Fuels Tax

The New Mexico Commercial Vehicle Bureau is responsible for the licensing and registration of motor carriers in the International Fuel Tax Agreement (IFTA).

IFTA is a multi-jurisdictional fuel tax agreement between the US states and Canadian provinces, IFTA simplifies the reporting of fuel taxes by trucking and other companies with vehicles weighing in excess of 26,000 pounds.  IFTA provides one uniform system for administering and collecting fuel consumption taxes from companies operating in multiple member jurisdictions without companies having to register, report, and make payments to each separate jurisdiction.

Through IFTA, each commercial motor carrier has one fuel use license and one administering base jurisdiction. Using IFTA, companies register with the jurisdiction in which they are based, and receive credentials that allow them to travel through other IFTA member jurisdictions. These companies file a single quarterly tax return with a single payment to their base jurisdiction that covers all their travel in all IFTA member jurisdictions. The IFTA tax return is designed to reallocate fuel tax paid on special fuels, purchased at retail locations or in bulk, based on the number of miles traveled in each jurisdiction. The IFTA tax return calculates tax due and/or tax credits due to each jurisdiction to arrive at a total tax due or credit due to the trucker or company.

Each jurisdiction determines which types of fuel are considered special fuels, and sets the tax rate for each type of special fuel. In New Mexico, diesel is the only type of fuel considered as a special fuel to be reported on IFTA returns. However in Texas, gasoline and diesel are special fuels and both types are reported on IFTA returns. Furthermore, some jurisdictions have many types of special fuels reported on IFTA returns including propane, natural gas, gasohol, etc.

A qualified commercial vehicle is a motor vehicle used, designed or maintained for transportation of persons or property that:

  • has two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds; or
  • has  three or more axles regardless of weight; or
  • is used in combination, when such combination exceeds 26,000 pounds.

For licensing and registration, contact MVD staff at:

Motor Vehicle Division/ Commercial Vehicle Bureau
2544 Camino Edward Ortiz, Suite C
Santa, Fe, New Mexico 87507

Telephone: 505-827-0392
Fax: 505-476-1571