Oil Natural Gas & Mineral Extraction Taxes

Oil, natural gas and mineral extraction and related industries (severance, processing, pipelines, oil well services, for example) are among the chief sources of revenue for New Mexico.

This page provides revenue and statistical information on these taxes.

• Ad Valorem Production and Equipment Taxes
• Taxation of Coal and Other Energy Resources
• Revenues from Oil and Natural Gas
• Revenues from Hard Minerals

For reports on oil, natural gas and other hydrocarbons used by the Tax Analysis, Research and Statistics Office. Go to this page, choose either “Reports – Historical Tax Research…” or “Reports – Current Tax Research…”.

Oil and Gas Severance Reports

Select report(s) of interest and enter prompted selection criteria.

Monthly Oil and Gas Production & Equipment Distribution Reports

Oil and Gas Ad Valorem Equipment Tax

This is an ad valorem tax on equipment used in production of oil, natural gas, carbon dioxide and non-hydrocarbon gas. The tax is on the assessed value of the equipment. The assessed value of the equipment is a percentage of its value as established under the Ad Valorem Production Tax multiplied by the uniform assessment ratio. Section 7-34-1 NMSA 1978

Oil and Gas Ad Valorem Production Tax

This is an ad valorem tax on the assessed value of products severed and sold from each production unit. The assessed value is determined by applying the uniform assessment ratio to the taxable value of products. The tax is governed by Section 7-32-1 et seq. NMSA 1978.

Note: Tax collections are distributed the 3rd month after the accrual (business activity) month. For example, the file for OG Production reflects business activity in September, the collection month was November (tax returns were due by November 25th), and these collections were distributed in December.

To access your ACH Transfer Notice and Distribution Summary, select a report below. Once the file is open, use the down arrow on the tool bar at the top of the screen to navigate to the letter that applies to your local government or school district.

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