2006 New Mexico Statutes - Section 7-30-4 — Oil and gas conservation tax levied; collected by department; rate; interest owner\'s liability to state; Indian liability.
7-30-4. Oil and gas conservation tax levied; collected by department; rate; interest owner's liability to state; Indian liability.
A. There is levied and shall be collected by the department a tax on all products that are severed and sold. Except as provided in Subsections B and C of this section, the measure and rate of the tax shall be nineteen-hundredths percent of the taxable value of sold products. Every interest owner shall be liable for this tax to the extent of the owner's interest in the value of the products or to the extent of the owner's interest as may be measured by the value of the products. An Indian tribe, Indian pueblo or Indian shall be liable for this tax to the extent authorized or permitted by law.
B. In the event the unencumbered balance in the oil and gas reclamation fund equals or exceeds one million one hundred fifty thousand dollars ($1,150,000) for any one-month period computed after receipt of the tax for that month, the rate of the tax levied by this section shall be eighteen-hundredths percent beginning with the first day of the second month following the month in which the unencumbered balance equaled or exceeded one million one hundred fifty thousand dollars ($1,150,000).
C. After having been reduced to eighteen-hundredths percent, the rate of the tax imposed by this section shall remain at that rate until the unencumbered balance in the oil and gas reclamation fund is less than or equal to five hundred thousand dollars ($500,000) for any one-month period computed after receipt of the tax for that month, in which event the rate of the tax levied by this section shall be increased to nineteen-hundredths percent beginning with the first day of the second month following the month in which the unencumbered balance equaled or was less than five hundred thousand dollars ($500,000).
D. The department shall notify taxpayers of any change in the rate of tax imposed by this section.
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