Chapter 7 — Chapter 7

The severance tax permanent fund may be invested in revenue bonds issued by the employers mutual company under the authority of the Employers Mutual Company Act [52-9-1 to 52-9-24 NMSA 1978], provided that the amount invested shall not exceed ten million dollars ($10,000,000) and…

It is the purpose of this act to encourage economic development in New Mexico by linking deposit of the severance tax permanent fund in New Mexico financial institutions to an increase in loans to New Mexico businesses and investment in New Mexico government entities and to encou…

A. No more than twenty percent of the book value of the severance tax permanent fund may be invested in deposits in New Mexico financial institutions under terms and conditions set by the council in accordance with the provisions of this section. B. To be eligible for deposits un…

History: Laws 1983, ch. 306, § 9; 1991, ch. 83, § 2; repealed by Laws 1993, ch. 267, § 5.

The severance tax permanent fund may be invested in deposits in New Mexico credit unions, provided each deposit is insured by an agency of the United States and the credit union offers interest on such deposits at least equal to that offered to its members for similar deposits. S…

The severance tax permanent fund may be invested in revenue bonds issued by the New Mexico lottery authority pursuant to the provisions of the New Mexico Lottery Act [Chapter 6, Article 24 NMSA 1978]. The amount invested shall not exceed three million dollars ($3,000,000). Histor…

issued under Section 33-1-19 NMSA 1978 for corrections facilities. Subject to the approval of the state investment council, the severance tax permanent fund may be invested in bonds, certificates of participation or other obligations issued pursuant to Section 33-1-19 NMSA 1978 f…

History: Laws 1997, ch. 45, § 3; 2001, ch. 252, § 11; repealed Laws 2005, ch. 240, § 7.

issued for state capitol buildings and renovations. Subject to the approval of the state investment council, the severance tax permanent fund may be invested in revenue bonds issued by the New Mexico finance authority for state capitol buildings and relocation-associated renovati…

History: Laws 2000, ch. 5, § 4; repealed by Laws 2005, ch. 240, § 7.

A. No more than six percent of the market value of the severance tax permanent fund may be invested in New Mexico film private equity funds or a New Mexico film project under this section. B. If an investment is made under this section, not more than fifteen million dollars ($15,…

A. Within thirty days of the effective date of this 2020 act, the state investment officer shall make a commitment to the authority to invest one percent of the average of the year-end market values of the severance tax permanent fund for the immediately preceding five calendar y…

A. The severance tax permanent fund may be invested in conventional mortgage pass-through securities secured by real estate situated in New Mexico. In the initial twelve-month period, the aggregate face amount of such securities shall not exceed one hundred million dollars ($100,…

No more than twenty percent of the book value of the severance tax permanent fund may be invested in the following investments and in the following amounts: A. no more than ten percent of the book value of the severance tax permanent fund may be invested in notes or obligations s…

The severance tax permanent fund may be invested in educational loan notes issued pursuant to the Educational Assistance Act [Chapter 21, Article 21A NMSA 1978]; provided that in no event shall the principal amount of such notes purchased in any twelve-month period exceed ten mil…

History: Laws 1987, ch. 219, § 2; 1990, ch. 126, § 3; 1997, ch. 45, § 2; 2001, ch. 252, § 8; repealed by Laws 2005, ch. 240, § 7.

ANNOTATIONS Repeals. — Laws 1988, ch. 134, § 7F, repealed 7-27-5.7 NMSA 1978, as enacted by Laws 1988, ch. 134, § 7, relating to oil and gas production investments, effective July 1, 1991. For provisions of former section, see the 1990 NMSA 1978 on NMOneSource.com.

ANNOTATIONS Repeals. — Laws 1999, ch. 57, § 1 repealed 7-27-5.8 NMSA 1978, as enacted by Laws 1988, ch. 134, § 1, relating to finding and purpose, effective June 18, 1999. For provisions of former section, see the 1998 NMSA 1978 on NMOneSource.com.

ANNOTATIONS Repeals. — Laws 1999, ch. 57, § 1 repealed 7-27-5.9 NMSA 1978, as enacted by Laws 1988, ch. 134, § 2, relating to creation and purpose of oil and gas production assistance council, effective June 18, 1999. For provisions of former section, see the 1998 NMSA 1978 on NM…

A. The "capital development and reserve fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants and donations. Income from investment of the fund shall be credited to the fund. Money in the fund shall be exp…

The "capital development program fund" is created as a nonreverting fund as a subaccount of the severance tax bonding fund. The fund consists of distributions, appropriations, gifts, grants, donations and income from investment of the fund. The department of finance and administr…

funded by the capital development program fund. A. After the annual estimate of severance tax bonding capacity pursuant to Subsection B of Section 7-27-10.1 NMSA 1978, the board of finance division of the department of finance and administration shall allocate an amount equal to …

A. The money in the severance tax bonding fund is first pledged for the payment of principal and interest on all severance tax bonds issued after the enactment of the Severance Tax Bonding Act. B. The money in the severance tax bonding fund is second pledged, on a basis subordina…

When a law authorizing a severance tax bond issue or supplemental severance tax bond issue contemplates the income of money for the retirement of the bond issue other than or in addition to the money in the severance tax bonding fund, then the money derived from such income shall…

On each December 31 and each June 30 the state treasurer shall transfer to the severance tax permanent fund all money in the severance tax bonding fund except the amount necessary to meet all principal and interest payments on bonds payable from the severance tax bonding fund on …

supplemental severance tax bonds. A. Prior to July 1, 1999, all bonds issued wherein the money in the severance tax bonding fund is pledged for their retirement shall be known as "New Mexico severance tax bonds". B. After July 1, 1999, there shall be two categories of bonds issue…

Chapter 7, Article 29 NMSA 1978 may be cited as the "Oil and Gas Severance Tax Act". History: 1953 Comp., § 72-19-1, enacted by Laws 1959, ch. 52, § 1; 1985, ch. 65, § 27.

As used in the Oil and Gas Severance Tax Act: A. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary; B. "production unit" means a…

A. Any person required to make payment of tax pursuant to Section 7-29-7 or 7-29- 8 NMSA 1978 shall make the advance payment required by this section. B. For the purposes of this section: (1) "advance payment" means the payment required to be made by this section in addition to a…

ANNOTATIONS Repeals. — Laws 1985, ch. 65, § 46 repealed 7-29-3 NMSA 1978, as enacted by Laws 1959, ch. 52, § 3, relating to the purpose and declaration of intention of the Oil and Gas Severance Tax Act, effective July 1, 1985.

owner's liability to state; Indian liability. A. There is imposed and shall be collected by the department a tax on all products that are severed and sold, except as provided in Subsection B of this section. The measure of the tax and the rates are: (1) on natural gas severed and…

To determine the taxable value of oil and of other liquid hydrocarbons removed from natural gas at or near the wellhead, of carbon dioxide, of helium, of non-hydrocarbon gases, of natural gas from new production natural gas wells and of natural gas severed after June 30, 1990, th…

The department may determine the value of products severed from a production unit when: A. the operator and purchaser are affiliated persons; B. the sale and purchase of products is not an arm's length transaction; or when C. products are severed and removed from a production uni…

States of America, state of New Mexico or court; refund. When an increase in the value of any product is subject to the approval of any agency of the United States of America or the state of New Mexico or any court, the increased value shall be subject to this tax. In the event t…

ANNOTATIONS Repeals. — Laws 1989, ch. 130, § 14 repealed 7-29-4.4 NMSA 1978, as enacted by Laws 1980, ch. 97, § 2, relating to carbon dioxide severance tax imposed, collection, interest owner’s liability to state, Indian liability, effective June 16, 1989.

ANNOTATIONS Repeals. — Laws 1989, ch. 130, § 14 repealed 7-29-4.5 NMSA 1978, as enacted by Laws 1980, ch. 97, § 3, relating to method of determining taxable value on carbon dioxide, effective June 16, 1989.

ANNOTATIONS Repeals. — Laws 1995, ch. 70, § 23 repealed 7-29-4.6 NMSA 1978, as enacted by Laws 1980, ch. 62, § 11, relating to a temporary tax credit for persons liable for payment of taxes imposed by 7-26-9 NMSA 1978 or 7-29-4 NMSA 1978, effective July 1, 1995. For provisions of…

ANNOTATIONS Repeals. — Laws 1989, ch. 130, § 14 repealed 7-29-4.7 NMSA 1978, as enacted by Laws 1980, ch. 62, § 13, relating to surtax applicability, effective June 16, 1989.

The tax shall not be levied more than once on the same product. Reporting of products on which the tax has been paid shall be subject to department rule. History: 1953 Comp., § 72-19-8, enacted by Laws 1959, ch. 52, § 8; 1978 Comp., § 7- 29-5, 2025, ch. 130, § 116.

department may require withholding of tax; tax withheld to be remitted to the state; operator or purchaser to be reimbursed. A. Any operator making a monetary payment to an interest owner for the interest owner's portion of the value of products from a production unit shall withh…

Each operator shall, in the form and manner required by the department, file a return with the department showing the total value, volume and kind of products sold from each production unit for each calendar month. All taxes due or to be remitted by the operator shall accompany t…

Each purchaser shall, in the form and manner required by the department, file a return to the department showing the total value, volume and kind of products purchased by the purchaser from each production unit for each calendar month. All taxes due or to be remitted by the purch…

Chapter 7, Article 29A NMSA 1978 may be cited as the "Enhanced Oil Recovery Act". History: Laws 1992, ch. 38, § 1; 1993, ch. 30, § 26.

As used in the Enhanced Oil Recovery Act: A. "crude oil" means oil and other liquid hydrocarbons removed from natural gas at or near the wellhead; B. "division" means the oil conservation division of the energy, minerals and natural resources department; C. "enhanced recovery pro…

A. Crude oil severed and sold from an enhanced recovery project or the expansion of an existing project shall qualify for the recovered oil tax rate if, before the enhanced recovery project or expansion begins operation, the division approves the project or expansion and designat…

duties of the secretary. A. The division shall immediately notify the secretary of taxation and revenue upon: (1) certifying that a positive production response has occurred for an enhanced oil recovery project, in which case the notice shall contain the date certification was ma…

A. The person responsible for paying the oil and gas severance tax on production from the enhanced recovery project shall not qualify to receive the recovered oil tax rate unless that person: (1) applies to the secretary of taxation and revenue in the form and manner prescribed b…

Sections 1 through 6 [7-29B-1 to 7-29B-6 NMSA 1978] of this act may be cited as the "Natural Gas and Crude Oil Production Incentive Act". History: Laws 1995, ch. 15, § 1.

As used in the Natural Gas and Crude Oil Production Incentive Act: A. "average annual taxable value" means the average of the taxable value per barrel, determined pursuant to Section 7-31-5 NMSA 1978, of all oil produced in New Mexico for the specified calendar year as determined…

projects and stripper well properties. A. A natural gas or oil well shall be approved by the division as a production restoration project if: (1) the operator of the well makes application to the division in accordance with the provisions of the Natural Gas and Crude Oil Producti…