SENATE BILL 399

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO TAXATION; ENACTING THE WIND ENERGY PRODUCTION TAX ACT FOR PRODUCING ELECTRICITY FROM WIND FOR SALE OR TRADE OUTSIDE THIS STATE; DISTRIBUTING THE REVENUE FROM THE TAX TO THE TAX STABILIZATION RESERVE.

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

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 4 of this act may be cited as the "Wind Energy Production Tax Act".

     SECTION 2. [NEW MATERIAL] PRIVILEGE TAX LEVIED--COLLECTED BY THE TAXATION AND REVENUE DEPARTMENT--RATE--INTEREST OWNER'S LIABILITY TO STATE--INDIAN LIABILITY.--

          A. There is levied and shall be collected by the taxation and revenue department a privilege tax for producing electricity from wind resources in this state for sale or trade outside this state.

          B. The measure and rate of the tax shall be one dollar ($1.00) on each megawatt hour, or portion thereof, that is produced in this state.

          C. Every interest owner shall be liable for this tax to the extent of the owner's interest in the electricity produced. An Indian nation, tribe or pueblo shall be liable for this tax to the extent authorized or permitted by law.

          D. The tax imposed by this section may be referred to as the "wind energy production tax".

     SECTION 3. [NEW MATERIAL] EXEMPTION.--

          A. Exempted from the wind energy production tax is electricity produced from wind resources by:

                (1) the United States or any agency, department or instrumentality thereof;

                (2) the state of New Mexico or any political subdivision thereof;

                (3) any Indian nation, tribe or pueblo from activities or transactions occurring on its sovereign territory; or

                (4) any foreign nation or agency, instrumentality or political subdivision thereof, but only when required by a treaty in force to which the United States is a party.

          B. Exempted from the wind production tax is electricity produced from wind resources for the personal consumption of the producer, including any excess production of electricity not consumed by the producer that does not exceed five hundred kilowatt hours in a twenty-four-hour period.

     SECTION 4. [NEW MATERIAL] DATE PAYMENT DUE.--The tax imposed by the Wind Energy Production Tax Act is to be paid on or before February 1 of the year immediately following the year in which the electricity was produced.

     SECTION 5. Section 7-1-2 NMSA 1978 (being Laws 1965, Chapter 248, Section 2, as amended) is amended to read:

     "7-1-2. APPLICABILITY.--The Tax Administration Act applies to and governs:

          A. the administration and enforcement of the following taxes or tax acts as they now exist or may hereafter be amended:

                (1) Income Tax Act;

                (2) Withholding Tax Act;

                (3) Venture Capital Investment Act;

                (4) Gross Receipts and Compensating Tax Act and any state gross receipts tax;

                (5) Liquor Excise Tax Act;

                (6) Local Liquor Excise Tax Act;

                (7) any municipal local option gross receipts tax;

                (8) any county local option gross receipts tax;

                (9) Special Fuels Supplier Tax Act;

                (10) Gasoline Tax Act;

                (11) petroleum products loading fee, which fee shall be considered a tax for the purpose of the Tax Administration Act;

                (12) Alternative Fuel Tax Act;

                (13) Cigarette Tax Act;

                (14) Estate Tax Act;

                (15) Railroad Car Company Tax Act;

                (16) Investment Credit Act, rural job tax credit, Laboratory Partnership with Small Business Tax Credit Act, Technology Jobs and Research and Development Tax Credit Act, Film Production Tax Credit Act, Affordable Housing Tax Credit Act and high-wage jobs tax credit;

                (17) Corporate Income and Franchise Tax Act;

                (18) Uniform Division of Income for Tax Purposes Act;

                (19) Multistate Tax Compact;

                (20) Tobacco Products Tax Act; [and]

                (21) the telecommunications relay service surcharge imposed by Section 63-9F-11 NMSA 1978, which surcharge shall be considered a tax for the purposes of the Tax Administration Act; and

                (22) the Wind Energy Production Tax Act;

          B. the administration and enforcement of the following taxes, surtaxes, advanced payments or tax acts as they now exist or may hereafter be amended:

                (1) Resources Excise Tax Act;

                (2) Severance Tax Act;

                (3) any severance surtax;

                (4) Oil and Gas Severance Tax Act;

                (5) Oil and Gas Conservation Tax Act;

                (6) Oil and Gas Emergency School Tax Act;

                (7) Oil and Gas Ad Valorem Production Tax Act;

                (8) Natural Gas Processors Tax Act;

                (9) Oil and Gas Production Equipment Ad Valorem Tax Act;

                (10) Copper Production Ad Valorem Tax Act;

                (11) any advance payment required to be made by any act specified in this subsection, which advance payment shall be considered a tax for the purposes of the Tax Administration Act;

                (12) Enhanced Oil Recovery Act;

                (13) Natural Gas and Crude Oil Production Incentive Act; and

                (14) intergovernmental production tax credit and intergovernmental production equipment tax credit;

          C. the administration and enforcement of the following taxes, surcharges, fees or acts as they now exist or may hereafter be amended:

                (1) Weight Distance Tax Act;

                (2) the workers' compensation fee authorized by Section 52-5-19 NMSA 1978, which fee shall be considered a tax for purposes of the Tax Administration Act;

                (3) Uniform Unclaimed Property Act (1995);

                (4) 911 emergency surcharge and the network and database surcharge, which surcharges shall be considered taxes for purposes of the Tax Administration Act;

                (5) the solid waste assessment fee authorized by the Solid Waste Act, which fee shall be considered a tax for purposes of the Tax Administration Act;

                (6) the water conservation fee imposed by Section 74-1-13 NMSA 1978, which fee shall be considered a tax for the purposes of the Tax Administration Act; and

                (7) the gaming tax imposed pursuant to the Gaming Control Act; and

          D. the administration and enforcement of all other laws, with respect to which the department is charged with responsibilities pursuant to the Tax Administration Act, but only to the extent that the other laws do not conflict with the Tax Administration Act."

     SECTION 6. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] DISTRIBUTION--WIND ENERGY PRODUCTION TAX.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the tax stabilization reserve in an amount equal to the net receipts attributable to the wind energy production tax."

     SECTION 7. APPLICABILITY.--The provisions of this act apply to the production of electricity from wind resources beginning on and after January 1, 2020.

     SECTION 8. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2020.

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