NMSA 1978, § 7-36-24 — 7-36-24

Special method of valuation; mineral property and property
used in connection with mineral property when the primary
production from the mineral property is potash.

# A.

The provisions of this section apply to valuation of all mineral property and
property used in connection with mineral property when the primary production from the
mineral property is potash.

# B.

The value for property taxation purposes of improvements, equipment, materials,
supplies and other personal property held or used in connection with all classes of
potash mineral property is an amount equal to the market value of all mineral production
from the potash mineral property for the prior year, less any royalties paid or due the
United States, the state or any Indian tribe, Indian pueblo or Indian who is a ward of the
United States. "Improvements" as used in this section includes surface and subsurface
structures, but does not include pits, shafts, drifts and other similar artificial changes in
the physical condition of the surface or subsurface of the earth produced solely by the
removal or rearrangement of earth or minerals for the purpose of exposing or removing
ore from a mine.

# C.

The value for property taxation purposes of the surface value for agricultural or
other purposes held in connection with class one productive or nonproductive potash
mineral property, when the surface interest is held in the same ownership as the mineral
interests, shall be determined under the methods of valuation required by the Property
Tax Code.

# D.

The value for property taxation purposes of class one productive potash mineral
property is an amount equal to fifty percent of the market value of all mineral production
from the potash mineral property for the prior year.

# E.

The value for property taxation purposes of class two and class three potash
mineral property is an amount equal to fifty percent of the amount derived by deducting
from the market value of all mineral production from the potash mineral property for the
prior year any royalties paid or due the United States, the state or any Indian tribe,
Indian pueblo or Indian who is a ward of the United States.

# F.

The value for property taxation purposes of class one nonproductive potash
mineral property shall be determined under Subsection E of Section 7-36-23 NMSA
1978.

# G.

If a taxpayer severs potash in one or more governmental units and processes the
severed potash in another governmental unit, the value of all interests in minerals shall
be allocated to the governmental unit or units in which the potash is severed, and the
value of improvements, equipment, materials, supplies and personal property shall be
allocated among the governmental units in which the property is located on the basis of
the original cost of the property.

# H.

The department shall adopt regulations specifying procedures to be followed
under, and the details of, the method for valuation of potash mineral property specified
in this section. The department shall also adopt regulations for the allocation of values
of potash mineral property among the governmental units.