45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO TAXATION; AUTHORIZING COUNTIES TO IMPOSE RESOURCE EXCISE TAXES; PROVIDING FOR AN INTERGOVERNMENTAL TAX CREDIT; PROVIDING FOR COOPERATIVE AGREEMENTS WITH COUNTIES; LIMITING THE USE OF COUNTY TAX REVENUES; ENACTING SECTIONS OF THE NMSA 1978.

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

Section 1. [NEW MATERIAL] RESOURCE EXCISE TAX.--

A.  A county may impose an ad valorem tax at a rate not to exceed three percent of the value on all products that are severed and sold from lands within the county other than tribal lands.

B. For the purposes of this section, "tribal land" means all land in New Mexico that, on March 1, 2001, was within the exterior boundaries of the reservation or pueblo grant of an Indian nation, tribe or pueblo, was within a dependent Indian community of the Indian nation, tribe or pueblo or was held in trust by the United States for the Indian nation, tribe or pueblo.

Section 2. [NEW MATERIAL] USE OF TAX REVENUES--ECONOMIC DEVELOPMENT PLANS.--All revenues from a resource excise tax imposed by a county shall by used solely for implementing economic development plans and projects pursuant to the Local Economic Development Act.

Section 3. A new section of Chapter 7, Article 29C NMSA 1978 is enacted to read:

"[NEW MATERIAL] INTERGOVERNMENTAL TAX CREDIT--SEVERANCE TAX.--

A. Any person who is liable pursuant to Chapter 7, Article 26 or 29 NMSA 1978 for the payment of the severance tax on products severed and sold from land within a county other than tribal land is entitled to a credit to be computed under this section and to be deducted from the payment of the county resource excise tax. The credit provided by this section may be referred to as the "intergovernmental severance tax credit".

B. For the purposes of this section, "tribal land" means all land in New Mexico that, on March 1, 2001, was within the exterior boundaries of the reservation or pueblo grant of an Indian nation, tribe or pueblo, was within a dependent Indian community of the Indian nation, tribe or pueblo or was held in trust by the United States for the Indian nation, tribe or pueblo.

C. The intergovernmental severance tax credit shall be determined separately for each calendar month and shall be equal to seventy-five percent of the lesser of:

(1) the aggregate amount of tax due under the county resource excise tax imposed by the county upon products severed and sold from land within the county other than tribal land, the value of products severed and sold, the privilege of severing a product or the value of the leasehold interest; or

(2) the aggregate amount of severance tax and surtax due the state pursuant to Chapter 7, Article 26 and 29 NMSA 1978 upon products severed and sold from land within the county other than tribal land.

D. Notwithstanding any other provision of law to the contrary, the amount of credit taken and allowed shall be applied proportionately against the amount of severance tax and the amount of surtax due.

E. The burden of showing entitlement to a credit authorized by this section is on the taxpayer claiming it, and the taxpayer shall furnish to the appropriate tax collecting agency, in the manner determined by the taxation and revenue department, proof of payment of any county tax on which the credit is based.

F. The taxation and revenue department is authorized to promulgate rules or instructions prescribing the method by which a taxpayer may allocate credit for a tax imposed by a county on a basis other than monthly against the monthly amounts of severance tax and surtax due."

Section 4. A new section of the Taxation and Revenue Department Act is enacted to read:

"[NEW MATERIAL] COOPERATIVE AGREEMENTS WITH COUNTIES.--

A. The secretary may enter into cooperative agreements with a county for the administration, collection, remittance and audit of tax revenues of the party jurisdictions.

B. Money collected by the department on behalf of the county in accordance with an agreement entered into pursuant to this section shall be collected and disbursed in accordance with the terms of the agreement, notwithstanding any other provision of law.

C. The secretary is empowered to promulgate rules and to establish procedures as the secretary deems appropriate for the collection and disbursement of funds due the county."

Section 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.