us-nm/stat
NMSA 1978, § 7-32-28 — Advance payment required
A.
Any person required to make payment of tax pursuant to Section 7-32-10 or 7-
32-11 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 ad valorem production tax, penalty or interest due;
and
(2) "average tax" means the aggregate amount of tax, less any refunds or
credits, paid by a person during the twelve-month period ending March 31 pursuant to
the Oil and Gas Ad Valorem Production 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 Ad Valorem Production Tax Act and provide a tax
statement to each person required to pay tax pursuant to the Oil and Gas Ad Valorem
Production 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 Ad Valorem Production 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 Ad Valorem Production 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 Ad Valorem
Production 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 Ad Valorem Production Tax Act and
after receiving the tax statement provided by the department, a person required to pay
tax pursuant to the Oil and Gas Ad Valorem Production Tax Act may claim a credit
equal to the amount of advance payment made in the previous year, 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 Ad
Valorem Production 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 month when the person has liability under the Oil and Gas Ad Valorem
Production 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 Ad Valorem Production 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