1. All NM Taxes
  2. Frequently Asked Questions
  3. What is the purpose of the severance tax?

What is the purpose of the severance tax?

For the privilege of severing natural resources in New Mexico, the severer is subject to an excise tax on the taxable value of the quantity of natural resources severed and saved by or for him as determined under, and at the rates provided by the Severance Tax Act.