Chapter 20, Section B:
Boat Excise Tax

Revised August 29, 2008


Boat Excise Tax (66-12-6.1)

An excise tax is imposed upon the sale of every boat required to be registered in the state.

The division shall collect the tax from the applicant at the time application is made for issuance of a certificate of title.

The boat excise tax is five percent (5%) of the sale price of the boat.

  • If the sale price does not represent the value of the boat in the condition that existed at the time it was acquired, the excise tax shall then be imposed at the rate of five percent of the reasonable value of the boat in such condition at such time.
  • However, allowances granted for trade-ins may be deducted from the sale price or the reasonable value of the boat purchased.
  • If a boat was acquired through an out-of-state transaction upon which a gross receipts, sales, compensating or similar tax was levied, the amount of that tax paid (if documented)may be credited against the New Mexico excise tax due on the same boat.

    Enter the amount paid in the "Credit of Taxes" space of the application; compute the amount due under New Mexico law and collect the difference if the tax paid in another state is less than the New Mexico tax.

A penalty of 50 percent of the tax due on the issuance of a certificate of title is imposed, effectively increasing the tax rate to seven and a half percent (7.5%), on any person:

  • who, domiciled in this state and accepting transfer in this state, fails to apply for a certificate within 90 days of the date on which ownership was transferred to him; or
  • who is domiciled in this state but accepts transfer outside this state and who fails to apply for a certificate within 90 days of the date on which the boat is brought into this state.

Boat Excise Tax Exemptions

  • Persons domiciled outside this state and on active duty in the military service of the United States or on active duty as officers of the Public Health Service detailed for duty with any branch of the military service are exempt from the boat excise tax.
  • Persons who acquire a boat out of state 30 or more days before establishing a domicile in this state are exempt from the tax imposed by this section if the boat was acquired for personal use.
  • Persons applying for a certificate of title for a boat registered in another state are exempt from the tax imposed by this section if they have previously registered and titled the boat in New Mexico and have owned the boat continuously since that time.
  • Certificates of title for boats owned by the State of New Mexico or any political subdivision of the state are exempt from the tax imposed by this section.