Summary:

 Senate Bill 27 (SB 27) modifies Section 7-14-10 NMSA 1978 to eliminate the distribution of Motor Vehicle Excise Tax revenue to the General Fund and increase the allocation to the State Road Fund. The bill also maintains the existing allocation to the Transportation Project Fund. SB 27 takes effect on July 1, 2026. 

Legislation Overview:

 Senate Bill 27 (SB 27) revises the allocation of Motor Vehicle Excise Tax revenue to prioritize funding for transportation infrastructure. Key provisions include:

Changes to Revenue Distribution
•	Eliminates the existing distribution of 59.39% of Motor Vehicle Excise Tax revenue to the General Fund.
•	Increases the distribution to the State Road Fund from 21.86% to 81.25%.
•	Retains the distribution of 18.75% to the Transportation Project Fund.

Fund Uses
•	State Road Fund: Supports road construction, maintenance, and improvement projects across New Mexico.
•	Transportation Project Fund: Funds transportation projects with a focus on local and regional infrastructure needs.

Fiscal Implications 
Redirecting revenue from the General Fund to the State Road Fund will significantly impact the allocation of state financial resources. The increased funding for the State Road Fund is expected to address critical transportation infrastructure needs, while the General Fund will lose a substantial revenue source. Administrative costs for implementing the revised distribution are expected to be minimal.
 

Current Law:

 Under current law, Motor Vehicle Excise Tax revenue is distributed as follows:

•	59.39% to the General Fund.
•	21.86% to the State Road Fund.
•	18.75% to the Transportation Project Fund. 

SB 27 eliminates the General Fund allocation and redistributes the funds to prioritize road and transportation projects.