us-nm/stat
NMSA 1978, § 7-26-4 — Determination of taxable value of natural resources
A.
Except as otherwise provided in Subsections C, E, F and G of this section, the
"taxable event" is the severance of a natural resource whose taxable value is
determined under the provisions of this section.
B.
For all natural resources except potash or potash products described under
Subsection C of this section, molybdenum or molybdenum products described under
Subsection D of this section, copper, lead or zinc described in Subsection E of this
section, gold described in Subsection F of this section, silver described in Subsection G
of this section, coal and uranium, the gross value of the natural resource is the sales
value of the severed and saved product at the first marketable point without any
deductions, except that:
(1) for those products having a posted field or market price at the point of
production, the gross value is its posted field or market price, except that the gross
value of potash is forty percent of the posted field or market price, less those expenses
of hoisting, crushing and loading necessary to place the severed product in marketable
form and at a marketable place, but the allowable deductions for hoisting, loading and
crushing shall not exceed fifty percent of the posted field or market price; and
(2) for those products that must be processed or beneficiated before sale, the
gross value is the sales value after deducting freight charges from the point of
severance to the point of first sale and the cost of processing or beneficiation.
C.
The gross value for each type of potash and potash product requiring processing
or beneficiation (other than sizing), regardless of the form in which the product is
actually sold, shall be thirty-three and one-third percent of the proceeds realized from
the sale of muriate of potash and sulphate of potash magnesia, as standard grades, and
thirty-three and one-third percent of the value of such products consumed in the
production of other potash products, less fifty percent of such reported value as a
deduction for expenses of hoisting, loading, crushing, processing and beneficiation. For
purposes of this subsection, the taxable event occurs when products are sold or
consumed. Any potash or potash products, the value of which is computed under this
subsection, shall not also have their value computed by the use of any of the provisions
of Subsection B of this section.
D.
The gross value for each type of molybdenum and molybdenum product
requiring processing or beneficiation, regardless of the form in which the product is
actually sold, shall be the value of molybdenum contained in concentrates shipped or
sold from a mine site, but in no event a value less than the value that bona fide sales
which reflect current market conditions would yield for the same quantity of
molybdenum products contained in concentrates at the mine site, less fifty percent of
that value as a deduction for the expenses of hoisting, loading, crushing, processing
and beneficiation.
E.
The gross value for copper, lead and zinc shall be sixty-six and two-thirds
percent of the sales value established from published price data, as further described in
this subsection, of the quantity of copper, lead or zinc recoverable from the concentrate
or other product which is sold or is shipped, transmitted or transported out of New
Mexico without sale, less fifty percent of the sales value as a deduction for the
expenses of hoisting, loading, crushing, processing and beneficiation. For purposes of
this subsection, the taxable event occurs when the severer sells copper, lead or zinc in
New Mexico or when the severer ships, transmits or transports copper, lead or zinc out
of New Mexico without first making sale of it. The secretary shall designate by
regulation which published price index shall be used to establish the sales value for
each resource. The sales value for each resource shall be the monthly average price
published for each resource for the month in which the taxable event occurs. When the
taxable event is sale, the recoverable quantity of copper, lead or zinc shall be reported
as the provisional quantity determined by presale assay, and the reported quantity may
be adjusted in a report filed after final assay, if necessary. When the taxable event is
shipment, transmission or transportation out of New Mexico without sale, the
recoverable quantity of copper, lead or zinc shall be reported as the provisional quantity
determined after preshipment assay. Copper, lead or zinc shall not be considered saved
for the purposes of the Severance Tax Act unless the copper, lead or zinc can
economically be separated and saved from the dominant resource, which is the
resource subject to sale by the severer. Any copper, lead or zinc the value of which is
computed under this subsection shall not also have its value computed by the use of
any of the provisions of Subsection B of this section.
F.
The gross value for gold shall be the sales value established from published
price data, as further described in this subsection, of the quantity of gold recoverable
from the concentrate or other product which is sold or is shipped, transmitted or
transported out of New Mexico without sale, less fifty percent of the sales value as a
deduction for the expenses of hoisting, loading, crushing, processing and beneficiation.
For purposes of this subsection, the taxable event occurs when the severer sells gold in
New Mexico or when the severer ships, transmits or transports gold out of New Mexico
without first making sale of it. The secretary shall designate by regulation which
published price index shall be used to establish the sales value for gold. The sales
value for gold shall be the monthly average price published for gold for the month in
which the taxable event occurs. When the taxable event is sale, the recoverable
quantity of gold shall be reported as the provisional quantity determined by presale
assay, and the reported quantity may be adjusted in a report filed after final assay, if
necessary. When the taxable event is shipment, transmission or transportation out of
New Mexico without sale, the recoverable quantity of gold shall be reported as the
provisional quantity determined after preshipment assay. For purposes of the
Severance Tax Act, gold shall not be considered saved unless the gold can
economically be separated and saved from the dominant resource, which is the
resource subject to sale by the severer. Any gold the value of which is computed under
this subsection shall not also have its value computed by the use of any of the
provisions of Subsection B of this section.
G.
The gross value for silver shall be eighty percent of the sales value established
from published price data, as further described in this subsection, of the quantity of
silver recoverable from the concentrate or other product which is sold or is shipped,
transmitted or transported out of New Mexico without sale, less fifty percent of the sales
value as a deduction for the expenses of hoisting, loading, crushing, processing and
beneficiation. For purposes of this subsection, the taxable event occurs when the
severer sells silver in New Mexico or when the severer ships, transmits or transports
silver out of New Mexico without first making sale of it. The secretary shall designate by
regulation which published price index shall be used to establish the sales value for
silver. The sales value for silver shall be the monthly average price published for silver
for the month in which the taxable event occurs. When the taxable event is sale, the
recoverable quantity of silver shall be reported as the provisional quantity determined by
presale assay, and the reported quantity may be adjusted in a report filed after final
assay, if necessary. When the taxable event is shipment, transmission or transportation
out of New Mexico without sale, the recoverable quantity of silver shall be reported as
the provisional quantity determined after preshipment assay. For purposes of the
Severance Tax Act, silver shall not be considered saved unless the silver can
economically be separated and saved from the dominant resource, which is the
resource subject to sale by the severer. Any silver the value of which is computed under
this subsection shall not also have its value computed by the use of any of the
provisions of Subsection B of this section.
H.
The taxable value of all severed natural resources except coal and uranium is the
gross value of the severed resource determined under this section less rental or royalty
payments belonging to the United States or the state.
I.
The taxable value to be reported for severed and saved uranium-bearing material
is the sales price per pound of the content of U3O8 contained in the severed and saved
or processed uranium, regardless of the form in which the product is actually disposed
of, reduced by fifty percent for the purposes of Section 7-26-7 NMSA 1978. It is
presumed, in the absence of preponderant evidence of another value, that the sales
price means the total amount of money and the reasonable value of other consideration
received, or either of them, for the severed and saved uranium ore or processed
uranium "yellowcake" concentrate without deduction of any kind. However, if the
severed and saved uranium ore or "yellowcake" concentrate is not sold as ore or
concentrate, the sales price shall be the value of U3O8 in ore or "yellowcake"
concentrate represented in the final product.
Source: official text