Natural Gas Processors Tax
The natural gas processors tax is levied on processors for the privilege of operating a natural gas processing plant in New Mexico. It is measured at the plant’s inlet by the heating content of natural gas in million British thermal units (mmbtu). Deductions are allowed for products used for fuel by the processor, returned to the lease from which they were produced, legally flared or lost through plant malfunction.
Beginning on July 1, 1999, the rate was set at $.0065 per mmbtu, to be adjusted every July 1. The adjustment factor equals the average value of natural gas produced in New Mexico during the preceding calendar year divided by $1.33.
The tax is due monthly on or before the 25th day of the month after the month that the plant received the natural gas. We deposit the revenue from this tax in the Extraction Taxes Suspense Fund and transfer it monthly to the General Fund.
New Mexico Taxation and Revenue Department
P.O. Box 2308
Santa Fe, NM 87504-2308
For assistance, call (505) 827-0806
E-File Natural Gas Processors Tax at the ONGARD Service Center Web Site.
Who Must Register?
Oil and Gas Bureau
Statutory Reference: Look for Chapter 7, Article 33 NMSA 1978 in the New Mexico State Statutes.