New Mexico Legislation HB353

New Mexico HB353 was introduced January 24, 2019 and is in the House Energy, Environment and Natural Resources Committee.

On natural gas from a stripper well property the severance tax rate is 1.875% of the taxable value provided that the average annual natural gas price is equal to or less than $2.00 per MCF. The $1.15 and $1.35 thresholds are removed.

On oil and other liquid hydrocarbons from a stripper well property the severance tax rate is 1.875% of the taxable value provided that the average annual oil price is equal to or less than $38.00 per barrel.   The $15.00 and $18.00 thresholds are removed.

The privilege tax on natural gas from a stripper well property is taxed at 2% of the taxable value provided that the average annual taxable price of natural gas is equal to or less than $2.00  per MCF.   The $1.15 and $1.35 thresholds are removed.  The privilege tax on oil and other liquid hydrocarbons from a stripper well property is taxed at 1.58% of the taxable value provided that the average annual taxable price of oil is equal to or less than $38.00 per barrel.  The $15.00 and $18.00 thresholds are removed.

Read the entire bill Here