The two bills aimed at the shortage of medical practitioners in the state, Senate Bill 1 and House Bill 50, both passed the House and Senate without opposition.

SB 1 enables New Mexico to join the Interstate Medical Licensure Compact, which provides 43 other states, the District of Columbia and the territory of Guam with a common path to licensing qualified physicians across state lines.

An analysis of SB 1 by the New Mexico Medical Board projects that the state will experience a 10% to 15% increase in physician license applications after joining the compact.

HB 50 enables New Mexico to join the Social Work Licensure Interstate Compact, which allows social workers to practice in multiple states.

Although 31 states participate in the compact, an analysis of HB 50 by the New Mexico Regulation and Licensing Department found that no multi-state licenses are currently being issued. However, the analysis found those licenses could start being issued as soon as this year if the compact’s “administrative infrastructure” is in place.

Lawmakers and the governor have rallied around the compacts as a way to deal with the state’s shortage of health care workers.

Immigrant Detention The bill dealing with immigration detention centers — HB 9, also known as the Immigrant Safety Act – passed the House and Senate on mostly party-line votes. It advanced out of the House 40-29, with Democratic Reps. Martha Garcia of Albuquerque, D. Wonda Johnson of Rehoboth and Patricia Lundstrom of Gallup voting against it. In the Senate, George Muñoz of Gallup was the only Democrat who opposed the measure.

The bill prohibits local governments from contracting with federal authorities to detain individuals on civil immigration violations. It also bans law enforcement in New Mexico from performing certain immigration enforcement functions.

In New Mexico, facilities in three counties are party to such detention agreements: the Otero County Processing Center in Chaparral; the Cibola County Detention Center in Milan; and the Torrance County Detention Facility in Estancia.

Under the agreements, the counties receive federal payments for housing detainees and use the money to contract with private companies to operate the facilities.

Last year, the New Mexico Advisory Committee to the U.S. Commission on Civil Rights voted 7-2 to endorse a report recommending an end to county-level agreements with federal agencies for immigrant detention, citing concerns about conditions at the facilities.

Officials from those areas opposed HB 9 out of concern it could lead the companies that manage the facilities to leave those communities, costing them jobs and local tax revenue.

RB Nichols, attorney for Otero County Processing Center, told the Legislature’s Courts, Corrections and Justice Committee the center is responsible for 284 jobs.

Legislative reporter Alex Ross can be followed on X @alexrosstweets.