NMSA 1978, § 7-2A-9.1 — 7-2A-9.1

Estimated tax due; payment of estimated tax; penalty;
exemption.

# A.

Every taxpayer shall pay estimated corporate income tax to the state of New
Mexico during its taxable year if its tax after applicable credits is five thousand dollars
($5,000) or more in the current taxable year. A taxpayer to which this section applies
shall calculate estimated tax by one of the following methods:
(1) estimating the amount of tax due, net of any credits, for the current taxable
year, provided that the estimated amount is at least eighty percent of the amount
determined to be due for the taxable year;
(2) using as the estimate an amount equal to one hundred percent of the tax
due for the previous taxable year, if the previous taxable year was a full twelve-month
year;
(3) using as the estimate an amount equal to one hundred ten percent of the
tax due for the taxable year immediately preceding the previous taxable year, if the
taxable year immediately preceding the previous taxable year was a full twelve-month
year and the return for the previous taxable year has not been filed and the extended
due date for filing that return has not occurred at the time the first installment is due for
the taxable year; or
(4) estimating the amount of tax due, net of any credits, for each fiscal quarter
of the current taxable year, provided that the estimated amount is at least eighty percent
of the amount determined to be due for that quarter.

# B.

If Subsection A of this section applies, the amount of estimated tax shall be paid
in installments as provided in this subsection. Twenty-five percent of the estimated tax
calculated under Paragraph (1), (2) or (3) of Subsection A of this section or one hundred
percent of the estimated tax calculated under Paragraph (4) of Subsection A of this
section is due on or before the following dates: the fifteenth day of the fourth month of
the taxable year, the fifteenth day of the sixth month of the taxable year, the fifteenth
day of the ninth month of the taxable year and the fifteenth day of the twelfth month of
the taxable year. Application of this subsection to a taxable year that is a fractional part
of a year shall be determined by regulation of the secretary.

# C.

Every taxpayer to which Subsection A of this section applies that fails to pay the
estimated tax when due or that makes estimated tax payments during the taxable year
that are less than the lesser of eighty percent of the income tax imposed on the
taxpayer under the Corporate Income and Franchise Tax Act or the amount required by
Paragraph (2), (3) or (4) of Subsection A of this section shall be subject to the interest
and penalty provisions of Sections 7-1-67 and 7-1-69 NMSA 1978 on the
underpayment.

# D.

For purposes of this section, the amount of underpayment shall be the excess of
the amount of the installment that would be required to be paid if the estimated tax were
equal to eighty percent of the tax shown on the return for the taxable year or the amount
required by Paragraph (2), (3) or (4) of Subsection A of this section or, if no return was
filed, eighty percent of the tax for the taxable year for which the estimated tax is due
less the amount, if any, of the installment paid on or before the last date prescribed for
payment.

# E.

For purposes of this section, the period of underpayment shall run from the date
the installment was required to be paid to whichever of the following dates is earlier:
(1) the fifteenth day of the third month following the end of the taxable year; or
(2) with respect to any portion of the underpayment, the date on which such
portion is paid. For the purposes of this paragraph, a payment of estimated tax on any
installment date shall be applied as a payment of any previous underpayment only to
the extent such payment exceeds the amount of the installment determined under
Subsection D of this section due on such installment date.

# F.

For the purposes of this section, the amount of tax deducted and withheld with
respect to a taxpayer under the Withholding Tax Act [Chapter 7, Article 3 NMSA 1978]
or the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act [Chapter 7,
Article 3A NMSA 1978] shall be deemed a payment of estimated tax. An equal amount
of the amount of withheld tax shall be deemed paid on each due date for the applicable
taxable year unless the taxpayer establishes the dates on which all amounts were
actually withheld, in which case the amounts withheld shall be deemed payments of
estimated tax on the dates on which the amounts were actually withheld. The taxpayer
may apply the provisions of this subsection separately to amounts withheld under the
Withholding Tax Act or the Oil and Gas Proceeds and Pass-Through Entity Withholding
Tax Act. Amounts of tax paid by taxpayers pursuant to Section 7-3A-3 NMSA 1978 shall
not be deemed a payment of estimated tax.