Taxation in new mexico – wikipedia k electric jobs 2015


New Mexico does not have a state sales tax. However, the state imposes a gross receipts tax (GRT) on many business transactions. This resembles a sales tax, but unlike most states’ sales taxes it applies to services, as well as tangible goods. Normally, the provider or seller passes the tax on to the purchaser, but legal incidence and burden apply to the business, as an excise tax. [13]

At the state level, gross receipts on most types of transactions are taxed at a rate of 5.125%. Local jurisdictions also levy gross receipt taxes at rates that vary around the state. The lowest combined state and local GRT rate, as of 2012-13, is 5.5% in unincorporated Lea County. The highest combined rate is 8.6875%, in Taos Ski Valley. Albuquerque, the state’s largest city, has a combined rate of 7.1875%. [14] [15] [16]

Property tax is imposed on real property by the state, by counties, and by school districts. Personal-use personal property is not subject to property taxation, but property tax is levied on most business-use personal property. The taxable value of property is one-third of the assessed value. A tax rate of about 30 mills is applied to the taxable value, resulting in an effective tax rate of about 1%. In the 2005 tax year the average millage was about 26.47 for residential property and 29.80 for non-residential property. Assessed values of residences cannot be increased by more than 3% per year unless the residence is remodeled or sold. Property tax deductions are available for military veterans and heads of household. [18] Natural resources taxes [ edit ] Oil and natural gas taxes [ edit ]

Oil and gas production is a significant source of revenue for the state. As of 2000, taxes and royalties on oil, natural gas, and carbon dioxide production together accounted for more than 25% of the revenue to the state’s general fund. The balance in New Mexico’s Severance Tax and Land Grant Permanent Funds, the earnings from which are dedicated to funding of schools and some state government operations, was almost entirely derived from these same sources. [21] A 2009 analysis found that New Mexico was receiving less revenue from the combination of its oil and gas taxes and royalties for oil and gas from public lands than most other U.S. states with substantial production of hydrocarbon fuels. This discrepancy was explained by the caps that state law placed on the maximum prices of oil and natural gas that could be subject to taxation. The maximum tax for oil was based on a price of $18 per barrel, but the market price rose to $112 per barrel as of May 2011. The maximum tax for natural gas was based on a price of $1.35 per 1000 cubic feet, but the market price for that volume of gas in May 2011 was $4.35. Other states were receiving much more tax and royalty revenue as a result of these high prices. [22] Legislation enacted in 2010 established a rate of 0.24% (an increase from 0.19%) for the oil and gas conservation tax rate on oil if the average price of West Texas Intermediate crude oil was more than $70 per barrel in the previous quarter. [23] Resources Excise Tax [ edit ]

The state’s Resources Excise Tax Act of 1978 established taxes on in-state production of natural resources, including timber, timber products, and minerals, except for oil, natural gas, liquid hydrocarbons, helium, carbon dioxide, and other non-hydrocarbon gases. [24]

The resources tax is a severance tax that applies to the extraction of natural resources. The amount of the tax is based on the taxable value of the severed resource. The tax on potash extraction is 0.5% of the resource value; molybdenum extraction is taxed at 0.125%; and all other extracted resources are taxed at 0.75%. [24]

The second tax, the processors tax, applies to the processing of natural resources. It also is based on the taxable value of the natural resource. Timber processing is taxed at 0.375% of taxable value; processing of potash and molybdenum is taxed at 0.125%; and processing of all other resources is taxed at 0.75%. [24]