OIL & GAS EQUALIZATION TAX ACT

HB 548, the "Oil and Gas Equalization Tax Act," proposes a new 0.85% tax on oil and gas production in New Mexico. It directly affects oil and gas producers (operators), royalty owners (interest owners), and purchasers of these products. The tax is calculated on the "taxable value" of products after deducting royalties paid to the state or tribes and reasonable trucking costs. Operators and purchasers must withhold the tax from payments to royalty owners and report monthly production volumes and values to the state tax department. The bill is currently pending, having been postponed indefinitely in June 2025.