Conservation Tax (Coal, Uranium and Geothermal Energy) 

Owners of coal, uranium or geothermal energy in New Mexico are subject to the conservation tax established by Section 7-30 NMSA 1978.

The taxable value of coal is determined under Section 7-25-3 NMSA after royalties paid or due to any Indian tribe, Indian pueblo, or Indian that is a ward of the United States.

The taxable value of uranium is 25% of the difference between the taxable value defined under Section 7-25-3 NMSA 1978 and royalties paid or due any Indian tribe, Indian pueblo, or Indian that is a ward of the United States.

The taxable value of geothermal energy is the value at the point of first sale, less the cost of transporting it from the point of severance to the point of first sale, less royalties paid or due the United States or the state of New Mexico or any Indian tribe, Indian pueblo, or Indian that is a ward of the United States.

 

The tax rate is nineteen-hundredths of one percent of the taxable value of the product sold. The Conservation Tax returns and payments are due by the 25th day of the month after the month of production.

 

We deposit the revenue to the Extraction Taxes Suspense Fund, from which refunds may be made. During periods in which the tax rate is .19%, 2/19 of the total collection is deposited in the Oil and Gas Reclamation Fund. The remainder is transferred to the General Fund.


Contact Information
New Mexico Taxation and Revenue Department
P.O. Box 2308
Santa Fe, NM 87504-2305

For assistance, call (505) 827-0958

Links

Manage your account online
Who Must Register?
New Mexico Energy, Minerals, and Natural Resources Department
RPD-41120, Conservation Tax Report
RPD-41218, Registration for Special Tax Programs

 

 

Frequently Asked Questions

Q. Where can an explanation of this tax be located?

Answer:
You can find it in Section 7-30 NMSA 1978.

Q. What is the rate for the Conservation tax on coal, uranium and geothermal energy?

Answer:
The rate of tax is nineteen-hundredths percent (.19%) of the taxable value of sold products.

Q. How is taxable value derived on coal, uranium and geothermal energy?

Answer:

Q. Which form do I use to file under this tax program for coal, uranium and geothermal energy?

Answer:
Use Form RPD–41120, Coal/Uranium Conservation Tax Report.

Q. What is the tax-due date?

Answer:
The tax is due on the 25th day of the month following the month of production unless otherwise authorized by the Department.
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