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Copper Ad Valorem Tax

New Mexico levies an ad valorem tax upon the owner of each copper mineral property that is not subject to valuation and taxation under the Property Tax Code (Section 7-39-8 NMSA 1978)

In general, the tax is imposed instead of property taxes on active copper production properties.

The tax rate is the taxable value of each copper mineral property owned multiplied by the rate certified by the Department of Finance for nonresidential property. The valuation is reduced to 25% of the amount determined above if the properties are expected to be operated for one more year; to 45% if the anticipated operating period extends one to two years; to 60% if the anticipated operating period extends two to three years; and to 75% if the anticipated operating period extends to four years.

By March 31 of the tax year for which the value is being determined, owners of copper mineral property must report to the Department the value of each such property owned and the location of the taxing jurisdiction.

By November 1, the Department notifies taxpayers of the tax rate and the amount of taxes due. Taxes are due in two equal installments on December 10 of the year in which the tax is assessed and on May 10 of the following year.

We deposit the revenue in the Copper Production Tax Fund and distribute it to the state treasurer and county treasurers for distribution to taxing authorities like other property taxes.

Contact Information

New Mexico Taxation and Revenue Department
P.O. Box 25123
Santa Fe, NM 87504-5123

For assistance, call (505) 827-0717

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