Bill > HB107

This bill amends existing New Mexico law to adjust the tax rates on oil and gas severance and privilege taxes, specifically for "stripper well property," which refers to wells producing a low volume of oil or natural gas. The changes primarily involve increasing the taxable value thresholds for oil and natural gas that qualify for lower tax rates. For oil from stripper wells, the threshold for the lower tax rate is raised from $15.00 per barrel to $60.00 per barrel, and the threshold for the next tax bracket is raised from $18.00 per barrel to $65.00 per barrel. Similarly, for natural gas from stripper wells, the taxable value thresholds for the lower tax rates are increased from $1.15 per thousand cubic feet to $3.00 per thousand cubic feet, and from $1.35 per thousand cubic feet to $3.50 per thousand cubic feet. These adjustments are intended to provide tax relief for certain oil and gas wells under specific economic conditions, as indicated by the price of West Texas Intermediate crude oil and the average taxable value of the extracted resources. The bill also clarifies that the liability for these taxes falls on the "interest owner," meaning the individual or entity with a financial stake in the production, and ensures that the language regarding this liability is gender-neutral.