New Mexico Statutes
Article 32 - Oil and Gas Ad Valorem Production Tax
Section 7-32-6 - Value may be determined by commission; standard.

The commission may determine the value of products severed from a production unit when:
A. the operator and purchaser are affiliated persons; or when
B. the sale and purchase of products is not an arm's length transaction; or when
C. products are severed and removed from a production unit and a value as defined in this act is not established for such products.
The value determined by the commission shall be commensurate with the actual price received for products of like quality, character and use which are severed in the same field or area.
History: 1953 Comp., § 72-22-6, enacted by Laws 1959, ch. 55, § 6.
Compiler's notes. — The term "this act", as it appears in Subsection C, means Laws 1959, ch. 55, compiled as 7-32-1, 7-32-2, 7-32-4 to 7-32-11, 7-32-13 to 7-32-15 NMSA 1978.
Cross references. — For meaning of "commission", see 7-32-2A NMSA 1978.
Determination of value. — The statute does not mandate the way in which the department must calculate processing costs, whether by a comparable value or by some other method. Rather, the final value of natural gas calculated by the department must be commensurate with similar products. Chevron U.S.A., Inc. v. State ex rel. Taxation and Revenue Dep't, 2006-NMCA-050, 139 N.M. 498, 134 P.3d 785, cert. denied, 2006-NMCERT-005, 139 N.M. 567, 136 P.3d 568.

Structure New Mexico Statutes

New Mexico Statutes

Chapter 7 - Taxation

Article 32 - Oil and Gas Ad Valorem Production Tax

Section 7-32-1 - Title.

Section 7-32-2 - Definitions.

Section 7-32-3 - Repealed.

Section 7-32-4 - Ad valorem tax levied; collected by division; rate; interest owner's liability to state; Indian liability.

Section 7-32-5 - Assessed value; method of determining.

Section 7-32-6 - Value may be determined by commission; standard.

Section 7-32-7 - Price increase subject to approval of agency of United States of America, state of New Mexico or court; refund.

Section 7-32-8 - Products on which tax has been levied; regulation by commission.

Section 7-32-9 - Operator or purchaser to withhold interest owner's tax; commission may require withholding of tax; tax withheld to be remitted to the state; operator or purchaser to be reimbursed.

Section 7-32-10 - Operator's report; tax remittance; additional information.

Section 7-32-11 - Purchaser's report; tax remittance; additional information.

Section 7-32-12 - Repealed.

Section 7-32-13 - Division shall prepare schedules and forward to assessors; assessor shall deliver schedule to treasurer.

Section 7-32-14 - Monthly report to department of finance and administration; remittance to state and county treasurers; state and county treasurers may distribute funds.

Section 7-32-15 - Determination of assessed values for taxing districts.

Section 7-32-16 - Repealed.

Section 7-32-17 - Repealed.

Section 7-32-18 - Repealed.

Section 7-32-19 - Repealed.

Section 7-32-20 - Repealed.

Section 7-32-21 - Repealed.

Section 7-32-22 - Repealed.

Section 7-32-23 - Repealed.

Section 7-32-24 - Repealed.

Section 7-32-25 - Repealed.

Section 7-32-26 - Repealed.

Section 7-32-27 - Repealed.

Section 7-32-28 - Advance payment required.