Taos is easy to drive around in, seeing as there is really only one main road stretching from the beginning of town to the end. the downtown area is great for walking, with many restaurants, shops, and galleries to visit. Taos Trolley Tours runs bus tours that reach most of the main attractions. The trolley-style bus won't move any more quickly through traffic than your car will, but using it will at least save you some aggravation behind the wheel, and reduce the congestion slightly for the other drivers. Call +1 575 751-0366 for details; usually closed during the winter.
Taos does have one form of public transportation, and that's the Chile Line shuttle service, +1 575 751-4459, (http://www.taosgov.com/tr...). There's a fixed-route service with designated stops along the main street of town Paseo del Pueblo and a shuttle service from many of the hotels in Taos to the Taos Ski Valley.