The clock is ticking for vehicle owners in the State of Mexico, as the deadline for paying both vehicular registration and ownership taxes approaches on March 31, 2025. The Secretary of Finance for the State of Mexico has confirmed that there will be no extension beyond this date. As of March 18, approximately 60% of vehicle owners have completed the registration fee payment, which is set at 917 pesos this year, while a remarkable 90% have settled their ownership tax obligations. This surge in payments is seen as a positive sign, especially since many tend to wait until the last moment to fulfill these requirements.
Jaime Valadez Aldana, the Deputy Secretary of Revenue, indicated that with the growing compliance rates, the government expects to exceed the revenue collected from these two taxes by 10% in 2025. Notably, this increase can be attributed to the expanded eligibility for the 100% subsidy on vehicle ownership tax. In 2023, the subsidy was available for vehicles valued up to 400,000 pesos and motorcycles valued up to 115,000 pesos. However, the current threshold has been raised to 550,000 pesos for cars in 2025. This change is projected to benefit nearly two million additional contributors.
The government anticipates collecting around 8 billion pesos from these taxes this year, with approximately 7.24 billion pesos allocated for the vehicle ownership subsidy. This represents the highest amount since the implementation of this tax relief under former governor Eruviel Ávila Villegas.
In the face of increasing online transactions, Valadez assured that the expanded digital platform for tax payments is robust enough to handle the volume, expressing confidence that it would not collapse under pressure. He emphasized, “This year, the digital platform is the most robust in history.”
The upcoming vehicle replacement campaign set to launch on April 1, 2025, aims to encourage compliance further. This program will offer historical benefits, such as the complete waiver of ownership and registration taxes for 2023 and prior years, alongside waivers for the Tax on the Acquisition of Used Motor Vehicles (ISAU). This includes citizens whose plates expired in 2020 and who have outstanding debts. Valadez detailed how these individuals can come to tax offices, receive new plates, and have their previous debts canceled, allowing them to pay only the 2024 registration fee and, upon being current with payments, access the 2025 subsidy.
The 2024 re-registration campaign achieved impressive results, with a coverage of 97% of its target leading to a collection of 1.64 billion pesos. Of the 200,000 vehicles that required new plates, most were motorcycles. To date, about 40,000 motorcycles (20% of the total) are now compliant and have benefited from the 50% discount on ownership tax, a deal valid until March 31.
Valadez also urged vehicle owners to avoid intermediaries, commonly referred to as “coyotes,” in order to prevent unnecessary complications. Thankfully, there are numerous options available for fulfilling these obligations, including online platforms, bank branches, and designated tax collection modules across various municipalities.
Meanwhile, on a related note, March 25, 2025, marks the day when the 'Hoy No Circula' program is enforced in both Mexico City and the State of Mexico, impacting vehicle movement from 5 AM to 10 PM. Specific restrictions apply, prohibiting vehicles with pink stickers and license plate endings in 7 and 8, as well as those with verification holograms 1 and 2. The decision against activating the 'Doble Hoy No Circula' was made due to favorable air quality conditions.
Failure to comply with the 'Hoy No Circula' restrictions can lead to fines ranging from 20 to 30 Units of Measurement and Update (UMA), which translates to approximately 2,074.8 to 3,112.2 pesos. As a result, it's crucial for vehicle owners in the metropolitan area to stay informed about these regulations and plan their travel meticulously.
In summary, the month of March is critical for Mexican vehicle owners as they navigate the intricacies of tax payments, registration, and environmental regulations. The local government is not only taking measures to ensure compliance but providing opportunities for rebates and conveniency in a bid to encourage higher involvement and adherence to the law.
