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HB 107: REDUCED TAX RATE FOR CERTAIN OIL & GAS WELLS

An Act Relating To Taxation; Providing Reduced Tax Rates On Oil And Natural Gas Removed From A Stripper Well If The Average Annual Taxable Value Of Oil Or Natural Gas Reaches Certain Amounts; Amending A Section Of The Oil And Gas Severance Tax Act And A Section Of The Oil And Gas Emergency School Tax Act.

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MOD HB 107
REDUCED TAX RATE FOR CERTAIN OIL & GAS WELLS

Legislative URL:
HB 107 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
HWMC
Action:
HPREF [1] HEENC/HWMC-HEENC [4] DP-HWMC API.
Issue(s):

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
HEENC Committee Report
Fiscal Impact Report
Summary

This bill reduces by up to 50% the severance and privilege taxes on natural gas and oil from a stripper well property, if the value of natural gas in the preceding calendar was between $1.15 and $3.50 per thousand cubic feet, and if the value of oil was between $15.00 and $65.00 per barrel.

 

The same reductions currently apply if the value of natural gas is $1.15 or less and if the value of oil is $15.00 or less.

 

A potential effect of this bill is that it may stimulate additional production of natural gas and oil from existing low-volume wells that may otherwise be nearing the end of their productive life.