NMSA 1978, § 7-25-3 — Definitions

As used in the Resources Excise 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.

"natural resource" means timber and any product thereof and any metalliferous
or nonmetalliferous mineral product, combination or compound thereof, severed in New
Mexico but does not include oil, natural gas, liquid hydrocarbon individually or any
combination thereof, carbon dioxide, helium or nonhydrocarbon gas;

# C.

"person" means any individual, estate, trust, receiver, cooperative association,
club, corporation, company, firm, partnership, joint venture, syndicate or other entity;

# D.

"processing" means smelting, leaching, refining, reducing, compounding or
otherwise preparing for sale or commercial use any natural resource so that its
character or condition is materially changed in mills or plants located in New Mexico;

# E.

"processor" means any person engaging in the business of processing natural
resources that the person owns, or any person who is the owner of natural resources
and who has another person perform the processing of such natural resources;

# F.

"service charge" means the total amount of money or the reasonable value of
other consideration received for severing or processing any natural resource by any
person who is not the owner of the natural resource. However, if the money received
does not represent the value of the severing or processing performed, "service charge"
means the reasonable value of the severing or processing performed;

# G.

"severer" means any person engaging in the business of severing natural
resources that the person owns, or any person who is the owner of natural resources
and who has another person perform the severing of such natural resources;

# H.

"severing" means mining, quarrying, extracting, felling or producing any natural
resource in New Mexico for sale, profit or commercial use; and

# I.

"taxable value" means the value after severing or processing, without deduction
of any kind other than specified in this subsection, of any natural resource severed or
processed in New Mexico. It is presumed, in the absence of preponderant evidence of
another value, that the taxable value means the total amount of money or the
reasonable value of other consideration received for the severed or processed natural
resource. However, if the amount of money received does not represent the value of the
severed or processed natural resource or if the severed or processed natural resource
is not sold, the taxable value shall be the reasonable value of the severed or processed
natural resource. All natural resources severed or processed in New Mexico shall be
included in determining taxable value, regardless of the place of sale or the fact that
delivery may be made to points outside of New Mexico. If any person shall ship,
transmit or transport natural resources out of New Mexico without making sale of them
or shall ship, transmit or transport natural resources out of New Mexico in an unfinished
condition, the value of the natural resources in the condition in which they existed when
shipped, transmitted or transported out of New Mexico and before they enter interstate
commerce, without deduction of any kind other than specified in this subsection, shall
be the basis for determining the taxable value. Amounts received from selling natural
resources, other than metalliferous mineral ores, whether processed or unprocessed, to
the United States or any agency or instrumentality thereof, the state of New Mexico or
any political subdivision thereof, or to organizations that have demonstrated to the
department that they have been granted exemption from the federal income tax by the
United States commissioner of internal revenue as organizations described in Section
501 (c) (3) of the United States Internal Revenue Code of 1954, as amended or
renumbered, which employ the natural resource in the conduct of functions described in
Section 501 (c) (3) and not in the conduct of an unrelated trade or business as defined
in Section 513 of the United States Internal Revenue Code of 1954, as amended or
renumbered, may be deducted from taxable value. Any royalty or other similar interest,
whether payable in cash or in kind, paid to the United States or any agency or
instrumentality thereof, or the state of New Mexico or any political subdivision thereof, or
any Indian tribe, Indian pueblo or Indian that is a ward of the United States may be
deducted from taxable value. In computing taxable value, any owner of natural
resources may deduct any service charge on which the service tax imposed by Section
7-25-6 NMSA 1978 is payable.