ALEXANDRIA, VA - TRALA and the New Mexico Trucking Association have successfully defeated legislation in New Mexico that would have resulted in a 33-percent increase in the State's vehicle excise tax. Currently, the vehicle excise tax is 3 percent of the price paid for a vehicle.

Two separate but identical bills that were considered in the regular session of the New Mexico legislature, House Bill 271 and Senate Bill 240, would have raised the vehicle excise tax from three to four percent. The New Mexico legislature convened a special session last week in order to finalize the State's budget, but the vehicle excise tax increase was kept off the table and was not part of the final budget.

TRALA contacted the sponsors of both the House and Senate bills to discuss the negative impacts this tax increase would have had on the truck renting and leasing industry and its customers in New Mexico. TRALA explained to the sponsors that in addition to the overall bad economic climate, model year 2010 trucks cost more than earlier models due to costs associated with clean diesel technologies driven by U.S. Environmental Protection Agency (EPA) mandates. Increased taxes on top of more expensive purchase prices would be a disincentive to purchase or lease new vehicles.

TRALA also explained that the utilization of new clean diesel technologies will result in a 90-percent reduction in NOx and particulate matter emissions over previous model years. Additionally, ultra-low sulfur diesel being used in 2010 engines uses 96-percent less sulfur than regular diesel. Increased taxes on the purchase and lease price of these trucks would have surely slowed the introduction of these new clean diesel technologies and their environmental benefits in New Mexico.

To see copy of the Senate version of the legislation, please click here. A copy of TRALA's letter to the sponsor can be seen here. For more information, please contact TRALA's Tom James at tjames@trala.org or Joe Sculley at jsculley@trala.org or call (703) 299-9120.