Several states charge highway use or weight-distance taxes in addition to heavy vehicle use taxes (HVUT) and fuel taxes under the International Fuel Tax Agreement (IFTA). New Mexico is one of these states. Keep reading to avoid hefty fines, keep your trucks moving, and maintain a competitive edge in the transportation industry.

Who’s included?

In New Mexico, the weight-distance tax (WDT) applies to owners, operators, and registrants of intra- and interstate commercial vehicles with a declared gross vehicle weight more than 26,000 pounds.

What’s required?

If this program applies to your fleet, you must register and apply each year for a New Mexico Weight-Distance Tax Electronic Permit for each of your vehicles. Then you must file a return and pay the tax quarterly. Certain taxpayers may elect to pay the tax on an annual basis.

If a quarterly weight-distance tax report has not been submitted, the system will not allow the e-permit to be processed.

Computing the tax

The tax is based on vehicle weight and miles traveled on New Mexico roads, so you’ll need those records. The tax is computed by multiplying the miles traveled in New Mexico by the applicable tax rate.

The tax rate depends on:

• The weight class of the vehicle, and
• Whether it qualifies for the lower one-way haul rate for certain trucks that travel 45 percent or more miles for the registration year empty of all load.

Quarterly due dates

Weight distance tax is due by:

• April 30 for the quarter January 1 through March 31;
• July 31 for the quarter April 1 through June 30;
• October 31 for the quarter July 1 through September 30, and
• January 31 for the period October 1 through December 31 each year.

Even if your registered trucks have not traveled through New Mexico during a quarter, you must still file a return for that quarter.

Are there other options?

If your trucks operate on New Mexico highways, you do have options. You can:

• Register each vehicle and then report and pay weight-distance tax quarterly, or
• Pay the trip tax each time one of your trucks enters or exits the state.

If you operate in New Mexico, be sure to add the weight-distance tax to your list of quarterly payments.