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.

 

Contact Information

New Mexico Taxation and Revenue Department
P.O. Box 2308
Santa Fe, NM 87504-2308
For assistance, call (505) 827-0806 

Links

E-File Natural Gas Processors Tax at the ONGARD Service Center Web Site. 
Who Must Register?
Forms
Oil and Gas Bureau
Statutory Reference: Look for Chapter 7, Article 33 NMSA 1978 in the New Mexico State Statutes.

Frequently Asked Questions

Q. Where can I find an explanation of this tax?

Answer:

Q. What is the purpose of the Natural Gas Processors tax?

Answer:
It is a tax on processors for the privilege of operating a natural gas processing plant in New Mexico.

Q. On what is the tax imposed?

Answer:
The tax is imposed on the amount of mmBtus of natural gas delivered to the processor at the inlet of the natural gas processing plant after taking specifically authorized mmBtu deductions. The definition of “mmBtu” is one million British thermal units.

Q. What is the tax rate?

Answer:
Per statute, the Taxation and Revenue Department (TRD) calculates the rate through a formula each year, and TRD must inform each processor of the rate on or before June 15th of each year.

Q. Are there any tax incentives related to this program?

Answer:
No.
  • Message from the Secretary
    Thank you again for making the 2012 tax-filing season a success. Largely because of your efforts, we were able to process nearly $260 million in personal income tax refunds in a timely and efficient fashion with very few errors. Read More     ​

E-File for accurate returns and faster refunds.
Federal automatic extensions also extend New Mexico income tax returns.
E-File and E-Pay and extend your income tax due date.
Get your refund faster when you E-File.
Low-income residents may qualify for income tax credits.
You may qualify for the Working Family Income Tax Credit.
You may qualify for the Earned Income Tax credits.
Estimated tax payments may be required if you withhold too little.
Manage your account online using Taxpayer Access Point.
Business closed? Update your CRS account online.
Gross receipts tax rates are subject to change in January and July.
NTTCs may be required to support tax-deductible sales.
Changing your address? Update your tax records online.
View payments and returns using Taxpayer Access Point.
Keep up with recent tax changes. See the instructions.
Keep accurate tax records for up to 10 years.
Double-check your figures. Errors will delay your return.
Get your money faster using refund express direct deposit.
Pay online by electronic check or credit card.
Avoid delays, submit a complete return.
Tax Fraud in New Mexico, call 1-800-457-6789.
Check the status of your refund, visit Taxpayer Access Point.
Pay your property taxes to your county treasurer.
Delinquent property taxes? See your local county treasurer’s office.
Find out who is managing your county government.
Property tax auctions are often held at the county treasurer’s office.
April property tax valuation determines your November tax bill.
Property taxes pay for schools, police, and hospitals.
Property was sold at auction? We may have your money.
Stop penalty and interest by paying your principal tax quickly.
Make sure you use correct tax ID numbers.
Refund express? Double-check your bank account and routing numbers.
Include your phone number and e-mail address when filing.
Secure your tax records from identity theft.
Generally, both spouses are responsible for liability on a joint return.
Sign and date your return.
Avoid preparers who base their fee on a percentage of the refund.
Tax fraud is the responsibility of the taxpayer
Visit Website