New Mexico imposes a severance tax on the privilege of severing natural resources. "Natural resources" is defined as "timber and any metalliferous or nonmetalliferous mineral product, combination or compound thereof but does not include oil, natural gas, liquid hydrocarbon, individually or any combination thereof or carbon dioxide".
The severance tax applies at the following rates to the taxable value of the following natural resources:
- copper, 1/2%;
- timber, 1/8%;
- pumice, gypsum, sand, gravel, clay, fluorspar and other nonmetallic minerals, 1/8%;
- lead, zinc, thorium, molybdenum, manganese, rare earth and other metals, 1/8%,
- and gold and silver, 1/5%.
The severance tax on coal is $.57 per short ton for surface coal and $.55 per short ton for underground coal. There is a surtax also imposed on coal which is increased on July 1 of each calendar year for the previous calendar year. We compute the new rate in April and publish it on or before May 1 of each year.
The severance tax on severed and saved uranium-bearing material is three and one-half percent of the taxable value of each pound of severed and saved U3O8 contained in the uranium-bearing material.
The severance tax is paid on or before the twenty-fifth (25th) day of the month following the month in which the taxable event occurs.
New Mexico Taxation and Revenue Department
P.O. Box 2308
Santa Fe, NM 87504-2308
For assistance, call (505) 827-0808
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Energy, Minerals and Natural Resources Department
Forms and Publications
Statutory Reference: Look for Chapter 7, Article 26 NMSA 1978 in the New Mexico State Statutes.