Chapter 5, Section D:|
Motor Vehicle Excise Tax - Basics
Because the Motor Vehicle Excise Tax Act (Chapter 7, Article 14 NMSA 1978) is not included in your Traffic Laws Manual, it is included her in its entirety in Section E of this chapter.
Here are the basics:
When is the Motor Vehicle Excise Tax imposed and paid?
(Sec. 7-14-3) The Motor Vehicle Excise Tax (MVET) is imposed, with specific exceptions, "upon the sale in this state of every vehicle ... required under the Motor Vehicle Code ... to be registered in this state."
Note: Because all-terrain vehicles (ATVs) are subject to the registration and titling provisions of the Motor Vehicle Code, the MVET is imposed on the sale of ATVs (126.96.36.199 NMAC). Boats, because they are not vehicles, are not subject to the MVET, but are subject to a separate 5% boat excise tax (Sec. 66-12-6.1).
(Sec. 7-14-5) The tax is paid at the time of application for a certificate of title.
Amount of tax
(Sec. 7-14-4) The MVET rate three percent (3%) and is applied to the price paid for the vehicle. The value of any vehicle traded in on the purchase of another vehicle may be deducted (188.8.131.52 NMAC).
(Sec. 7-14-7) If a vehicle is acquired out-of-state, and another state's gross receipts, sales, compensating or similar tax was paid, the amount of the tax paid may be credited against the MVET due on the same vehicle.
Rebates and discounts
Rebates are not considered a reduction of the price because a rebate is not granted until after sale has taken place, not before. Rebates shall be included in sales price when computing excise tax.
Discounts should be deducted from the sales price when computing excise tax. A discount is granted before the sale of a vehicle is finalized.
Tax penalty for late titling
(Sec. 7-14-8) A penalty of 50% of the MVET is imposed on any person who lives in New Mexico and either a) accepts transfer of a vehicle in New Mexico but fails to apply for a certificate of title within 90 days; or b) accepts transfer outside the state and fails to apply for a certificate of title within 90 days of bringing the vehicle into New Mexico.
The 50% add-on penalty has the effect of increasing the tax rate to 4.5% (3% x 1.5 = 4.5%).
Statutory exemptions from the MVET
(Sec. 7-14-6) The following are exempt from payment of the Motor Vehicle Excise Tax:
Note: Exemptions D and E, above, reflect a change in statute, effective July 1, 2007. A vehicle that qualifies for a handicap (HP) plate no longer automatically qualifies for the exemption. However, the automatic exemption for vehicles owned by veteran amputees is retained.
Exemptions by Rule - U.S. and NATO
(184.108.40.206 NMAC) Because issuance of a certificate of title is not required for vehicles sold to the United States, the motor vehicle excise tax does not apply to such vehicles.
(220.127.116.11 NMAC) Because issuance of a certificate of title is not required with respect to vehicles sold or transferred to a NATO force, the motor vehicle excise tax does not apply to such vehicles. A “NATO force” is any NATO signatory's military unit or force or civilian component thereof present in New Mexico in accordance with the North Atlantic Treaty.
(18.104.22.168 NMAC) Also exempt, by
operation of the provisions of the North Atlantic Treaty, is the sale or
transfer of a vehicle to a member of a NATO force, including the the
military and civilian personnel of the NATO force and their dependents.