SENATE BILL 728

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO TAXATION; AMENDING A SECTION OF THE RESOURCES EXCISE TAX ACT TO PROVIDE FOR A TAX RATE ON SEVERING COPPER.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. That version of Section 7-25-4 NMSA 1978 (being Laws 1999, Chapter 177, Section 2) that is to become effective July 1, 2005 is amended to read:

     "7-25-4. RATE AND MEASURE OF TAX--DENOMINATION AS "RESOURCES TAX".--

          A. For the privilege of severing natural resources, there is imposed on [any] a severer of natural resources in New Mexico an excise tax at the following rates on the taxable value of the natural resources:

                (1) all natural resources except copper, potash and molybdenum, three-fourths of one percent;

                (2) potash, one-half of one percent; [and]

                (3) molybdenum, one-eighth of one percent; and

                (4) copper:

                     (a) one-fourth of one percent when the price for copper on the commodity exchange of the New York mercantile exchange is below one dollar ($1.00) per pound; and

                     (b) three-fourths of one percent when the price for copper on the commodity exchange of the New York mercantile exchange is one dollar ($1.00) or more per pound.

          B. The tax imposed by this section shall be referred to as the "resources tax"."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.

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