The tax is imposed on the amount of mmBtus of natural gas delivered to the processor at the inlet of the natural gas processing plant after taking specifically authorized mmBtu deductions. The definition of “mmBtu” is one million British thermal units.
Per statute, the Taxation and Revenue Department (TRD) calculates the rate through a formula each year, and TRD must inform each processor of the rate on or before June 15th of each year.
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Natural Gas Processor Tax No. Severance Tax - Non Oil & Gas A taxpayer may qualify for a credit against current coal severance taxes if the coal is severed from Indian tribal land or if a tax is imposed on the privilege of severing coal from Indian tribal land. This...
The return and the payment are due on or before the 25th day of the month after the close of the plant processing month.
The resources excise tax (Chapter 7, Article 25) provides revenue for public purposes by levying a tax on the privilege of severing and processing natural resources within New Mexico.
Generally, the resources excise tax is imposed on: timber and any timber product and any metalliferous or non-metalliferous mineral product, combination, or compound severed in New Mexico excepting oil, natural gas, liquid hydrocarbons, and carbon dioxide.
If you file the resources excise tax, you must file a severance tax report. If the taxpayer is not the owner of the natural resource, then the lessee must pay the tax.
“Processing” means smelting, leaching, refining, reducing, compounding or otherwise preparing for sale or commercial use any natural resource in such a way that its character or condition is materially changed in mills or plants located in New Mexico.
The three sections of the resources excise tax report are: Section A: “Resources Tax” - complete this section if the entity is the owner of the land where the extracting or felling is taking place; Section B: “Processors Tax”- applies if the entity owns the land and...