us-nm/stat
NMSA 1978, § 7-39-4 — Valuation of copper mineral property
A.
The valuation for purposes of the Copper Production Ad Valorem Tax Act of
copper mineral property of the following types shall be determined annually, except as
provided otherwise in Subsection B, C or D of this section, as follows:
(1) the value of any mine and all real property and personal property held or
used for the mining of ore from the mine:
(a) any part of which is mined for processing in a concentrator shall be thirty
percent of the value of salable copper and other minerals contained in concentrate
produced from the ore produced from the mine; or
(b) which is mined solely for solvent extraction or electrowinning shall be
twenty percent of the value of salable copper and other minerals produced through
solvent extraction or electrowinning from the ore produced from the mine;
(2) the value of a concentrator and all real property and personal property
held or used in connection with the concentrator shall be twenty-five percent of the
value of salable copper and other minerals contained in concentrate produced in the
concentrator;
(3) the value of a precipitation plant and all real property and personal
property held or used in connection with the precipitation plant shall be twenty-five
percent of the value of salable copper and other minerals contained in precipitate
produced in the precipitation plant;
(4) the value of the solvent extraction or electrowinning plant and all real
property and personal property held or used in connection with the solvent extraction or
electrowinning plant shall be one hundred thirty-five percent of the value of salable
copper and other minerals produced through the solvent extraction or electrowinning
process, less four times the value of property determined for the same tax year under
Subparagraph (b) of Paragraph (1) of this subsection; and
(5) the value of a smelter and all real property and personal property held or
used in connection with the smelter shall be twenty-one percent of the value of salable
copper and other minerals produced in the smelter.
B.
A property, which has been valued in accordance with the Copper Production Ad
Valorem Tax Act in any preceding year and which is permanently shut down on or
before January 1 of any year for which a valuation is to be made under the Copper
Production Ad Valorem Tax Act, is no longer subject to the Copper Production Ad
Valorem Tax Act and is subject instead to the provisions of the Property Tax Code
[Chapter 7, Articles 35 through 38 NMSA 1978].
C.
A copper mineral property from which no copper or other minerals were mined or
processed during a period of at least twelve months immediately prior to the beginning
of the tax year for which valuation is being determined is not subject to the Copper
Production Ad Valorem Tax Act and is subject instead to the provisions of the Property
Tax Code.
D.
This subsection applies only to copper mineral properties with respect to which
the owner, as part of the annual report to the department, declares for the tax year for
which valuation is being determined or has declared for any prior tax year that a copper
mineral property will remain in operation for a period less than four years and will not be
replaced or reconstructed:
(1) the valuation of a copper mineral property subject to this subsection shall
be the value determined under Subsection A of this section for that property multiplied
by:
(a) twenty-five percent for properties with an anticipated operating period of
less than one year as of the beginning of the tax year for which valuation is being
determined;
(b) forty-five percent for properties with an anticipated operating period of at
least one year but less than two years as of the beginning of the tax year for which
valuation is being determined;
(c) sixty percent for properties with an anticipated operating period of at least
two years but less than three years as of the beginning of the tax year for which
valuation is being determined; and
(d) seventy-five percent for properties with an anticipated operating period of
at least three years but less than four years as of the beginning of the tax year for which
valuation is being determined; and
(2) if the owner declared in a prior annual report that the copper mineral
property would remain in operation for a period less than four years and the owner, in
the annual report for the tax year for which valuation is being determined, does not
declare that the property will remain in operation for a period less than four years,
declares that permanent shutdown is not anticipated within four years or declares that
permanent shutdown is anticipated in a year subsequent to the year declared in the
prior tax year, there shall be added to the property's valuation determined under
Subsection A of this section or Paragraph (1) of this subsection, as appropriate, one
hundred percent of:
(a) if the owner fails to make a declaration or declares that the property will
remain in operation for a period of at least four years, the difference between the
valuation for the property determined solely under Subsection A of this section for each
prior tax year in which the owner had declared the property would remain in operation
for a period less than four years and the respective valuations in those prior tax years
determined under this subsection; or
(b) if the year of anticipated permanent shutdown declared in the prior tax
year annual report is earlier than that in the subsequent annual report, the difference
between the valuation for the prior tax year determined under this subsection using the
later date of anticipated permanent shutdown and the valuation for that prior tax year
determined under this subsection in that prior tax year; and
(3) when value is added pursuant to Paragraph (2) of this subsection to the
valuation otherwise determined for the copper mineral property, the property owner
shall pay interest at the rate determined under Section 7-1-67 NMSA 1978 on the
additional taxes due and penalty at the rate determined under Subsection A of Section
7-1-69 NMSA 1978. The interest and penalty shall be measured from the dates that the
taxes were due to have been paid for the tax year from which the additional valuation
derived.
Source: official text