HOUSE BILL 146

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

Luis M. Terrazas and Siah Correa Hemphill and

Crystal R. Diamond and Candie G. Sweetser and Rebecca Dow

AN ACT

RELATING TO TAXATION; PROVIDING A TEMPORARY DISTRIBUTION OF THE TAXES IMPOSED PURSUANT TO THE RESOURCES EXCISE TAX ACT ON COPPER TO COUNTIES WHERE THE COPPER IS SEVERED.

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

     SECTION 1. Section 7-1-6.20 NMSA 1978 (being Laws 1985, Chapter 65, Section 6, as amended) is amended to read:

     "7-1-6.20. IDENTIFICATION OF MONEY IN EXTRACTION TAXES SUSPENSE FUND--DISTRIBUTION.--

          A. Except as provided in Subsection B of this section, after the necessary disbursements have been made from the extraction taxes suspense fund, the money remaining in the suspense fund as of the last day of the month shall be identified by tax source and distributed or transferred in accordance with the provisions of Sections 7-1-6.21 through 7-1-6.23 and 7-1-6.61 NMSA 1978 and Section 2 of this 2022 act. After the necessary distributions and transfers, any balance, except for remittances unidentified as to source or disposition, shall be transferred to the general fund.

          B. Payments on assessments issued by the department pursuant to the Oil and Gas Conservation Tax Act, the Oil and Gas Emergency School Tax Act, the Oil and Gas Ad Valorem Production Tax Act and the Oil and Gas Severance Tax Act shall be held in the extraction taxes suspense fund until the secretary determines that there is no substantial risk of protest or other litigation, whereupon after the necessary disbursements have been made from the extraction taxes suspense fund, the money remaining in the suspense fund as of the last day of the month attributed to these payments shall be identified by tax source and distributed or transferred in accordance with the provisions of Sections 7-1-6.21 through 7-1-6.23 and 7-1-6.61 NMSA 1978. After the necessary distributions and transfers, any balance, except for remittance unidentified as to source or disposition, shall be transferred to the general fund."

     SECTION 2. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] DISTRIBUTION--RESOURCES EXCISE TAX ACT TAXES TO COUNTIES.--Prior to July 1, 2024, a distribution pursuant to Section 7-1-6.20 NMSA 1978 shall be made to each county in an amount equal to fifteen percent of the net receipts attributable to the taxes imposed pursuant to the Resources Excise Tax Act on the taxable value of copper severed in that county."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2022.

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