NMSA 1978, § 7-36-25 — 7-36-25

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

# A.

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

# B.

The following kinds of property held or used in connection with uranium mineral
property shall be valued under the methods of valuation required by the Property Tax
Code:
(1) improvements, equipment, materials, supplies and other personal property
held or used in connection with all classes of uranium mineral property; "improvements"
as used in this section includes surface and subsurface structures, but does not include
pits, shafts, drifts or 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; and
(2) the surface value for agricultural or other purposes of class one productive
or nonproductive uranium mineral property when the surface interest is held in the same
ownership as the mineral interests.

# C.

The value for property taxation purposes of class one productive, class two and
class three uranium mineral property is the annual net production value of the uranium
mineral property.

# D.

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

# E.

For the purposes of this section, the "annual net production value" means:
(1) the sales price of uranium-bearing material disposed of as ore or solution,
less fifty percent of that sales price as a deduction for the cost of producing and bringing
the output to the surface and of transporting and selling it; or
(2) in the case of uranium-bearing material not disposed of as ore or solution
but processed or beneficiated (other than by sizing and blending), regardless of the
form in which the product is actually disposed of, the value of U3O8 contained in ore or
solution determined on the basis of the U3O8 content of the ore or solution at fifty
percent of the taxpayer's average unit sales price during the preceding calendar year of
U3O8 contained in the concentrate form commonly known as "yellowcake" (or if the
uranium concentrate has not been sold in the preceding calendar year, at fifty percent of
the representative sales price for U3O8 contained in the concentrate form commonly
known as "yellowcake" at the place and time of processing or beneficiation into that
concentrate), plus fifty percent of the representative sales price of all other minerals
produced and saved from such uranium-bearing material, less fifty percent of the value
as a deduction for the cost of producing and bringing the output to the surface from an
underground mine.

# F.

In determining annual net production value of class two and class three uranium
mineral property, a deduction may be taken for 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,
but the deduction allowed by this subsection must be subtracted from one hundred
percent of the applicable sales price before applying any other reductions in or
deductions from that sales price.