NMSA 1978, § 7-31-4 — 7-31-4

Privilege tax levied; collected by department; rate; interest
owner's liability to state; Indian liability.

# A.

There is imposed and shall be collected by the department a privilege tax on all
products that are severed and sold. The measure of the tax shall be:
(1) on oil and on oil and other liquid hydrocarbons removed from natural gas
at or near the wellhead, except as provided in Paragraphs (4) and (5) of this subsection,
three and fifteen-hundredths percent of the taxable value determined pursuant to
Section 7-31-5 NMSA 1978;
(2) on carbon dioxide, helium and non-hydrocarbon gases, three and fifteen-
hundredths percent of the taxable value determined pursuant to Section 7-31-5 NMSA
1978;
(3) on natural gas, except as provided in Paragraphs (6) and (7) of this
subsection, four percent of the taxable value determined pursuant to Section 7-31-5
NMSA 1978;
(4) on the oil and on other liquid hydrocarbons removed from natural gas at or
near the wellhead from a stripper well property, one and fifty-eight hundredths percent
of the taxable value determined pursuant to Section 7-31-5 NMSA 1978, provided that
the average annual taxable value of oil was equal to or less than fifteen dollars ($15.00)
per barrel in the calendar year preceding July 1 of the fiscal year in which the tax rate is
to be imposed;
(5) on the oil and on other liquid hydrocarbons removed from natural gas at or
near the wellhead from a stripper well property, two and thirty-six hundredths percent of
the taxable value determined pursuant to Section 7-31-5 NMSA 1978, provided that the
average annual taxable value of oil was greater than fifteen dollars ($15.00) per barrel
but not more than eighteen dollars ($18.00) per barrel in the calendar year preceding
July 1 of the fiscal year in which the tax rate is to be imposed;
(6) on the natural gas removed from a stripper well property, two percent of
the taxable value determined pursuant to Section 7-31-5 NMSA 1978, provided that the
average annual taxable value of natural gas was equal to or less than one dollar fifteen
cents ($1.15) per thousand cubic feet in the calendar year preceding July 1 of the fiscal
year in which the tax rate is to be imposed; and
(7) on the natural gas removed from a stripper well property, three percent of
the taxable value determined pursuant to Section 7-31-5 NMSA 1978, provided that the
average annual taxable value of natural gas was greater than one dollar fifteen cents
($1.15) per thousand cubic feet but not more than one dollar thirty-five cents ($1.35) per
thousand cubic feet in the calendar year preceding July 1 of the fiscal year in which the
tax rate is to be imposed.

# B.

Every interest owner, for the purpose of levying this tax, is deemed to be in the
business of severing products and is liable for this tax to the extent of the owner's
interest in the value of the products or to the extent of the owner's interest as may be
measured by the value of the products.

# C.

Any Indian tribe, Indian pueblo or Indian is liable for this tax to the extent
authorized or permitted by law.