1. All NM Taxes
  2. Severance Tax - Non Oil and Gas

Severance Tax – Non Oil and Gas

Are there any tax credits related to this tax program?

A taxpayer may qualify for a credit against current coal severance taxes if the coal is severed from Indian tribal land or if a tax is imposed on the privilege of severing coal from Indian tribal land. This credit is called the Intergovernmental Coal Severance Tax...

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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...

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What are the severance tax rates?

Severance tax rates are: Potash is 2 1/2% of taxable value Copper is 1/2% of taxable value Timber is 1/8% of taxable value Pumice, gypsum, sand, gravel, clay, fluorspar and other nonmetallic minerals are 1/8% of taxable value Lead, zinc, thorium, molybdenum,...

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How is the intergovernmental tax credit recognized?

Oil & Gas Production Taxes The tax credit applies only to “qualifying wells.” It is calculated each month by product and production unit at 75% of the lesser of: either the aggregate amount of severance, privilege, ad valorem or similar tax in effect...

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