Summary:

 Senate Bill 28 (SB 28) redirects all revenue from the corporate income tax to the State Road Fund. This redistribution aims to provide a dedicated funding source for road infrastructure projects across New Mexico. SB 28 takes effect on July 1, 2026. 

Legislation Overview:

 Senate Bill 28 (SB 28) proposes a new section to the Tax Administration Act to alter the distribution of Corporate Income Tax revenue. Key provisions include:

Revenue Redistribution
•	All net receipts attributable to the Corporate Income Tax will be distributed to the State Road Fund.
•	This replaces the current practice of allocating Corporate Income Tax revenue to the state’s General Fund.

State Road Fund Use
•	Funds allocated to the State Road Fund are intended for road infrastructure projects, including construction, maintenance, and improvement of state roads.
•	The reallocation ensures a stable funding source for critical transportation infrastructure needs.

Effective Date
•	SB 28 takes effect on July 1, 2026.

Fiscal Implications 
Redirecting Corporate Income Tax revenue to the State Road Fund will decrease revenue to the General Fund, potentially impacting other state-funded programs and services. However, the dedicated funding for road infrastructure projects could reduce long-term maintenance costs and support economic development by improving transportation networks.
 

Current Law:

 Under current law, Corporate Income Tax revenue is allocated to the state’s General Fund, supporting a broad range of government functions. The State Road Fund receives funding from other sources, including gasoline taxes and federal appropriations, but does not currently benefit from Corporate Income Tax revenue.