2019 New Mexico Statutes
Chapter 7 - Taxation
Article 3A - Oil and Gas Proceeds and Pass-Through Entity Withholding Tax
Section 7-3A-4 - Deductions considered taxes.

Amounts deducted under the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act are a collected tax. A remittee who receives payment of oil and gas proceeds or an owner with an allocable share of net income does not have a right of action against the remitter or pass-through entity for the amount deducted and withheld from the oil and gas proceeds or an allocable share of net income.

History: 1978 Comp., § 7-3A-4, enacted by Laws 2003, ch. 86, § 7; 2010, ch. 53, § 11; 2012, ch. 40, § 3.

The 2012 amendment, effective May 16, 2012, measured net income by allocable shares and in the second sentence, after "or an owner with", deleted "a" and added "an allocable" and after the "gas proceeds or", added "an allocable share of".

Applicability. — Laws 2012, ch. 40, § 8 provided that the provisions of Laws 2012, ch. 40, §§ 1 through 7 are applicable to taxable years beginning on or after January 1, 2012.

The 2010 amendment, effective May 19, 2010, in the first sentence, added "and Pass-Through Entity" and in the second sentence , after "payment of oil and gas proceeds", added "or an owner with a share of net income"; after "against the remitter", added "or pass-through entity"; and after "withheld from oil and gas proceeds", added "or net income".

Temporary provisions. — Laws 2010, ch. 53, § 17 provided that for a taxable year beginning on or after January 1, 2011, but before January 1, 2012, no remitter or pass-through entity shall be subject to the penalty imposed pursuant to Section 7-1-69 NMSA 1978 for failure to comply with the provisions of the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act.