HB 777

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AN ACT

RELATING TO THE OIL AND GAS RECLAMATION FUND; ENSURING THE

STABILITY OF FUNDS AVAILABLE IN THE OIL AND GAS RECLAMATION

FUND; INCREASING THE MAXIMUM AMOUNT TO BE HELD IN THE OIL AND

GAS RECLAMATION FUND BEFORE TRIGGERING A DECREASE IN THE OIL

AND GAS CONSERVATION TAX.

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

Section 1. Section 7-30-4 NMSA 1978 (being Laws 1959,

Chapter 53, Section 4, as amended) is amended to read:

"7-30-4. OIL AND GAS CONSERVATION TAX LEVIED--COLLECTED

BY DEPARTMENT--RATE--INTEREST OWNER'S LIABILITY TO STATE--

INDIAN LIABILITY.--

A. There is levied and shall be collected by the

department a tax on all products that are severed and sold.

Except as provided in Subsections B and C of this section, the

measure and rate of the tax shall be nineteen-hundredths

percent of the taxable value of sold products. Every interest

owner shall be liable for this tax to the extent of the

owner's interest in the value of the products or to the extent

of the owner's interest as may be measured by the value of the

products. An Indian tribe, Indian pueblo or Indian shall be

liable for this tax to the extent authorized or permitted by

law.

B. In the event the unencumbered balance in the

oil and gas reclamation fund equals or exceeds two million

five hundred thousand dollars ($2,500,000) for any one-month

period computed after receipt of the tax for that month, the

rate of the tax levied by this section shall be eighteen-

hundredths percent beginning with the first day of the second

month following the month in which the unencumbered balance

equaled or exceeded two million five hundred thousand dollars

($2,500,000).

C. After having been reduced to eighteen-

hundredths percent, the rate of the tax imposed by this

section shall remain at that rate until the unencumbered

balance in the oil and gas reclamation fund is less than or

equal to five hundred thousand dollars ($500,000) for any

one-month period computed after receipt of the tax for that

month, in which event the rate of the tax levied by this

section shall be increased to nineteen-hundredths percent

beginning with the first day of the second month following the

month in which the unencumbered balance equaled or was less

than five hundred thousand dollars ($500,000).

D. The department shall notify taxpayers of any

change in the rate of tax imposed by this section."

HB 777

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