Resource Excise Tax

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...

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:...

Resources tax rates are: For all natural resources except potash and molybdenum, the rate is three-fourths of one percent (3/4% or 0.75). The rate for potash is one-half of one percent (1/2% or 0.5). The rate for molybdenum is one-eighth of one percent (1/8% or...

Processors tax rates are: For all natural resources except timber, potash and molybdenum, the rate is three-fourths of one percent (3/4% or 0.75). The rate for timber is three eighths of one percent (3/8% or 0.375). The rate for potash is one-eighth of one percent...

The service tax rate is the same as the resources tax rate or the processors tax rate, depending on the job performed.

The taxes are due on or before the 25th day of the month following the month in which the first of the following occurs: sale, transportation out of New Mexico, or consumption, unless otherwise allowed by the Taxation and Revenue Department.