us-nm/stat
NMSA 1978, § 7-29-23 — Advance payment required
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 any oil and gas severance tax, penalty or interest due; and
(2) "average tax" means the aggregate amount of tax, less any refunds or
credits, paid by a person for the twelve-month period ending the last day of February
pursuant to the Oil and Gas Severance Tax Act divided by the number of months during
that period for which the person made payment.
C.
Each year, prior to July 1, the department shall compute the advance payment
required to be made pursuant to this section, compute the average tax for the filing
periods February through January of the subsequent year for each person required to
pay tax pursuant to the Oil and Gas Severance Tax Act and provide a tax statement to
each person required to pay tax pursuant to the Oil and Gas Severance Tax Act. The
average tax calculated for a year shall be used during the twelve-month period
beginning with July of that year and ending with June of the following year as the basis
for making the advance payments required by Subsection D of this section.
D.
Annually, by the twenty-fifth of the month in which a person files or amends that
person's first return pursuant to the Oil and Gas Severance Tax Act and after receiving
the tax statement provided by the department, a person required to pay tax in a month
pursuant to the Oil and Gas Severance Tax Act shall pay, in addition to any amount of
tax, interest or penalty due, an advance payment in an amount equal to the applicable
average tax, except:
(1) if the person is making a final return under the Oil and Gas Severance Tax
Act, no advance payment pursuant to this subsection is due for that return; and
(2) as provided in Subsection F of this section.
E.
Annually, by the twenty-fifth of the month in which a person files or amends that
person's first return pursuant to the Oil and Gas Severance Tax Act and after receiving
the tax statement provided by the department, a person required to pay tax pursuant to
the Oil and Gas Severance Tax Act may claim a credit equal to the amount of advance
payment made in the previous month, except as provided in Subsection F of this
section.
F.
If, in any year, a person is not required to pay tax pursuant to the Oil and Gas
Severance Tax Act, that person is not required to pay the advance payment and may
not claim a credit pursuant to Subsection E of this section; provided that, in any
succeeding year when the person has liability under the Oil and Gas Severance Tax
Act, the person may claim a credit for any advance payment made and not credited.
G.
In the event that the date by which a person is required to pay the tax pursuant to
the Oil and Gas Severance Tax Act is accelerated to a date earlier than the twenty-fifth
day of the second month following the month of production, the advance payment
provision contained in this section is void and any money held as advance payments
shall be credited to the taxpayers' accounts.
Source: official text